Government-Backed Refinancing Options That Fit You
Government-backed refinancing can be a flexible solution for managing monthly payments and accessing home equity. We break down your options below and how to know what’s right for you.
What Is Government-Backed Refinancing?
Flexible qualification requirements
Government-backed refinancing programs can accommodate most borrowers, including those with unique credit profiles, higher debt-to-income (DTI) ratios, and limited home equity.
Special features
VA, FHA, and USDA refinancing programs offer features and benefits to homeowners that may not be available through conventional programs.
Multiple pathways
Each agency offers different refinancing pathways that can be tailored to specific homeowner needs. Some provide a streamlined approach, while others are designed for specific types of borrowers.
What Can Government-Backed Mortgage Refinancing Be Used For?
To access more flexible loan terms
Government-backed refinancing is often easier to qualify for with flexible credit requirements and higher debt-to-income allowances.
To refinance an existing government-backed loan
If you have an FHA, VA, or USDA loan, refinancing within the same program can provide streamlined options with minimal paperwork.
To tap into your home equity
Government-backed cash-out refinancing lets borrowers use their home equity for renovations, medical costs, and other expenses.
Pros
- Streamlined rate-and-term options
- Faster refinancing with minimal paperwork
- No PMI required in some cases
- Most programs allow you to roll fees into the loan
Cons
- Property location or condition restrictions may apply
- Mostly limited to primary residences
Talk to our mortgage experts today about finding the right loan for you.
Types of Government-Backed Refinancing
- Multiple programs for borrowers to choose from
- May allow for quicker and easier closing
- Allows borrowers to get a new appraisal and LTV
- Excellent for cash-out refinancing
- Available to military service members, Veterans, and surviving spouses
- No appraisal with the VA Interest Rate Reduction Refinance Loan (IRRRL)
- The VA Guaranteed program offers a rate-and-term refinance with an appraisal
- Cash-out options are also available
- Designed for homeowners with an existing USDA loan
- Refinance without a credit check with the USDA Streamlined Assist program
- Borrow up to 100% of your property value with the USDA Rate-and-Term Refinance
How Do I Know If Government-Backed Refinancing Is Right for Me?
You need flexible credit requirements
If you’re still building your credit or have less equity in your home, government-backed mortgage refinancing could be easier to qualify for than a conventional alternative.
You have an existing government-backed loan
If you have an FHA, VA, or USDA loan, special refinancing programs offer streamlined options with less paperwork or cash-out opportunities for major expenses.
You want to change the terms of your loan
If your mortgage no longer fits your needs, government-backed refinancing can help adjust terms affordably, like switching from an adjustable to a fixed-rate loan through FHA, VA, or USDA programs.
When Is the Best Time to Refinance a Government-Backed Mortgage?
Get In Touch With A Loan Officer Today
FAQ
Do I need to be current on my existing mortgage to qualify for government-backed refinancing?
In most instances, being current and having a history of on time monthly payments is a requirement when refinancing a home. There may be some options for you if you have had some issues making your monthly payment in the past. Please contact us for more information.
Can I refinance a second home or an investment property with a government-backed program?
Yes, there are some instances where a second home or investment property can be refinanced with a government-backed loan. Please contact us for more information.
Can I refinance from a government-backed loan to another type of government-backed program?
Yes. Please talk to your mortgage professional for potential restrictions when choosing a new type of government-backed loan.
Can I roll closing costs into my new loan with government-backed refinancing?
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