If the Streamline IRRRL doesn’t work for your VA loan refinancing needs the other option is the VA Cash Out refinancing loan. The VA Cash Out refinance loan gives qualified veterans the opportunity to refinance their conventional or VA loan into a lower rate while extracting cash from the home’s equity. This cash can be used toward a number of things and it makes this type of VA refinancing extremely popular.
Don’t confuse this with a home equity loan, which is a second loan that runs alongside your current loan. The VA Cash-Out refinance loan replaces your existing mortgage instead of complementing it, making it an even bigger draw for those looking to refinance with a VA loan program. Homeowners who qualify can refinance up to 100 percent of their home’s value for mortgage debt in some cases. In other cases homeowners can refinance up to a lower percentage and use the cash to cover debt payments and other needs (more on that below),
VA Cash Out refinancing is available no matter what type of loan you are carrying. That means whether you have conventional, FHA or USDA loan, the Cash-Out refinance option is available to you. Most homeowners choose VA Cash-Out refinancing over other types of loans because of the ability to repay the loan over a longer period of time The Cash-Out refinance option also comes with a lower interest rate.
VA Cash Out Refinancing Facts
- If you are refinancing from a conventional or other mortgage program, you are not required to take any cash out.
- Cash-Out Refinance loans follow the standard VA Loan underwriting and credit process.
- The closing costs and funding fee can be rolled into the entire loan amount.
- You must certify that you intend to occupy the property being refinanced.
*Please Note: Texas residents are not eligible for Cash Out refinances due to state regulations.
How You Can Use Your Cash
Again, the VA Cash Out refinancing loan is attractive because of the low rate as well as because you have the ability to take out cash from the equity in your home and use it for other things. Here are a few of the things you can use that available cash for:
- Major Home Repairs
- Emergency Expenses
- Kitchen Upgrades
- Bathroom Remodels
- Tuition & Books
- Pay Off Debt
- And More…
Ready to get started? Or maybe you are interested in an IRRRL Refinancing option?