VA Cash Out Refinance Loans
Veterans sometimes require additional cash now, for a real need. Perhaps you need to pay college tuition for your children, or perhaps it’s time to make necessary home improvements that will increase the value of your home prior to placing it on the market for sale. In cases like these and more, a Veteran’s home could be looked upon a source of equity which you can borrow against – if the terms, conditions and timing are right.
This might be a very good time to consider the many options available for refinancing your VA Home Loan.
VA refinancing involves repayment of your current real estate debt from the proceeds of your new VA mortgage, with the same borrower(s) and the same property. This is called a “Cash Out” Refinance.
Cash-Out Refinancing is available for homes that are used as your principal residence. A veteran-owner can refinance up to 90% of the appraised value (not available in Texas) plus the funding fee and the cost of any energy efficient improvements up to $6,000 if the property can withstand the designated loan to value ratio.
CASH OUT REFINANCE FACTS
• There is not any minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for VA Refinancing. You cannot be upside down.
• A cash-out loan may be made to refinance the outstanding balance of an existing mortgage, but can also include other debts (however, the first mortgage must be included in the refinance).
• The veteran can receive cash proceeds from the loan for any purpose acceptable to the lender.
• Existing mortgage loans or other liens of record may be refinanced whether they are in a current or delinquent status, but refinancing loans are subject to the same income and credit requirements as regular home loans.
Always consider the options carefully before entering into any financial obligation.