24 Jul Refinancing A Non-VA Loan Into A VA Military Loan With Cash-Out Refinance
Stuck in a spiraling debt cycle? What if you could tap into your home equity and get rid of all debts? With VA cash-out refinance, it is possible. A VA military loan is a $0 down mortgage opportunity that helps you purchase your dream home at lower interest rates and without any downpayment.
However, if you already have an ongoing non-VA loan for your home, you can use your military benefits to refinance it as a VA loan.
Here’s how to apply for this VA military loan and what the requirements are.
WHY APPLY FOR VA CASH-OUT REFINANCE?
With VA cash-out refinance, you can tap into your home’s equity and repay your existing debts, cover up any extra expenses or repay your tuition fees.
Moreover, unlike other VA military loan options, this loan type allows you to refinance a non-VA loan into a VA loan and claim the military benefits you so deserve.
ELIGIBILITY CRITERIA FOR VA CASH-OUT REFINANCE
To qualify for this VA military loan type, the following conditions must be true-
- You are eligible to obtain the VA Certificate of Eligibility (COE).
- You can satisfy the financial requirements of the department and the lender.
- You can prove that you’ll be living in the house you are refinancing for.
APPLICATION PROCEDURE FOR VA CASH-OUT REFINANCE
Like other VA military loan options, the first step would be to get in touch with a VA-approved private lender.
The rates and charges might differ from lender to lender, so make sure you contact at least three lenders to get the best quote.
Moreover, you might be offered some unsolicited offers that might appear official.
Stay aware of offers like exceptionally low interest rates, no waiting period, no extra costs, skipped mortgage payments or thousands of dollars in cash-back.
While they might sound intimidating, they can be fraudulent.
Unlike VA IRRRL, VA cash-out refinance requires you to apply for a COE. Ask your private lender to get it for you.
In addition to COE, you must also satisfy the financial requirements of the lender. For this, you must submit all the documents and other requirements to qualify for this VA military loan. After submitting all the details, you must sign all the closing documents and pay the closing fees.