VA Cash Out Refinance
VA Cash Out Refinance
VA cash out refinancing programs with highest LTV.
Veterans are entitled to the best cash out refinance loan available in the entire mortgage marketplace. This includes the option to cash out up to 100% of your equity. This is a substantial perk considering non-veterans are only eligible to cash out to a max LTV of 85% through an FHA loan, or 80% through a conventional loan. There are several special incentives that make VA mortgages the best cash out loans available.
Benefits of a VA Cash Out Refinance Loan:
- Up to 100% Financing (some will be limited to 90% LTV).
- Structure loan to pay no out of pocket costs.
- Special low interest rates.
- No private mortgage insurance.
- No prepayment penalties.
- Minimal documentation requirements.
- Flexible credit requirements for borrowers with “fair” credit.
VA Cash Out Refinance Requirements:
In order to apply and qualify for a VA loan you will need to meet the following criteria and submit the following:
- COE (certificate of eligibility).
- A current home appraisal.
- 2 years of tax returns.
- 2 most recent bank statements.
- 2 most recent paystubs.
- Meet the DTI ratio requirements (standard is 41%, but exceptions can be made).
- At least 6 months of consecutive payments must have been made on your original loan (this is known as the “seasoning requirements”).
VA Refinancing Eligibility:
Any member of the military, including active duty, National Guard, reserves, or veterans are eligible to apply for a VA loan. Military spouses are also eligible for VA loans. The first step is to check your eligibility through the U.S. Department of Veterans Affairs. You can learn more about the eligibility requirements for a VA loan by clicking here.
If you would like to see if you qualify for a VA cash out refinance, we can help match you with a VA lender. The lender that we match you with will provide you with a free consultation, and the opportunity to get pre-approved for a VA loan.
Frequently Asked Questions
Will the new loan require PMI?
VA loans do NOT require PMI (private mortgage insurance), including cash out loans.
How much is the funding fee?
The funding fee for a VA cash out refinance is between 2.15-3.3% (unless you are exempt). It is 2.3% for first time use, and 3.6% for subsequent use.
If my property is listed for sale, am I still eligible for a VA cash out refinance?
If the property that you wish to refinance is currently listed for sale, you will need to have it taken off the market for at least 60 days before being eligible to refinance your VA loan.