Best VA Refinance Mortgage Lenders

Benzinga has chosen Angel Oak as the premier choice for VA mortgage refinances.

You’ve served our country, and you deserve the best. The Department of Veterans Affairs distributes benefits to veterans and their dependents, and if you’ve served, you’re eligible for special financial programs — including VA loans.

Refinancing a loan can be the best decision — a VA refinance loan can help you lower your mortgage interest rate or take out some much-needed cash. Benzinga’s done the work to boil down the VA refinance process and recommend mortgage lenders to help you start weighing your options. 

Quick Look: Best VA Refinance Mortgage Lenders

• Best for Bank Statement Loans: Angel Oak Mortgage Solutions
• Best for a Variety of Options: New American Funding
• Best for IRRRL: USAA
• Best for Credit Union Service: Navy Federal Credit Union
• Best for Education: Veterans First Mortgage

Top VA Refinance Mortgage Lenders 

To find the best rate and terms, contact multiple lenders. Here are Benzinga’s best refinance mortgage companies for veterans and current service members. 

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio non-QM mortgage loans. Angel Oak is licensed in 45 states and offers competitive mortgage rates and quick closing times. 

Angel Oak offers a wide range of mortgage solutions for various needs. Whether you want to purchase a home, cash-out on your current property, or refinance at a different rate, they have options for you.

With loan amounts available up to $3.5 million, they can support you in financing properties of different values. They cater to primary residences, second homes, and investment properties, and accommodate various types of properties such as single-family homes, townhomes, and condos.

As an added convenience, the company offers options for self-employed borrowers and real estate investors who may not have tax returns readily available. They also provide opportunities for those with 1099 income and offer government loan products like FHA, USDA, and VA loans.

With competitive rates on conventional purchase and refinance, Angel Oak Mortgage Solutions ensures that you have options to suit your financial goals.

2. Best for a Variety of Options: New American Funding

New American Funding offers conventional, proprietary and government-backed mortgages. Its variety of mortgage options make it worth checking out, especially if you have unique financial needs. It also offers options for refinancing and tapping into your home equity. Its loan products aren’t available to New York or Hawaii residents.

New American Funding is also an excellent lender for first-time home buyers. You can opt for an FHA, USDA or VA loan. New American Funding also has educational resources to help you understand the mortgage process. 

The VA loans provided by the bank allow veterans and active service members to achieve home ownership, but the lender is large enough that you can take advantage of other options like cashing out for a refinance, obtaining an energy efficient loan or even a Native American Direct loan. The bank abides by all regulations regarding VA loans, including the certificate of eligibility, good credit and sufficient income.

3. Best for IRRRL: USAA

USAA is a financial services organization that exclusively serves members and families of the armed forces. It has a reputation for excellent service, and USAA offers IRRRLs with no origination fee. It also covers the appraisal, title and VA funding fee, which lowers your closing costs.

You can view USAA’s IRRRL interest rates on its website, making it easy to comparison shop. USAA doesn’t have an online mortgage option, so you’ll need to call for more information. 

4. Best for Credit Union Service: Navy Federal Credit Union

Navy Federal Credit Union has more than 8 million members, and it’s been serving members of the armed forces and their families since 1933. It offers VA cash-out refinances, IRRRLs, FHA refinances and more.

Navy Federal Credit Union offers outstanding customer service with representatives available around the clock. 

5. Best for Education: Veterans First Mortgage

Veterans First Mortgage trains its employees to serve the unique needs of military families. Its loan officers work closely with you to make sure you are satisfied with your refinancing process. Veterans First has served more than 175,000 veteran families over 30 years and has an A+ rating from the Better Business Bureau. 

VA Streamline (IRRRL) Refinance

The Department of Veterans Affairs oversees all VA loan programs, including its refinance program. Private lenders provide VA loans, and the loans have to comply with VA rules.  

Refinancing is when you replace your current home loan with a new home loan. You should only consider refinancing if the new mortgage puts you in a better financial position. 

One of the VA’s options for refinancing is called the interest rate reduction refinance loan or IRRRL. This type of mortgage improves your financial position when it replaces your current loan with one that has better terms. 

Here are a few of the benefits of an IRRRL:

• No appraisal needed
• The ability to roll closing costs into the new mortgage
• You can choose from any IRRRL lender

You may switch to an IRRRL to secure a lower interest rate or transition from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. An adjustable-rate mortgage has an interest rate that can increase over time, while a fixed-rate mortgage maintains the same interest rate. 

Cash-Out Refinance

Another option to refinance mortgage loans is a VA-backed cash-out refinance loan. A cash-out refinance loan allows you to replace your current home loan with a new one and take cash out of your home equity. The cash could help you pay off debt, improve your home, pay for school — anything you might need. 

You can use a VA cash-out refinance loan to refinance VA loans and non-VA loans. The amount you can take out in cash depends on the equity you’ve built up in your home. Equity is the difference between how much you owe on your home and how much your home is worth. Let’s say your home is worth $200,000, and you owe $125,000 on your mortgage. In this case, you have $75,000 in equity ($200,000 - $125,000 = $75,000). Your lender can help you determine how much cash you can pull from your equity. 

VA Refinance Eligibility

A VA-approved lender is the best place to refinance your mortgage, but which loan options are best? Your best choice depends on your eligibility — check out the requirements for each refinancing option.

IRRRL Eligibility

To qualify for an IRRRL, you must:

• Have a VA home loan
• Currently live in the home or have previously lived in the home you are refinancing
• Provide the Certificate of Eligibility (COE) used to originally purchase the home
• If you have a second mortgage, the lender must agree to stay in the second position

You may have to pay a funding fee, but you could roll the fee into your new mortgage. 

Cash-Out Refinance Eligibility

To qualify for a VA-approved cash-out refinance loan, you must:

• Live in the home you’re planning to refinance
• Qualify for a COE
• Meet your lender’s credit and income requirements

The VA provides a COE based on your service history. If you’re active duty, you need to have served for at least 90 continuous days. If you’re a veteran, the service requirements vary upon when and where you served. 

For example, if you served in Vietnam between February 28, 1961 to May 7, 1975, you need to have served for 90 total days. It may be less if you were discharged due to a service-related disability. 

If you served between August 2, 1990 and the present, you must have served for 24 continuous months or the full period you were called for active duty. Again, it may be less if you were discharged due to a service-related disability, a hardship or a reduction in force. 

The best way to determine eligibility is to apply online via the eBenefits portal. 

Choosing a Lender

Choosing the right VA lender is essential. Steer clear of lenders that use high-pressure sales tactics or promise thousands of dollars in cash back. The VA warns that if an offer seems too good to be true, it probably is. 

Look for a lender with a long track record of success with VA loans. IRRRLs have minimal paperwork, but closing is still a process. Cash-out refinances are more involved. In addition to providing your COE, you’ll also need to provide financial information such as:

• Your pay stubs from the past month
• W-2s from the past 2 years
• Your tax returns from the past 1 or 2 years

Your lender will also order an appraisal, which determines the value of your home. 

Regardless of which loan you choose, it’s important to review your terms carefully. Keep interest rates, closing costs and the service you need along the way in mind before you make your final choice. 

Frequently Asked Questions