Forgotten Your Password?

Need to Register?

Question Icon

What advantages are there for getting a conventional refinance over a VA refinance/IRRRL?

by HDente from Chicago, Illinois. Mar 5th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

It really depends on what your home's value is in relation to what your financing, or Loan to Value (LTV)... if you have 20% equity or more, you will be better off going conventional... no mortgage insurance and no funding fee.... it will be a fully qualifying loan, so you would pay for an appraisal, have to provide taxes, pay stubs, bank statements etc... With VA, you can refinance without an appraisal, (Most cases), and will not need tax returns, etc... You will pay a funding fee (.50% of your loan amount), but it will be a much easier and faster loan to close.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 5th 2013
1
0
Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

You wont have to pay the VA funding fee

Mar 5th 2013
0
0
Ray Antonelli (Focused)
#68 ranked lender in Ohio - 66 contributions

Conventional Refi eliminates the mortgage insurance but may not be available to those with credit issues.FHA or VA would be a better option.

Mar 5th 2013
0
0
Bruce Dawson (bdawson)
#20 ranked lender in Tennessee - 29 contributions

With a VA IRRRL there is no income or asset verification. If you are bringing money to the closing, such as paying your taxes instead of financing them in the loan, you would then have to verify assets, but no income verification. If an investor doesn't require an appraisal as an overlay, IRRRL's are usually faster to close.

Mar 5th 2013
0
0
Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

I would vote for VA even though they have a Funding Fee of .50% of the loan amount. This can be financed and at today's rates it won't increase your payment much. Also many lenders will not require an appraisal on the IRRRL and and a number of the closing costs the VA won't allow you to pay. Over all the closing costs on the VA IRRRL will be much lower and the rate should be as good or better than conventional. Additionally the VA loan is assumable. So if you get a 3.5% 30 year fixed today and in 10 years the market rate is 8%, you will will be able to offer below market financing. There are several other factors to consider in this scenario, like if you will take all or part of your equity on a note, but you will have more options to sell other than having a buyer obtain their own financing.

Mar 5th 2013
0
0
Barclay Butler (Barclay)
#83 ranked lender in Illinois - 76 contributions

The VA loan will be a lower interest rate. The Conv. refi will depend on equity in home. There could be mortgage insurance on a conv. loan but not on a VA loan. I would do a VA IRRRL. Barclay Butler 224-420-9990, bbutler@barclaybutlerfinancial.com

Mar 5th 2013
0
0
Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

VA/IRRRL may be easier and faster, and avoid mortgage insurance.

Mar 5th 2013
0
0
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

The advantage would be no up front funding fee.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 5th 2013
0
0
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

Equity is the real issue. If you have enough equity to obtain a conventional loan, there would be no reason to pay the funding fee on a VA. If you have very little or no equity, then VA/IRRRL would probably be the way to go. Conventional loans would require at least 5% equity, but would come with mortgage insurance. You would have to weigh the two options. Perhaps even an FHA?

Mar 5th 2013
0
0
Subscribe to our news feed.