VA Debt Consolidation Loans & Military Debt Consolidation

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.

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.