VA Debt Consolidation Loans

Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high-interest credit cards, debt can happen to anyone including veterans and military personnel. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help. 

Using the VA home loan program for debt consolidation is designed to help alleviate some of these financial burdens and give veterans and military families a better option for paying off their debt faster and easier.

When determining your eligibility for a military debt consolidation loan, lenders will consider your credit report, your income and debts, the equity in your home, and your VA loan repayment history. If you have questions about how a VA debt consolidation loan could work for you, call HomePromise at 800-720-0250. Their experts will answer your questions, review your credit score, and provide you with a free quote. 

VA Military Debt Consolidation

Military debt consolidation loans work similarly to cash-out refinances. If you own a home, you are able to refinance that loan for a higher amount to cover the debt. Upon closing, that additional money is pulled out and given to you. You then have paid off personal debt with higher monthly payments. The amount of debt you can pay off depends on several factors including how much home equity you have.

“Our situation was a little unique and challenging but HomePromise made it happen.” – Tonya H.

Note that you don’t have to have an existing VA loan presently to qualify.

For example, if your current home loan balance is $150,000 and you need $20,000 to cover existing debt from credit cards, delinquent taxes, or college tuition payments, your loan would be refinanced to $170,000 plus any financed closing costs. You would receive the $20,000 and your new mortgage payment would reflect the new loan amount of $170,000 plus financed closing costs. You can use these kinds of loans to pay off any type of debt or personal loan.

The benefits of a VA debt consolidation loan may include reducing your interest rate, having longer repayment plans or terms, decreasing your overall non-mortgage debt and having fewer monthly payments. Military debt consolidation loans also provide more options for veterans and military families with low credit scores and high debt-to-income ratios.

Some veterans may choose a debt management program but finding out if you qualify for a VA cash-out refinance VA debt consolidation loan may be a better option.  Always remember that if you’re struggling with your debts, you have special rights if you’re presently on active duty through the Military Lending Act and the Servicemembers Civil Relief Act.

VA Loans to Pay off a Second Mortgage

If you have a second mortgage or home equity line of credit and are looking to pay off that loan, a VA debt consolidation loan could be a helpful option for you. With a military debt consolidation loan, you can pay off your second mortgage, and many times receive a more competitive interest rate and consolidate your monthly payments into one easy payment. 

If you’re considering a VA debt consolidation loan and want to discuss your options, call HomePromise at 800-720-0250 to receive a free quote from one of our VA home loan experts. 

VA Loans to Pay off Credit Cards

There is hope for those experiencing financial difficulties due to growing credit card debt: VA debt consolidation loans can help alleviate this financial burden. Veterans and military families who own a home as a primary residence are eligible to take out up to 100% of their home’s equity with HomePromise to help pay off credit card debt. The money you receive from refinancing your existing home loan would pay off your credit cards and leave you with an updated mortgage payment to reflect the higher loan amount.

It is important to note that many VA lenders limit you to 90% of the value of your home when taking out a new loan to get cash out of your home.  This is not required by the VA home loan program and a few lenders will let you go all the way up to 100% of the value of your home. HomePromise is one of those lenders so call the HomePromise VA loan experts at 800-720-0250 to apply for a 100% cash-out refinance VA home loan. 

Paying off your credit card debt and having it rolled into one easy mortgage payment shortens the amount of time it will take you to pay off your debt. It will reduce your interest rate and decreases your overall non-mortgage debt amount. 

It also eliminates the never-ending credit card bills with their high credit card interest rates and the harassing calls from credit card companies.

Credit card debt is considered unsecured debt. When you take out a VA debt consolidation loan to pay off your credit card debt, that debt is now considered secured debt. The debt is now called secured debt because your home is acting as collateral for your loan. Just like any VA home loan, there is a risk of foreclosure if you don’t pay your mortgage. 

Military debt consolidation loans are a great option for veterans and their families because these loans offer more competitive interest rates than high-interest credit cards and closing cost caps compared to other mortgage loan types. Applying for a VA debt consolidation loan to pay off your credit cards may also improve your credit score in some cases. Contact HomePromise at 800-720-0250 to receive your free quote today.

