The VA’s 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.
With the VA Cash-Out refinance, you have the opportunity to turn the equity in your home into cash. This shouldn’t be confused 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.
While it might sound odd, homeowners aren’t required to take out cash with these refinance loans. That means qualified veterans with non-VA loans can use this benefit to simply take advantage of lower rates, or to get out of an adjustable-rate loan, or to eliminate costly mortgage insurance with other loan types.
VA Cash-Out Facts
The process for getting a VA-Cash Out refinance is similar to the process for a https://paydayloansohio.net/cities/beavercreek/ typical VA purchase loan, including credit underwriting, an appraisal and more.
- VA lenders are often looking for a credit score of at least 620, but minimums can differ based on the lender, the loan amount and more.
- You must certify that you intend to occupy the property being refinanced.
- Homeowners can finance their closing costs as long as they can meet loan-to-value guidelines. Continue reading How long do you have to wait to get a VA Cash-Out refinance?