Refinance Your Mortgage with a VA Cash-Out Refinance.
The VA Cash-Out Refinance loan gives Veterans and military servicemembers, with qualified credit, the ability to refinance their current home loan into a lower rate, while accessing cash from the home's equity.
The VA Cash-Out Refinance is the only VA Home Loan type that includes cash-out refinancing up to 90% of the home’s value. Plus, Veterans and servicemembers can use the VA Cash-Out Refinance even if their current mortgage is not a VA Home Loan—it can be used to convert conventional loans, FHA loans, or any other loan type into a VA mortgage.
There are no restrictions on how you spend the cash back from your VA Cash-Out Refinance; however, common uses include:
Reducing or paying off debts.
Financing home improvement projects.
Paying for college/higher education.
Paying for emergency expenses.
Although the name suggests otherwise, homeowners aren’t actually required to take out cash with a VA Cash-Out Refinance. Even if you don’t plan to receive cash at closing, you can still take out a VA Cash-Out Refinance loan to lower your rate, replace a current adjustable-rate loan, or eliminate mortgage insurance paid on your existing mortgage.
VA Cash-Out Refinance Requirements
VA Cash-Out Refinance requirements are similar to those for a typical VA purchase loan, including proof of income, credit underwriting, and a home appraisal. You must also certify that you currently occupy or intend to occupy the property being refinanced with the VA Cash-Out Refinance loan.
It is important to note that, unlike a VA IRRRL, you can’t roll the closing costs of the home on top of the refinanced loan. However, you may be able to finance your closing costs into your new loan as long as you still meet the loan-to-value (LTV) guidelines.
As with all VA Home Loans, homeowners must pay the VA funding fee, although there are some circumstances in which the VA funding fee can be waived. You may qualify for exemption if (1) you are a Veteran with a service-connected disability or (2) you are the surviving spouse of a Veteran who died in service or from a service-connected disability. With a VA Cash-Out Refinance, you have the ability to roll the funding fee into your overall loan amount as long as you meet the loan-to-value (LTV) guidelines.
VA Cash-Out Refinance Rates
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Recent volatility in the financial markets have caused mortgage interest rates to vary significantly on a daily basis. AAFMAA Mortgages Services LLC (AMS) remains focused on helping AAFMAA Members and prospective Members get the best mortgage and rates available. Please contact us directly to obtain current rates, offers, and terms.