USAA is an organization dedicated to helping veterans and military families take advantage of well-deserved benefits. Since they specifically target veterans they typically have dealt with the common concerns and questions with VA home loans. However, USAA also brokers out there loans to qualified VA approved lenders. For veterans, it’s a huge advantage to have a lender or broker that understands VA home loans and assist military families on a daily basis.
VA Streamline & Cash out
Veteran homeowners can refinance their existing VA home loan with USAA and any of their qualified brokers. A VA streamline loan is when a veteran already has a VA home loan and wants to refinance to a lower rate. The VA streamline is one of the easiest refinances on the market and does not require an appraisal like many other loans. If a veteran has an FHA or conventional loan and wants to refinance into a VA home loan they have to get a “cash out” refinance. A cash-out refinance is a little more complicated and does require an appraisal. However, the VA streamline is designed to help veteran homeowners take advantage of low-interest rates and save hundreds of dollars every month. With interest rates at an all-time low, veterans can refinance their existing VA loan at 3.75% for a fixed 30-year loan. The 3.75% rate will not cost the veteran any additional costs and they will not have to buy down the rate.
Approved USAA brokers are generally extremely qualified to help military families and understand the VA home industry. USAA provides thousands of home loans nationwide to military families. Many of the USAA brokers offer cheaper interest rates than going directly through their services. USAA offers “wholesale” or “tier 1” rates to brokers closing plenty of loans. The “wholesale” rates can be lower than the “retail” rates you will be offered going directly with USAA.
Many veteran homeowners assume that home loan brokers will charge more closing costs and have higher interest rates. This is false. On the contrary, many brokers actually offer lower interest rates than lenders and no additional closing costs. It makes sense for USAA to offer an incentive to a broker that can potential close thousands of loans and potentially make USAA a lot of cash.
VA Home Loan vs. Conventional Loan
Many lenders may try to steer veterans away from VA home loans, but do not be swayed. The VA loan is the best loan on the market right now and veteran’s homeowners are missing out on great benefits by looking into other loans.
Here are some of the advantages of VA Home Loans:
- No Appraisal on a refinance
- Minimal credit requirements to refinance
- On average, VA loan interest rates are about 0.5% lower than conventional
- Only loan on the market to offer 100% financing
- Easier to get approved for a VA loan than conventional
- No PMI
- Government backed and Guaranteed by the GI Bill
These are just a few of the benefits of going with a VA home loan over an FHA or conventional loan. If veterans come across a broker or lender that is trying to convince them otherwise, they would be wise to move onto another company.
Research Your Situation
Refinancing your loan is not always the best option for veteran homeowners. There are many factors to take into consideration when deciding to streamline your current VA loan. If veterans are unsure about their situation, please contact a VA loan officer at LowVARates.com or go to our live chat for further assistance.
As always veterans, make sure to check VA streamline rates through USAA, LowVARates.com and other brokers and lenders to see which can offer you the best streamline refinance for your situation.