refinance home VA loan

Refinance, VA Loans

How to Refinance Your Conventional Home Loan to a VA Loan

Refinancing from a conventional loan to a VA loan can provide significant benefits for eligible borrowers. In this article, we’ll walk through the process step-by-step, covering everything you need to know to successfully switch to a VA loan. Understanding the VA loan requirements, assessing your current loan, and finding the right lender are all key steps in the process that we’ll talk about in detail. You’ll also learn how refinancing to a VA loan can help you save money long-term.


Understanding VA Loans

VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs. They offer major advantages like no down payment and lower interest rates. To qualify, you must meet active duty or veteran status requirements. VA loans help eligible borrowers purchase a home with no down payment or refinance their current loan under better terms.


Assessing Your Current Conventional Loan 

Before applying for a refinance loan, gather details on your current mortgage like the remaining balance, interest rate, and monthly payments. Compare these to current VA loan rates and payments. Identify your motivations for refinancing, like lowering your rate or payments. This information will help you determine if refinancing from a conventional loan to a VA loan makes financial sense.


Meeting VA Loan Eligibility Requirements

To qualify for a VA home refinance, you must meet VA guidelines like having a prior honorable discharge. You can obtain your Certificate of Eligibility through the VA website to verify eligibility. If you have any concerns about meeting service requirements, you’ll want to address these with a VA lender. 


Finding a VA-Approved Lender

You should take your time to research lenders thoroughly and compare interest rates. Consider each lender’s reputation and experience with VA loans. An experienced VA lender can guide you through the process smoothly.


The Refinancing Process 

Fortunately, refinancing your home is a fairly straightforward process. With the right lender on your side, you should be able to complete the process quickly without any major issues. Refinancing steps include:

  1. Consultation and prequalification 
  2. Submitting documentation and application
  3. Appraisal and property inspection  
  4. Underwriting and approval
  5. Closing and funding 


If everything goes well, expect 1-2 months to complete the process. That being said, don’t be surprised if you encounter some unexpected hurdles that cause the process to take longer. It’s also important to note that refinancing costs will vary depending on the particulars of the borrower’s situation.


Benefits and Considerations

Refinancing to a VA loan can mean lower rates and payments. That being said, you should also consider the expenses involved such as closing costs and fees. You’ll want to carefully consider how refinancing impacts your finances in the long term before deciding. 


Get Started with the Process

If you want to explore your options, contact us today to start the process or get answers to your VA loan questions. Our experienced team is ready to help you make the best decision and help you refinance your home loan.