What is a VA Cash-Out Refinance?
If you are on a mission to refinance your mortgage to a lower rate in order to take advantage of your home’s equity and you are a former or current military member, a cash-out refinance may be just for you. A cash-out refinance loan exists specifically for military members thanks to the U.S. Department of Veterans Affairs (VA).
Do you qualify for a VA cash-out refinance? Keep reading True Concept Title’s guide to find out if this loan option is for you and how it could help you achieve your financial goals.
Understanding VA Cash-Out Refinancing
If you are an eligible service member, veteran, or military spouse, you likely qualify for a VA cash-out refinance loan. In this scenario, you can refinance your home to receive a larger loan while using the extra cash to create home improvements, cover closing costs, pay for title insurance, and more.
If you already have a VA loan, you may be able to receive an interest rate reduction refinance loan (IRRRL). This could help you get a lower interest rate or update other terms of your agreement.
Consult with our title and refinance experts at True Concept Title to cover your various refinancing possibilities. Regardless of what kind of loan you choose to obtain, True Concept Title will assist you with filing related documents and disbursements. Contact our title and escrow team today.
Do You Qualify for a VA Cash-Out Refinance?
In order to qualify for a VA cash-out refinance, you need a Certificate of Eligibility to show prospective lenders that you meet the following VA loan requirements:
- You met the minimum required length of service
- You were honorably discharged if you had left the military
- You have a minimum credit score of 620
- You have a stable income and/or employment
- You are borrowing 80% to 100% of your loan-to-value (LTV) ratio
Is a VA Cash-Out Refinance Right for You?
There are several circumstances in which a VA cash-out refinance could help you meet your financial goals. This may include instances when you:
Need Cash to Pay for Closing Costs
Although you aren’t allowed to roll closing costs into your loan balance through a VA cash-out refinance, you can use additional cash you take out to cover them. Since closing costs are normally 2% to 5% of your total loan value, this can be very helpful. No need to drain your savings!
Require Extra Cash for Other Expenses
If you need money to cover significant expenses such as high-interest debt, college tuition, or home improvements, a VA cash-out refinance can provide you with the cash to cover these at a relatively low-interest rate.
Want to Replace a Non-VA Loan with a VA Loan
You don’t have to take out cash from your new loan. You may simply just want to refinance, and that’s perfectly okay!
If you’ve decided a VA cash-out refinance is best for your finances, True Concept Title will help you process any related documents and disbursements.
Learn More > Mortgage Refinancing Tips
Do Yourself a Service with True Concept
As a former or current service member, you have many benefits that you should take advantage of, especially when it comes to purchasing and owning a home. With a VA loan or cash-out refinance,
If you need a quick and reliable company to help you with loan document processing, loan disbursements, and other title and escrow services, True Concept Title has your back. When you’ve decided on how to proceed, we make closing convenient with mobile closings anytime, anywhere. Contact our experts today – (813) 263-7168.
