VALoans.com belongs to the Mortgage Research Center, LLC, ("MRC") Network. MRC is a private company that provides mortgage information and connects homebuyers with lenders. Neither VALoans.com nor MRC are endorsed by, sponsored by or affiliated with the United States Department of Veterans Affairs or any other government agency. MRC receives compensation for providing marketing services to a select group of companies involved in helping consumers find, buy or refinance homes. If you submit your information on this site, one or more of these companies will contact you with additional information regarding your request. For a full list of these companies click here. By submitting your information you agree MRC can provide your information to one of these companies, who will then contact you. MRC does not guarantee that you will be eligible for a loan through the VA loan program. VALoans.com will not charge, seek or accept fees of any kind from you. VALoans.com does not offer mortgage products and if you are connected to a lender through VALoans.com, specific terms and conditions from that lender will apply.
A unique refinance option, the VA Cash-Out Refinance lets borrowers convert non-VA loans into a VA loan, or refinance a VA loan while withdrawing cash from your property’s equity. At the same time, the cash-out refinance can lower the loan’s interest rate, even if it was a non-VA loan previously.
Cash-out refinance differs from a home equity loan. The latter exists in addition to the mortgage, while a cash-out refinance replaces the existing loan altogether. For qualified homeowners, it’s possible to refinance 100 percent of the property’s value in some cases. Talk with a lender about their specific guidelines.
Homeowners who want to take out cash often use the money for home improvement, debt payment or other obligations.
For homeowners refinancing a non-VA loan into a VA-backed loan, it is not necessary to take out any cash. That means you can have a conventional, FHA or USDA loan and basically bring it into the VA loan program. These homeowners will also go through the same process as if they were homebuyers seeking a VA loan. Credit, income, employment, debt and other details will need to satisfy a VA-approved lender. A VA appraisal is required, too.
For current VA loan borrowers looking to refinance, the VA funding fee increases to 3.6 percent of the loan value in most cases. That sum is not due at closing. Instead, lenders can fold that fee and closing costs into the entire loan amount. For first-time VA loan users, the funding fee is 2.3 percent in most cases. If you get compensation for a service-connected disability or you are a Purple Heart recipient you typically don’t have to pay this fee.
Another thing that Cash-Out refinances require is occupancy. Veterans looking to get a VA Cash-Out have to intend to occupy the property as their primary residence. So, generally, you could not look to a Cash-Out refinance for a property you’re no longer calling home. Talk with lenders in more detail about your specific occupancy situation.
Homeowners in Texas may encounter restrictions regarding Cash-Out refinance loans. If you want to refinance a property in Texas, you can talk with a mortgage lender in more detail about your options.
