VA Cash Out Refinance
Pay down bills and high-interest debt with a VA Cash Out Refinance.
How much cash can you get?
The amount of cash you might get from a cash out refinance depends on the value of your home’s equity and the loan-to-value ratio of your refinance. Change the default values to personalize your estimate!
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You might qualify for $50,000
Ask us what refinance rate we can offer you
The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.
What is a VA cash out refinance and how does it work?
Put your home’s equity to work for you with a VA cash out refinance. If you want to lower your rate, but also get cash to pay bills, consolidate high-interest credit card debt, improve your budget or make home improvements then you may want to opt for a VA cash out refinance.
How does a VA cash out refinance work? This type of refinance is different from a VA Streamline Refinance (IRRRL) as it allows you to tap into the equity in your home to access cash to pay off debt, make home improvements or fund a high-cost expense such as a car or college. Qualified homeowners can refinance up to 100% of their home’s value for mortgage debt. VA homeowners can also refinance a lower percentage and use the cash to cover debt payments and other needs.
What are the benefits of a VA cash out refinance?
A VA cash out refinance gives you the flexibility to use your home's equity to pay off high-interest debt and expenses. The proceeds from a VA cash out refinance can also be used to pay down credit card balances, medical expenses and student loan debt as well as to pay for college, make emergency home repairs or renovations and improvements. There are also no restrictions in how you use the money you take out. In addition, since you are also refinancing your VA loan, you may even be able to reduce your interest rate and adjust your loan term as well.
VA cash out refinance vs. VA Streamline Refinance
The VA cash out refinance process differs slightly from a VA Streamline Refinance (IRRRL). With a VA streamline refinance, there is less paperwork needed and it’s a shorter process. For a VA cash out refinance, the borrower needs to verify income as well as get a home appraisal to determine how much their home is worth. Here are some more differences between the two VA refinance options.
| VA Cash Out Refinance | VA Streamline Refinance | |
|---|---|---|
| Can get cash out | Yes | No |
| Can lower your interest rate | Yes | Yes |
| VA Funding Fee | 2.3% to 3.6% of loan amount | 0.50% of loan amount |
| Who can apply? | Can be used even if you don’t have a VA loan | Need to have a VA loan |
| Owner occupied? | Yes | No |
VA Cash Out Eligibility
To be eligible for a VA cash out refinance, you must either have an existing VA loan or have a conventional loan you want to refinance and sufficient equity in your home. The VA cash out refinance is the only loan that allows you to refinance up to 100% of the value of your home. If you do not currently have a VA loan, you must meet at least one of the following criteria to be eligible:
90
consecutive days of
service during war time
181
consecutive days of
service during peacetime
06
years of service in the
Reserves or National Guard
Un-remarried surviving
spouse of a veteran
The Cash Out Refinance Process
This VA Cash Out Refinance process differs slightly from a VA streamline refinance (IRRRL) as the borrower needs to verify income as well as get a home appraisal to determine how much their home is worth. Here are the steps to take to help you through the cash out refinance to put your home equity to work for you.
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Shamika B.
Freedom Mortgage Sales Operations
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