VA Loans to Pay off Delinquent Taxes

If you’re behind on your income or property tax payments, you could be facing fines, high-interest rates on your debt, and potentially garnishing or placing a levy on your wages. Taking out a VA debt consolidation loan may allow you to quickly pay off your delinquent taxes and consolidate your monthly payments into one simple payment.

Some VA lenders will deny your loan if you are behind on your taxes.  HomePromise is different, many times we may be able to approve your VA loan even with unpaid state, federal, or real estate taxes.  Call HomePromise at 800-720-0250 to see if you qualify for a VA debt consolidation loan today.

VA Cash Out Refinances to Pay for College

It’s no secret that paying for college tuition is expensive. Whether you’re paying for your children to go to college or you’re going to college yourself, it’s an expensive undertaking. A VA debt consolidation loan could help alleviate some of the financial burden associated with furthering your education or that of your children.

Using a VA cash-out refinance to pay for college may be a great option to lower the interest rate on your student debt with a low-rate VA mortgage.  This kind of VA loan option may provide you with a significant amount of money to put toward tuition or pay off student loans while maintaining one monthly payment with a low-interest rate.

Get a Free Quote for a VA Debt Consolidation Loan

When faced with the burden of paying off a second mortgage, credit card debt, college tuition, or delinquent taxes, you need to work with a trustworthy lender who has competitive interest rates. HomePromise is a lender approved by the U.S. Department of Veteran Affairs to provide VA loans. We have some of the lowest loan origination fees in the country, and we provide veterans and military families with convenient ways to apply.  If you served or currently serve in the armed forces give us a call.

Whether online or over the phone, HomePromise will handle all of your VA home loan and VA debt consolidation loan questions with compassion and care. We will review your credit history along with your unique circumstances and provide you with a free quote if you qualify. If you’re having difficulty getting your Certificate of Eligibility (COE) on the Department of Defense website, we can help you get it.  Call HomePromise at 800-720-0250 to learn what options may be available to military service members and veterans for VA debt consolidation loans.

What Qualifies for VA Funding Fee Exemptions?

We are often asked who is exempt from paying the VA funding fee at closing. At HomePromise, our VA home loan experts are standing by to answer your questions and help guide you as you make these important financial decisions. In this article, we will look at what Qualifies for VA Funding Fee Exemptions.

What is the VA Funding Fee?

The VA funding fee is an additional cost that service members, veterans, or surviving spouses must pay when obtaining a VA loan. The funding fee helps cover the losses from other defaulted VA loans made to military members and veterans who stop making their mortgage payments. It keeps the VA loan program healthy and makes sure this program is still available for veterans and their families for years to come. 

“I would absolutely recommend HomePromise to anyone in need of a lender!” – Amy G.

The History of the VA Home Loan Program

The Servicemen’s Readjustment Act, most commonly referred to as the GI Bill of Rights, was passed in 1944. The GI Bill of Rights included the VA home loan program. This piece of legislation was signed into law by Franklin D. Roosevelt with the goal of reshaping the American economy by creating a level playing field for veterans of World War II. Helping make home loans more accessible through the VA home loan benefits program was a major part of accomplishing this goal. 

There have been many updates to the laws and rules surrounding VA loans since the program began. Some increased the buying power and capabilities of veterans using the VA loan program, while others provided more regulation to make sure this program remains available for future generations.

HomePromise understands the long history of the VA home loan program and the important role it plays in helping veterans and their families buy homes. Whether you have questions about funding fee rates, discount points, the benefit of qualifying by receiving VA compensation, or any other VA mortgage questions, we’re here to help.

What Qualifies for VA Funding Fee Exemptions?

VA Funding Fee Exemptions for Disabled Veterans and Surviving Spouses

Disabled veterans are exempt from the VA funding fee. If you are currently receiving compensation for a  service-connected disability, you can waive the VA funding fee regardless of your level of disability. Surviving spouses of veterans who passed away in action and active-duty military service members who have received a Purple Heart are also exempt from paying the VA funding fee.

Here is a detailed list of qualifications for exemption from the VA funding fee: What Qualifies for VA Funding Fee Exemptions?

How Much is the VA Funding Fee? 

