VA Cash-Out Refinance

The VA's Cash-Out Refinance Loan is available for active duty military personnel, a qualified veteran, or a spouse of either. It is specifically for veterans who seek to take cash out of their home equity to consolidate alternative expenses. These expenses can range from paying off high-interest debt to making home improvements. CityWorth Mortgage offers a VA Cash-Out Loan up to 100% of your home's value, unlike most other lenders who will limit you to 80-90% of your home value. Our loan offers begin at $75,000.

The VA Home Loan Guarantee

Most VA Home Loans are handled entirely by private lenders, and the VA rarely gets involved in the loan approval process. The VA stands behind the loan by guaranteeing a portion of it. If something goes wrong and you cannot make the payments anymore, the lending institution can come to us to cover any losses they might incur. The VA loan guarantee is the "insurance" that we provide the lender.

VA Home Loan and Refinance Advantages

The VA guarantee described above allows lenders to provide you with more favorable terms, including:

        
  • No private mortgage insurance premium requirement
  • VA rules limit the amount you can be charged for closing costs
  • We won't charge you a penalty fee if you pay the loan off early
  • VA may be able to provide you some assistance if you run into difficulty making payments

You should also know that:

        
  • You can reuse the benefit
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies

VA Cash-Out Eligibility

You must meet three factors to be eligible:

        
  1. Suitable credit (580 minimum)
  2. Sufficient income.
  3. Valid Certificate of Eligibility.

To obtain a COE, you must have been discharged under conditions other than dishonorable and meet the service requirements listed here.

Loan Fees

In most cases, a funding fee is charged to reduce the loan's cost to taxpayers. Keep in mind that the VA loan requires no down payment and no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. Review the latest funding fee chart for more information.

You do not have to pay a fee if you are:

        
  • Receiving VA compensation for a service-connected disability
  • Entitled to receiving compensation for a disability if you did not receive retirement or active duty pay
  • A surviving spouse of a Veteran who died in service or a service-connected disability

Other fees may occur due to interest and closing charges.

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Call us at 877-908-6250 or apply online.

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