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

Beatzbydyn Dorsey
Beatzbydyn Dorsey
12/04/2023
Jason is the best..we are officially homeowners thanks to him❤️
Kacey Young
Kacey Young
27/03/2023
Thank You Jason and Trevor You guys are Awesome ‼️ MMS make the impossible POSSIBLE! Michigan mortgage solutions stand Solid On Their WORD. As long as the buyer play their part Jason Nolan and Trevor would do the rest of the pushing. MMS IS Highly Recommend!! Give Michigan Mortgage Solutions A Call And Watch Your Dream House Come True.
Keon James
Keon James
11/03/2023
Jason helped me in every way possible. Very determined to get the job. Very knowledgeable in his profession. He can turn any situation into a GREAT situation. Trevor also assisted and same goes for him. A amazing company to go through!
Geetanjali Dutt
Geetanjali Dutt
11/03/2023
My experience with Jason and his team was absolutely fantastic. As a first time buyer I needed guidance and Jason was there through every step, his team made all the processes so easy and smooth! 10/10
Melanie Krebs
Melanie Krebs
03/03/2023
By far the best experience I’ve had working with a lender. Very helpful and easy to talk with. And they helped us get into our perfect home faster than I ever could have imagined.
Emily Adams
Emily Adams
12/02/2023
Jason was great to work with during the mortgage process and really made everything simple and quick! He was available to talk to whenever needed and always helpful. I would definitely refer him to my family and friends!
Cathy Mason
Cathy Mason
20/01/2023
Jason Nolan recently guided us through the process of a Reverse Mortgage for my Mother-in-law. He was so helpful and so knowledge and that made everything go extremely smooth. Jason followed up constantly and got back to us immediately with the answers to all of our questions. He’s so patient, trustworthy and professional. If we ever have any home financial needs in the future, we would go back to Jason 100%. The Mason Family
Marisa Hernandez
Marisa Hernandez
14/12/2022
I am so happy I found Michigan Mortgage Solutions to assist with my loan on my first house! Jason and his team were there when I had questions and it truly felt like they held my hand during the entire process. I can’t thank them enough for their hard work getting me in my home. I would recommend them to everybody especially someone who is buying their first home and not exactly sure where to start!
CRYSTAL AVERY
CRYSTAL AVERY
03/12/2022
Jason Nolan & his team were such a great help with me and my family in finding us out beautiful home that we purchased. He heard our concerns and he made it possible for us to close on our home in 4 weeks. If you’re ever looking for someone to be on your side Jason Nolan and his team are the people you want on your side. Thank you guys for your hard work.
Timothy Pendell
Timothy Pendell
30/11/2022
Jason Nolan and Trevor are 2 of the finest lenders I have had the pleasure of working with. They saved me a lot of money at closing. I don't know if they eat or sleep because the were answering my questions and calls at midnight and 4 am if I needed them. I was on one hell of a time crunch to move, but these two came through for me every time. A great duo and I look forward to doing more business with them in the future.
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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