Being exempt from the VA funding fee can help disabled veterans and surviving spouses save thousands of dollars in out-of-pocket fees when purchasing a home or refinancing their current one. If you closed on your loan before you started receiving your disability benefits, you may be able to have your VA funding fee refunded back to you. However, you must receive your disability benefits approval within a short time after closing on your VA loan. 

The cost of the VA funding fee is based on your total loan amount, not the purchase price of your home. It varies based on the size of the down payment and if this is your first time using the VA loan program. Return users of the VA loan program pay a higher VA funding fee compared to buyers who are using the VA loan program for the first time.

Below is a chart detailing how mortgage lenders calculate the VA funding fee: What Qualifies for VA Funding Fee Exemptions?

These percentages have a big impact on out-of-pocket costs at closing if you are not exempt from the VA funding fee. Below are a few examples of how much the VA funding fee can cost people based on their total loan amount: What Qualifies for VA Funding Fee Exemptions?

As a VA borrower, if you have questions about your exemption from the VA funding fee, call HomePromise to speak with one of our VA home loan experts at 800-720-0250. They will review your credit score, income sources, and credit history before providing you with a free quote. 

How Does the VA Funding Fee Work with a Cash-Out Refinance?

A cash-out refinance helps you take full advantage of the equity you’ve built in your home. At loan closing, you receive funds to use for various purposes.  Perhaps you are looking to refinance your home with the goal of pulling cash out to pay off existing liens, renovate your home, or cover other expenses. Below is a chart showing the VA funding fees for cash-out refinances:

This means that if you are refinancing to the below total loan amounts, the VA funding fees would be: 

Being able to waive the VA funding fee offers those who are exempt significant cost savings when doing a cash-out refinance. To learn more about a cash-out refinance for your home, call HomePromise at 800-720-0250.

Other VA Loan Benefits Available to Disabled Veterans

In addition to being exempt from paying the VA funding fee, disabled veterans may also be eligible for special housing grants, real estate property tax exemptions, and disability compensation benefits for veteran income. These benefits are in addition to the benefits already available to veterans, military service members, and surviving spouses when applying for VA loans, including options for lower credit scores, limits on closing costs, competitive interest rates, and no private mortgage insurance. Call our VA lending experts at 800-720-0250 for more information.

How Your Credit Score Impacts Your VA Home Loan Eligibility

The Department of Veterans Affairs has no minimum credit score requirements when applying for a VA home loan. Instead, the Department of Veterans Affairs requires mortgage lenders to review the overall credit history, sources of income, and credit score of the person when determining their eligibility for a VA loan.  The HomePromise minimum credit score for VA loans is 580.

In general, having a higher credit score typically means you will receive a lower interest rate. Having a higher credit score means you are less of a credit risk for mortgage lenders, which is why they reward you with a higher rate.

To further understand how your credit score impacts your VA home loan eligibility, call our HomePromise VA loan experts at 800-720-0250. Our professionals will review your credit score and provide you with a free quote.

Talk to a HomePromise VA Loan Expert

HomePromise is a knowledgeable and compassionate lender approved by the Department of Veterans Affairs to provide VA home loans. We provide convenient options for applying for VA home loans, including online and over the phone.  If you have questions about how to get a Certificate of Eligibility (COE) or how to qualify for a VA streamline refinance (IRRRL) please give us a call.

Learn more about how your exemption from the VA funding fee can save you thousands of dollars at closing by calling our HomePromise VA loan experts at 800-720-0250!

National Guard VA Loan Requirements

The VA home loan program offers veterans, active service members, and surviving spouses with many useful benefits that can help save them thousands of dollars in closing costs and throughout the life of their loan. What some National Guard members might not know is that they are also eligible to receive these benefits provided through the VA loan program as long as they meet specific service requirements. 

If you’re a National Guard member looking to explore your VA home loan options, call HomePromise at 800-720-0250! Our mortgage experts will listen to your unique circumstances, answer any questions you might have about the lending process, and provide you with a free interest rate quote.   VA loans for National Guard members can be complicated so give us a call today for help.

Army National Guard VA Loan Eligibility

At HomePromise, our mortgage experts are often asked if National Guard members are also eligible for VA loans. The answer is yes, as long as the National Guard member meets qualifying loan requirements and also meets the service requirements that are set forth by the Department of Veterans Affairs. You earned your home loan benefits through your national guard service.

