Many of our clients have asked us what a Veterans Administration(VA) cash-out refinance is and how they can take advantage of it.
The VA has instituted this program to allow veterans to access the equity in their home. The proceeds from the refinance can be use for debt-consolidation, home improvements, college education for you or your children, etc. The VA will allow us to go up to 100% of the appraised value of the home when structuring a cash-out refinance.
The process is very similar to when you purchased your home using the VA Loan. The VA will require an appraisal on the property and income verification. The loan is still guaranteed by the VA and will function the same as your current loan. When you do a VA Loan – even if you cash-out up to 100% of the value of your home – your new loan will not have mortgage insurance which will continue to save you thousands of dollars a year over other loan programs.
With rates at historic lows, you may even lower your interest rate from your current VA Loan – depending on when you last purchase or refinanced. Contact us at 866-511-5054 to explore your VA Loan cash-out refinance options.