A VA cash-out refinance can be a useful tool in accessing the equity in a home if you fit the criteria!
Here is why a VA cash-out refinance may be beneficial for you!
What Does It Mean To Do A VA Cash-Out Refinance?
A VA cash-out refinance basically refers to a refinance program for those who meet the criteria where you may be able to access 100% of the appraised value of your home. By using a VA cash-out refinance, you may be able to use that money to pay off debts, fund home improvements, or take a conventional loan and turn it into a VA loan. The benefits of a VA loan are extremely useful to some and may offer better terms.
If you decide to turn your conventional loan into a VA loan via this refinancing program, the money taken out can be used to pay off any other expenses that you may have.
How Does A VA Cash-Out Refinance Work?
With VA loans being government-backed, the risk for lenders becomes very minimal. Because the risk is minimal, lenders may be able to offer more favorable terms on VA loans. Applying for a VA cash-out refinance is easily comparable to applying for a conventional loan.
Do You Qualify?
You may think that you already need to have a VA loan to apply for a VA cash-out refinance, however, this is not the case. In order to qualify for this VA financing, you will need to qualify for a VA loan.
The minimum requirements on the application for a VA loan include:
- Minimum service of 90 days during war or 181 days of peace
- Being a spouse survived of a veteran who died on duty
- Six or more years of being in the National Guard
About Sovereign Lending Group
Sovereign Lending Group is a VA loan lender located in Southern California with a division in Dallas, Texas. If you are interested in a VA cash-out refinance or any other type of refinancing program, contact us and we’ll go through these programs with you. Here at Sovereign Lending Group, we pride ourselves on our outstanding customer service and the testimonials that we get. If you would like to learn more about Sovereign Lending Group, visit www.slgmortgage.com and give us a call at 1-800-689-1057.
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