VA Cash Refinancing for Military Borrowers Seeking Money Back Mortgages
The Veterans Affairs released a new cash refinancing option and the lenders at VA Home Mortgage Loans provide are ready to get you extra money next time you refinance the home.
Cash-Out Refinance with VA Loans
You can refinance a VA loan for up to 90% of the Certificate of Reasonable Value (CRV) plus all closing costs if the property can withstand the designated loan to value ratio. In the state of Texas, the maximum loan amount is limited to 80% of the CRV. The CRV is based on an appraiser's estimate of the value of the property. There is no minimum amount of time that you must own your home. But, it must have sufficient equity to qualify for the loan. Like other cash-out refinances, you can use the cash for debt consolidation, rolling your second mortgage into your new mortgage or just about any other lender-approved purpose. And, you can refinance an existing conventional loan under the VA refinance program for cash back with better interest rates and terms.
Loan Requirements: The liens to be paid off may be current or delinquent, and from any source (tax or judgment liens, VA, FHA, or conventional mortgages). An appraisal and credit underwriting are required. The loan must be secured by the first lien (your existing 1st mortgage) on the property. The maximum guaranty on VA Cash Out refinance loans is $36,000. The maximum "cash-out" loan is limited to $144,000.
For the VA refinance, the applicant must be an eligible veteran who has available entitlement. If you're refinancing a conventional loan into a VA loan, you'll need to get the certificate of eligibility from your regional VA office. You probably won't need one if you're refinancing an existing VA loan. Check with your lender for details. Otherwise, the loan approval requirements are the same as it is for conventional or other government-backed loans.