Cash-Out Refinance
Our VA cash-out refinance is a VA-guaranteed loan which refinances any type of liens against property in Florida. The mortgage being paid off may be VA, FHA or conventional. Proceeds of the cash-out refinance beyond the amount needed to pay off the lien(s) may be taken as cash by the borrower to fund home improvements, pay off credit card debt, car loans, student loans, etc. The VA cash-out refinance limit is 90 percent of the property value plus the cost of any energy efficiency improvements plus the VA funding fee.
The maximum VA guaranty on cash-out refinance loans is $36,000, even for loans greater than $144,000. If you need to do a larger cash-out, consider one of our many other cash out refinance programs or credit lines. The veteran or spouse of an active duty member must certify their intent to occupy the property. Unlike a rate-term refinance, the VA requires an appraisal when doing a cash-out refinance.
Cash-Out vs. Home Equity
The VA does not guaranty a home equity line of credit (HELOC). Florida customers interested in a VA cash-out refinance should also consider a HELOC and FHA/conventional cash-out refinance programs.
Eligibility
The VA allows you to do a rate-term refinance only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.