VA Cash Out Refinance Loan

VA Cash Out Refinance Loan

The VA cash-out refinance loan has exceptional benefits for veterans and their surviving spouses. The veterans current home loan does not have to be a VA loan in order to refinance to a VA cash out program. This mortgage program allows veteran homeowners to borrow up to 100% of their homes value. This means the homeowner can get the difference between what they owe on their existing mortgage and the home’s actual value in the form of cash. 

VA loans offer really low interest rates and there is no monthly mortgage insurance which can be a big benefit to the borrower’s cash flow when compared to FHA cash out options. However, the VA loan does require an upfront funding fee of 2.3% which gets financed into the new mortgage. That’s $2,300 for every $100,000 borrowed which can add up quickly depending on your loan amount. It’s important to evaluate this funding fee when comparing your loan options for pulling cash out.

VA Cash OUT Refinance Guidelines

To qualify for a VA Cash out Refinance, a homeowner will need to be a veteran, or a surviving spouse, and meet VA guidelines as well as any additional lender guidelines. Keep in mind that the VA only insures the loan against default and does not lend money directly. This is why you will often find conflicting information regarding VA guidelines when seeking a lender’s approval. 

The lender will actually determine their own guidelines for approving VA loans and these guidelines are called lender overlays. The main overlay to be concerned about beyond credit score would be a Loan to Value (LTV) overlay as some lenders will restrict cash out loans to 90% of the home’s value.

Michigan Mortgage Solutions Can Still Provide 100% VA Home Loans

However, Michigan Mortgage Solutions is a mortgage broker and a lender. This means we can lend our own money but also broker loans through our lender partners. We have dozens of lender partners and a handful of them still allow 100% financing on VA cash out refinance loans.

Top Requirements For The VA Cash Out Refinance Program

Credit Score Requirements – VA guidelines state that you need a minimum credit score of 580 to qualify for a cash-out refinance, but most lenders set their own minimum credit scores. Most lenders require at least a 620 score but at Michigan Mortgage Solutions we have lenders that will provide approvals all the way down to 580.

Debt to Income Requirements – To get approved for a VA Cash-Out Refinance, a borrower must have a debt to income ratio lower than 41%. This means that all debt payments including the new VA Cash Out loan cannot be more than 41% of their total gross income.

Payment History Requirements – To qualify for an VA Cash-Out Refinance the borrower must have no more than one 30 day late mortgage payment in the past twelve months and none in the past six months.

Check Out What Other Happy Home Owners Are Saying About Michigan Mortgage Solutions

kate carr
kate carr
2022-07-19
Always great ive done several mortgages and refinancing here. Thanks for everything!
Jeremy
Jeremy
2022-06-20
I just want to say thank you to Jason Nolan. Who worked very hard to help me purchase my first home. I was doubtful at first being I was only 19 at the time, didn't think it would be possible to get such a great loan with a great interest rate. But Jason worked his magic and we could not be happier.i would recommend him to anyone looking to buy a home. Thanks again
Melissa Johnson
Melissa Johnson
2022-06-14
Jason and Trevor were amazing to work with. I was a first time home buyer and Jason was so informative and kept me in the loop every step of the way. He was always accessible and would even answer his phone late in the evenings and on weekends. They made sure to get me a good rate and we closed right on time. Thanks guys for all the hard work!
Jessica Miller
Jessica Miller
2022-06-06
Trevor was great and went above and beyond our expectations while processing our VA loan. He was quick to respond to our questions and we would HIGHLY recommend him and his company for your mortgage needs.
Jacob Pincura
Jacob Pincura
2022-04-20
Jason and his team were very professional and thorough during the entire refinance process. We received great advice on how to proceed and their expertise resulted in the best possible outcome.
John Ruf
John Ruf
2022-04-11
Wonderful experience with Jason Nolan and his team! They communicated with me throughout the process and was very helpful with any questions that I had. I'll definitely go with Michigan Mortgage Solutions for my next mortgage or refinance.
Alex Garcia
Alex Garcia
2022-01-22
Jason and Trevor were great, really enjoyed working with them. They definitely get the job done, couldn’t ask for a better team highly recommended.
Jennifer Trione
Jennifer Trione
2022-01-17
Jason and his team were incredible!!! He made sure I knew exactly what was going on at all steps of the mortgage process. I am so glad that they were my mortgage company because I don’t think anyone else would have gone above beyond like they did for me!! I can’t say it enough! The whole process was fantastic and I wouldn’t go anywhere else!!!!!!
Michigan Mortgage Solutions

Michigan Mortgage Solutions

Michigan Mortgage Solutions offers a variety of mortgage programs to suit your needs. FHA Loans, Conventional Loans and VA loans are just some examples. For experienced homeowners looking for cash out or refinancing options there is help available as well with the offer of an FHA streamline loan option that can be completed in 10 days! Michigan Mortgage Solution has something to offer every customer; whether you’re a first time home buyer or seasoned veteran our team will find the right Michigan mortgage solution for you!

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