VA Cash Out Refinance
The VA’s Cash Out Refinance gives veterans an opportunity to turn the equity in their home into cash. Qualified VA homeowners are allowed to finance all the way up to 100% of their property valuation. VA’s Cash Out Refinance is for veteran homeowners who want to take care of concerns like paying off debts, credit cards, student loans or making home improvements.
For example, if a borrower applies for the VA Cash Out Refinance program and the appraised value is $400,000. The maximum loan amount is 100 percent of the appraised value, so it’s $400,000. If the existing VA loan balance is $300,000 and closing costs are $5,000, then maximum cash back to the borrower would be $400,000 – $305,000 = $95,000.
VA Cash Out Refinance Quick Facts:
- Texas residents are not eligible for cash out refinances (state regulation)
- 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.
Is this a good option for me?
When considering a VA cash out refinance loan, make sure that this program is providing a true benefit to you. Don’t forget that VA home loans require a funding fee and it can be as high as 3.15% of the loan amount. This cost will take away from the net proceeds. The equity you’re taking out must be somewhat significant for it to make sense to do.
To speak with a VA loan benefits specialist, call the number above or fill out the short form and a specialist will contact you.