VA Mortgage Refinancing for Those with Bad Credit

Finding a VA Mortgage LenderAny service member, veteran or surviving spouse is eligible for a VA mortgage refinancing for those with bad credit. Yes, you are eligible even if you have bad credit; just prove armed services affiliation. Your first step is to find a lender that has had experience in setting up and providing VA mortgage refinancing for those with bad credit.You may want to talk to other veterans, service members and their spouses to find which lenders they have used successfully. You could also speak with folks at various veterans organizations such as Veterans of Foreign Wars or Disabled American Veterans. Before you approach you a lender, you need to thoroughly understand what a VA mortgage refinancing involves.Understanding VA Mortgage RefinancingThe aim of most any refinancing is to lower monthly payments and reduce interest rates. A VA mortgage refinancing will take an existing VA loan and refinance it at a lower interest rate and that should include the lowering of monthly payments. If you have bad credit, a few more restrictions may apply, but refinancing is still available. Perhaps the biggest hurdle is proving your veteran or service member status. A valid military identification card or a DD-214 form should suffice.Of course, in a VA mortgage refinancing, service status has already been validated and need not be validated again. Usually no income verification is required, nor is a credit check. VA mortgage refinancing for those with bad credit does not usually require any out-of-pocket money. To understand the finer points, you may want to consult an experienced mortgage professional.Lower Interest Rates and Lower Monthly PaymentsIf you have bad credit, having lower monthly payments would allow you to devote the extra cash to catching up on other bills and attacking your poor credit problems more directly. Paying off debts and catching up on past due bills can go a long way to fixing up your credit history. Sometimes it is just nice to have a little extra cash every once in a while.Since the housing bubble burst in 2008, home loan rates have fallen to historic lows. It would be a shame to let bad credit get in the way of taking advantage of these record interest rates. VA mortgage refinancing for those with bad credit is an almost sure-fire way to refinance that 8 or 9% mortgage down to 4 or 5%. Savings on your home will mount into the thousands.Consider the Cash-Out OptionIf you are going after a VA mortgage refinancing, you might want to consider what is called the Cash-Out Refinance. The refinancing allows you to cash out the equity in your home, up to 90% of the value of the property. You can use this money for home improvement, investing, a new car, or maybe even a much-needed and long vacation. If you are a service member or veteran and hold a conventional loan, you can still opt for VA mortgage refinancing for those with bad credit. The process is a little more complicated but that option is available; take advantage of it. There may be some initial fees and other costs, but they will be few. You might want to also check into the VA Streamline Refinancing. This process is speedy and requires very little paperwork. Again you may want to talk to a mortgage professional experienced in VA mortgage refinancing for those with bad credit.