“The whole process was great!” – Michael W.

In order to apply for a VA home loan as a member of the National Guard, you must have completed at least 6 years of service, been honorably discharged for a service-related disability, or completed at least 90 consecutive days of active duty service.  The service requirements National Guard members must meet in order to be eligible for the VA home loan program are detailed in the below chart.

One of the key features of the VA home loan benefit is that you qualify as a National Guard member if you serve at least 90 days of active duty service.  There are also some complicated VA rules regarding the selected reserve and title 32 orders that may help you qualify.  If you did serve in the selected reserve or you were subject to title 32 orders, please call and we will help you see if you qualify.  

Competitive Origination Fees for National Guard VA Loans

When applying for a VA home loan as a National Guard member, it’s important to understand the different options available to you. In addition to our flexible, knowledgeable, and compassionate services, HomePromise proudly offers National Guard members a highly competitive loan origination fee. No matter the total loan amount or the type of loan, our HomePromise VA loan origination fee is $590.

Call HomePromise at 800-720-0250 to speak with our mortgage professionals about receiving a free quote and conveniently applying for a VA home loan. 

We want National Guard members to have a full understanding of the significant impact loan origination fees can have on the money due at closing. Knowing what’s a reasonable loan origination fee to pay can help save you money when purchasing your home. Some lenders charge as much as 0.5%-1% of the total loan amount (1% of a 300,000 loan amount is $3,000), and many lenders charge more than $1,000 for loan origination fees. 

While it might be tempting to work with a lender who doesn’t charge any loan origination fees, the lender will most likely make you pay for it in other ways. Lenders who do not charge origination fees will typically give you a higher interest rate in order to make up for not charging you a loan origination fee or you will pay higher fees that go by other names like an application fee, commitment fee, underwriting fee or the like.

So, even though you’re not paying a loan origination fee at closing, you may end up paying other high fees or be paying more over the life of your loan due to your higher interest rate. It might feel uncomfortable to pay more money at closing, but it may save you a significant amount of money in the long run to have a lower interest rate.

Active Duty National Guard VA Loan Benefits

The VA loan program provides a variety of benefits for eligible National Guard members. These benefits help veterans increase their buying power when searching for a home and enable them to save thousands of dollars over the life of their loan. The benefits of the VA loan program are available to eligible National Guard members for life. 

The cost-saving benefits of the VA home loan program include competitive interest rates, no monthly private mortgage insurance, and no required down payments. Other helpful benefits include options for people with lower credit scores and limits on the amount of closing costs. 

Not needing a down payment when purchasing your home can help you keep several years of savings in your pocket. Down payments typically range from 3.5% up to 5%, which means National Guard members can save thousands of dollars by not needing a down payment when purchasing a home. 

Another important benefit of the VA home loan program are the options it provides for National Guard members with lower credit scores. If you have a lower credit score, you’re more likely to receive a higher interest rate or you might even be denied when applying for a mortgage through conventional routes.

Through the VA home loan program, National Guard members with poor or fair credit scores may still qualify for a mortgage and receive a competitive interest rate. This provides you with significant cost savings over the life of your loan. 

To learn more about how the VA loan program saves National Guard members money, call HomePromise at 800-720-0250! We listen to the unique circumstances of each National Guard member before determining their eligibility and providing them with a free quote.  We will answer your questions about qualifying for VA home loan benefits.

Are National Guard Members Exempt from the VA Funding Fee? 

While there are a variety of cost-saving benefits available through the VA home loan program, National Guard members are not exempt from paying the VA funding fee unless you have a service connected disability. How much you will have to pay for the VA funding fee depends on your total loan amount, whether you’ve used the VA loan program before, and your down payment. 

National Guard members do have the option to reduce the amount they have to pay for the VA funding fee by having a down payment of at least 5%. If you’re using the VA loan program for the first time, your VA funding fee is lower than if you were a return user. The VA funding fee equals 2.3% of your total VA home loan amount. If you’ve previously obtained a VA home loan, your funding fee amount is 3.6% of the total loan amount. 

Let HomePromise Help You Determine Your Eligibility for the VA Home Loan Program

HomePromise provides veterans, active duty service members, and their families with knowledgeable guidance, friendly customer service, and flexible options when applying for a VA home loan. You have the option to apply over the phone or online based on which method is most convenient for you.

