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

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.
Etoria Langford
Etoria Langford
13/11/2022
Jason helped me out a lot since it's my first time being a homeowner and buying a home at the same time. I really appreciate the help and guidance 😁
Chris aponte
Chris aponte
13/11/2022
Jason and Trevor were absolutely amazing, we are first time home buyers and they made sure we were more then comfortable with every step and were available any time we had questions, we purchased our home, for sale by owner with for less then a $1,000 down. And we couldn't be more grateful for what they were able to do for us. We will always recommend them to all our friends and family. Thank you again from the bottoms of our hearts.
Stacey Richardson
Stacey Richardson
26/10/2022
Absolutely the best. Distance between myself, Jason and Trevor didn’t negatively effect the service that I received. Will definitely recommend.
Erica Yeloushan
Erica Yeloushan
14/10/2022
Michigan Mortgage Solutions made my experience as a first-time homebuyer a breeze! I came to Jason with very little knowledge of the mortgage process and he made sure to help me learn everything I needed to know about mortgages and the many programs that exist. Keeping my best interest in mind, Jason went above and behind to provide me with a variety of loan options that ultimately allowed me to lock in a low rate and bring very little money to closing. I highly recommend this company. Jason, Trevor, and Yolanda aim to make your experience as smooth and painless as possible. Thank you, thank you, thank you!
Tracy 7307
Tracy 7307
05/10/2022
Jason was a HUGE help to me as a first time homebuyer. He answered all of my questions and communicated with me regularly. Cannot recommend them enough!
Blake Moore
Blake Moore
27/09/2022
Jason and his team were a pleasure to work with. They were always there for a question or follow up. Through out the process I was always informed on what was going on. I highly recommend Michigan Mortgage Solutions.
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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