VA Cash Out
The VA Cash Out is a type of refinance loan that is designed for Veterans that have existing VA loan but does not want to take equity in their real estate property and convert them to cash to use for something. But there are actually two types of cash-out with VA Cash Out – one is to get actually get cash in the form of check normally while the other is to get money and use it to pay your debts off which are not in your current VA loan.
The VA Cash Out program is quite popular with Veterans who would want to lower their loan rate while at the same time would want to tap into the equity of their home. For those Veterans who qualified in using cash out can use it for home upgrades or pay down their credit cards interests. On the other hand, they may also use it for other purposes such as if they want to enjoy a vacation with the family. Because of the low interest rates and the very flexible payment terms, it makes it a great time for qualified Veterans to invest and use their home’s equity for other payments thanks to VA Cash Out.
How does it work?
There are two ways in which the VA Cash Out works. A qualified Veteran can either open a loan that is supposed to be larger than his existing loan. With that, he will be able to receive cash outs after closing of the loan. On the other hand, you can use your newly opened loan to pay your debts or loan that is not a VA loan. In that case, if you have conventional loan there is not a need for you to have a home equity so that you can refinance similar loans. Your VA Cash Out loan could make it possible for you to refinance it.
General Requirements for VA Cash Out
When planning to get a VA Cash Out loan, you need to know that it is a full-documentation refinance which means you need to provide full documentation. It would typically include:
- Bank statements
- Tax returns
Eligibility for the loan can be established for Veterans who have been honorably discharged and who are on active duty. Those who are in current Reserve and are members of the National Guard with 6 years minimum required are eligible for VA Cash Out as well. All veterans that have been discharged with various conditions except dishonorable as well as surviving spouses that are not married may qualify as well.
Application for the whole process is quite easy. You generally have to speak a knowledgeable professional on mortgages and fill out a form. From thereon, there is likely VA Cash Out expert that will guide you through the whole application process. The amount that you can receive from the VA Cash Out is likely depending on the value of your home and your lender. If you have questions that need answers, the best services will give you the services which you need.