We will help you get your certificate of eligibility (COE) since we have direct access to the VA website that issues the certificates.  The COE will have your certificate of eligibility code showing you are an eligible National Guard member.

HomePromise is an approved lender with the U.S. Department of Veterans Affairs to provide VA home loans so you can access your home loan benefit and find out if you qualify for a VA loan. Call HomePromise at 800-720-0250 to receive a free quote and to learn more about how the VA home loan program can save you money!  If you submit your loan application today we may be able to close your VA loan in the next 30 days!

VA Home Improvement Loans

The VA home loan program was designed to make purchasing a home more accessible for active duty service members, veterans, and surviving spouses. The program offers money-saving benefits to those who qualify with the goal of making homeownership within reach for those who might not otherwise be able to access it. In this article, let’s look at some facts about VA Home Improvement Loans.

In addition to helpful benefits like no required down payment, no monthly mortgage insurance, and options for people with lower credit scores, the VA home loan program also allows you to renovate your existing home or purchase a fixer-upper and finance the cost of the renovations. These options are possible with a VA home improvement loan. 

There are multiple VA home improvement loan options for those who qualify through VA cash-out refinances. When looking to renovate your current home or purchase a fixer-upper as your next home, HomePromise can help you navigate these complex financial decisions. Call HomePromise at 800-720-0250 to receive a free quote that details your accessibility to a VA home improvement loan. 

“HomePromise has been amazing to work with!!” – Danna N.

100% VA Home Improvement Loans

When getting a VA home loan to purchase a home, sometimes the home has improvements that you’ll want to do after closing.  Maybe you want to upgrade your kitchen or bathrooms.  Maybe you want new carpets or a new roof.  All of these items may be possible through a VA cash-out refinance if your home has increased in value after closing.

Alternatively, you may have lived in your home for years and need an addition for larger family size or want to do upgrades, alterations, and repairs.  The VA cash-out refinance is the ideal way to get these home improvements done.  Instead, if you choose a home equity line of credit (often called a HELOC) you may experience some risk of big increases in mortgage rates because most HELOCs have adjustable rates.  Sometimes HELOC rates can rise above 20% so a fixed-rate VA cash-out loan is safer.

The key to doing VA cash-out refinances for home improvement is to make sure you work with one of the few lenders that allow for 100% cash-out refinances.  A VA cash-out refinance for most lenders is limited to 90% of the value of your home which limits the amount of work you can do to improve your home. 

At HomePromise, our maximum loan is 100% of the value of your home for a cash-out refinance.  Call our VA lending experts to find out if you qualify for a 100% cash-out refinance at 800-720-0250.

VA Cash Out Home Improvement Loan Requirements

In order to qualify for a VA cash-out refinance to do home improvements, service members must meet the standard VA home loan requirements for service and provide their Certificate of Eligibility. If you do not currently have your Certificate of Eligibility (COE), call HomePromise at 800-720-0250 to talk to a VA expert who can get your COE for you. 

The below chart details the service requirements that must be met in order to qualify for the VA home loan program: 

When applying for a VA home improvement loan, you must also meet the credit score requirements of your lender. The VA loan program does allow for options for veterans and active duty service members with lower credit scores, but credit score requirements do vary from lender to lender. If you’re wondering what your credit score is and the mortgage you maybe be able to obtain with it, call HomePromise at 800-720-0250 to speak with our mortgage experts. 

In addition to meeting the service requirements for the VA loan program and the credit requirements of your lender, the repairs to your home must also meet specific VA standards.  Your home can’t be dilapidated or need repairs that affect the health and safety of the home. Those repairs have to be completed before closing.  But you can draw cash out of the home at closing to pay contractors or pay off debts you may have accumulated by paying for needed repairs. 

Minimum property requirements must be met to qualify for a VA cash-out refinance.

Understanding Minimum Property Requirements

Minimum property requirements (MPRs) were put in place to protect the value of the home itself and the health and safety of the buyer by identifying immediate threats present in the home. MPRs ensure that the property is move-in ready and meets the basic living needs a home should provide. MPRs are designed to identify a variety of issues that could affect the safety of the home as well as its value.

