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Indigo Mortgage is now able to offer veterans the 100% refinance loan. This is another great loan program for veterans, but it is not offered by all lenders. The 100% refinance loan is available to veterans who want to pay off debt but cannot actually take cash in hand.

To clarify, here are some scenarios: if a veteran wishes to pay off a non-VA loan and convert it into a VA mortgage, this loan will allow 100% of the value to accommodate the refinance. In comparison, most VA lenders usually allow 90% of the appraised value and will not go up to 100%. In another scenario if the veteran has a first and a second mortgage and wants to combine them into a single mortgage, this VA loan will accommodate that up to 100% of the appraised value, again compared to only 90% from most lenders. And finally, If the veteran wants to consolidate debts such as high interest credit cards, installment loans, or any other consumer credit, this VA loan will allow it as long as there is no cash in hand back to the veteran, it must be used to pay off debts. This loan is also priced the same as a regular VA loan so there is no hit to the rate. The VA loan never has mortgage insurance, but is subject to the VA funding fee between 2.15 and 3.3% depending if the veteran has used their benefit in the past.

An appraisal is one of the requirements for 100% VA refinance eligibility, again no cash in hand back to the veteran is allowed, the veteran must credit qualify, they must have their eligibility intact, and a VA funding fee is charged unless the veteran has a disability of 10% or more.

Published in Blog