Va loan refinancing wife wants to refinance?

Herbert
A wife and husband own a home bought with a VA loan through the husband's military service. They are divorcing...the wife wants to get her own loan to refinance the house (they both co-own it). She is being told that there would be fees to pay because it is specifically a VA loan, which add up to almost $20, 000. Is it possible for a non-veteran spouse to refinance a VA loan with an FHA loan?

Caitlyn
You can do this but you need to find out WHY the lender is telling you it will cost 20K. My guess is they are setting you up with excuses to justify the costs by saying it's because you are going from a VA loan to an FHA loan. The only reasonable explanation is if you do not have enough equity to cover the closing costs plus what FHA requires for your loan to value ( FHA refinance limits you to 97% of the appraised value)

Chong
possible to do so but there will be fees involved since she is not entitled to VA financing. Now $20, 000 none of us knows all the details so we have no idea as to how much it would be. She can finance rate ant term up to 97% of the current value with no cash in hand