The below chart lists some of the minimum property requirements as determined by the Department of Veterans Affairs: 

The above-listed minimum home requirements are the basic necessities a home should provide. Having these requirements before purchasing or refinancing a home protects veterans, active service members, and their families from the added stress of purchasing a non-functioning home. It also helps protect lenders and the VA home loan program as a whole so it remains healthy for many generations to come.

A VA cash-out refinance can work as a VA rehab loan if your home needs significant work to be done but the home must meet minimum property standards by the time you close on your loan.  The VA cash-out refinance can act as a home equity loan tapping the equity in your home with a new first mortgage for repairs and improvements.  Note that the home has to be your primary residence to qualify for a VA cash-out refinance for home improvements.

VA Home Appraisal

A VA home appraisal confirms that all of the minimum property requirements are present in the home. The VA home appraisal must be completed by a qualified, independent VA home appraiser. The VA home appraisal is a different service than the home inspection.  The appraiser is selected by the US Department of Veterans Affairs on each VA loan.

A home inspection is a thorough investigation of the home to help make buyers aware of any potential issues with the home. It’s a more in-depth review of the home that’s very important for protecting home buyers. A VA appraisal does not replace the need for a home inspection. 

Home Improvement Loans for Disabled Veterans

Disabled veterans who need to remodel their current homes in order to make them accessible for themselves are eligible for special housing grants that help cover the cost of these expensive renovations. 

There are a variety of benefits disabled veterans receive when obtaining a VA home loan. In addition to these benefits, disabled veterans may also qualify for specific grants that help cover the cost of making accessibility modifications to the home. There are two grants available for disabled veterans with a 100% service-connected disability rating from the VA: the Special Housing Adaptation (SHA) and the Specially Adapted Housing (SAH) grant. 

If you are a disabled veteran who does not qualify for either of these grants, a VA cash-out refinance might be a great option for helping cover the cost of accessibility renovations to your home. To learn more about your options, call HomePromise at 800-720-0250 for a free quote. We will take the time to understand your unique circumstances, listen to your needs, and answer any questions you might have

More Details About VA Cash Out Home Improvement Loans

With a VA cash-out refinance you can use the money for any purpose, like home improvements and renovations of your choosing. With a VA cash-out refinance, your maximum loan amount with most VA lenders is 90% of your home’s current value. But, at HomePromise we allow you to tap 100% of the value of your home as a veteran or active duty member.

A VA cash-out refinance works by tapping into the equity you’ve earned and built over time in your home. In order to be able to take advantage of a VA cash-out refinance, you must owe less money on your mortgage than what your home is worth. In other words, you can’t be “upside down” on your mortgage meaning that your mortgage can’t be more than the value of your home.

The money available to those who qualify for a VA cash-out refinance can be used for a variety of purposes. The Department of Veteran Affairs does not regulate or set rules on what the cashout money can be used for. The money from a VA cash-out refinance could be used to pay off high-interest credit card debt, finance a wedding, pay for college, or put an addition on your home. 

Discovering the untapped potential of the equity you’ve earned in your home can be exciting. As you’re choosing how to spend this money, keep in mind that the money you’re pulling out from your home’s equity will be refinanced into your mortgage. This means that you will be paying for it in the higher loan amount of your mortgage after the refinance is complete. 

Here is an example of the numbers behind a potential VA cash-out refinance scenario: 

Note that in the scenario above you have to pay the VA funding fee and any closing costs out of the $55,000 available through a cash-out refinance.  Lower closing costs help you keep as much of that $55,000 for yourself.

A great way to keep your closing costs low is through the HomePromise reduced origination fee of $590.  Many VA lenders charge 1% of the loan amount as an origination fee.  That would be $3,000 on a loan amount of $300,000.  HomePromise charges only $590 regardless of the loan amount.

Discuss Your VA Home Improvement Loan with HomePromise

HomePromise is an approved lender with the U.S. Department of Veterans Affairs for providing VA home loans. We proudly offer convenient methods for applying for VA home loans, including online and over the phone.

To learn more about the ways you can take advantage of your home’s equity, call HomePromise at 800-720-0250. As a VA-approved lender we will help you understand your options and provide you with a free interest-rate quote