In response to my last blog, Linda Wilson asked, “Ok question: how do we start the VA loan process? will we have to do it as a refinance? because of the economic down turn our home has no equity so with the VA refinancing we can only get 90% so basically we will need a large amount down payment. Could someone please point us in the right direction it would be appreciated.”

The first thing someone needs to do is to contact a lender regarding the refinance options.  With a VA purchase, buyers are generally allowed to borrow 100% of the purchase price.  There are also some VA funding fees that are normally rolled into the payments as well.

I would expect that a VA refinance would be the same as a conventional loan refinance.  They would allow up to 100% of the equity of the property.  If you now have negative equity, you would probably not be able to refinance the full amount of your current loan.

I have some very good lenders that I work with and I would be happy to refer you.  Give me a call at 540/907-2727 or shoot me an email at  I would be happy to share their names and numbers.  In the meantime, any lenders who read this blog (like Mark), please feel free to chime in and give us the scoop.

See you at the Lake!