Refinance Comparison Chart

	Regular Cash-Out	IRRRL Rate Reduction
*Statutory Authority*	38 USC 3710(a)(5)	38 USC 3710(a)(8)
*Entitlement Required*	Yes	No
*Cash to Veteran*	Yes	No
*Loan Limit*	90% of NOV plus funding fee (with certain exceptions) (80% in Texas)	VA loan balance plus allowable closing costs and funding fee (plus up to $6,000 for energy efficient improvements)
*Must Veteran Own Property*	Yes	Yes
*Must Veteran Occupy Property*	Yes	No, (must have once occupied)
*Maximum Loan Term*	30 years + 32 days	Existing VA loan term plus 10 years not to exceed 30 years and 32 days
*Maximum Interest*	Negotiated Rate	Rate must be lower than rate on present VA loan (unless refinancing ARM to fixed rate)
*Lien of Record Required*	Yes	Yes
*OK to Refinance Other Liens*	Yes	No
*Appraisal Required*	Yes	No
*Credit Package Required*	Yes	No, (Unless delinquent)
*OK for Automatic Processing*	Yes, Automatic lenders	Yes, all lenders unless existing VA loan is delinquent