VA 100 cash out refinance
Watch this brief video about using our VA 100% cash out refinance vs. a typical VA cash out loan:
With our VA 100 cash out refinance program, you are able take out 100% of your equity using your VA loan. It is still possible to achieve your goal of harvesting every bit of available cash from your home.
With a typical VA cash out refinance, extracting that last 10% of your equity is considered risky by most VA lenders.
This could be a great opportunity to use this unique VA loan program to put even more money back into your pocket than a traditional VA loan is capable of delivering.
The “extra 10%” of equity available on the VA 100 cash out refinance could fund home improvements, pay off credit cards, pay or for educational expenses.
VA lenders have avoided the higher VA cash out refinance LTV, funding up to 90% of your home’s value, thanks to a change in guidelines published by the VA in 2019.
The best VA cash out refinance lenders are able to fund the VA 100 cash out refinance, when most VA lenders are not willing to take on that extra risk. This can be an extremely helpful way to improve your financial situation.
Our 100% VA loan refinance program provides active military and Veterans the exceptional opportunity to refinance their current VA, conventional, or FHA loan into potentially a lower rate VA loan while extracting all the cash from the equity in their home.
The VA 100 cash out refinance program replaces all current, existing loans, including second mortgages and home improvement loans.
Although some Veterans would prefer not to “start over” with a new loan, other Veterans realize that extending your repayments back to 30 years can dramatically reduce your payments, thereby offsetting the effect of taking cash out.
The guidelines for obtaining a 100% cash out refinance VA loan are essentially the same as qualifying for a regular VA loan. These would include credit and income requirements and a home appraisal, performed by an approved VA appraiser, ordered through the VA Portal. Additionally, a termite inspection and clearance are required.
However, VA cash out refinance guidelines vary by lender, especially as it relates to maximum loan amounts and credit score requirements. The best VA cash out refinance lenders are the ones who are able to properly underwrite the additional risk and adjust their rates accordingly for the VA cash out refinance LTV and credit scores. Rates, adjusted for this additional risk are often a bit higher than typical VA home loan rates.
It is worth noting that the VA funding fee can be financed into the new loan amount. For first time users of their VA loan benefit, the funding fee on the VA 100 cash out refinance program is 2.3%. However, most borrowers already have a VA loan and are considered subsequent users, reusing their benefit. If this is your case, the VA funding fee is 3.6%.
Veterans who are receiving VA disability benefits are nearly always exempt from paying the funding fee.
As of January 1, 2020, thanks to the passing of the Blue Water Navy Bill, there are no longer any VA loan limits, which means you can use our 100% VA loan refinance, often to a large and lofty loan amount, depending on the lender.
Again, because not all lenders allow a VA cash out refinance max LTV of 100%, Veterans that haven’t owned their homes very long, having limited home equity, need a VA lender that will be flexible about the loan-to-value ratio, loaning up to 100%.
To discuss more about our VA 100 cash out refinance program, call SoCal VA Homes at 949-268-7742 to speak with one of our military Veteran Sr. VA Loan Technicians.