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VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
Get VA Loan RatesThe VA offers many options to help veterans make the most of their homeownership including a cash-out refinance. When you have equity in your home, you owe less than the home’s value. Sometimes you need access to that cash, which the cash-out refinance offers.
Current VA borrowers may tap into their home’s equity with the VA cash-out refinance in Colorado, using the cash as needed. Veterans who haven’t used their VA financing benefits yet may also use the program to convert their current loan program into a VA loan.
It’s important to note that a cash-out refinance is not a home equity loan or a second loan on your property. It’s a refinance of your first mortgage – your VA loan or non-VA loan turned VA loan. You pay off your existing first mortgage (VA loan or not) and refinance it for a higher loan amount or into a VA loan if you didn’t have one already.
Just like the VA purchase loan, you may borrow up to 100 percent of the home’s value in certain situations.
The VA doesn’t specify how veterans must use their home’s equity. Unless you have a high debt-to-income ratio and must use the funds to pay off debt, the choice is yours.
Veterans often use the VA cash-out refinance for the following:
Qualifying for a VA cash-out refinance works the same as qualifying for a VA purchase loan. Lenders verify all aspects of your loan application including:
You must also prove you intend to occupy the property as your primary residence. Only the VA streamline refinance loan doesn’t have occupancy requirements.
The VA funding fee increases when you take cash out of your home or use the VA cash-out refinance program. Rather than 2.3 percent of your loan amount that homebuyers pay, you’ll pay 3.6 percent of the loan amount (unless this is your first time using your benefit). Either way, you may fold the fee into your loan amount.
VA cash-out refinance loans offer competitive rates just like VA purchase loans, giving you easier access to your funds and/or giving non-VA borrowers a chance to use their VA entitlement. I’m happy to help you determine how much equity you have and can tap into to fulfill your financial goals.
Purchase Qualifier Refinance Rate CheckerCall me toll free at (833-426-8256)