Program Description
The Department of Veterans Affairs (VA) Cash-Out Refinance Loan is for homeowners who want to trade equity for cash from their home. These loans can be used as strictly cash at closing, to payoff debt, makehome improvements, and payoff liens. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100 percent of the value of your home.
Program Requirements
Persons who may qualify for VA-guaranteed loans include:
- Veterans,
- Reserve and National Guard members (called to active duty),
- Active duty service members,
- Current Reserve and Guard members (after six years of creditable service), and
- Certain surviving spouses.
To be eligible, the Veteran/service member must have been discharged under conditions other than dishonorable and meet length of service requirements.
As a requirement for a VA home loan, the Veteran, the Veteran's spouse, or dependent child must certify occupancy for the property.
Application Process
To apply, you will need a valid Certificate of Eligibility (COE). There are several ways to obtain your COE:
- You may be able to obtain a COE online through eBenefits.
- If you are unable to obtain your COE through eBenefits, check with your lender. In most cases, your lender will be able to obtain a COE for you using the Automated Certificate of Eligibility (ACE) program.
For more information on this program, please visit the Home Loans webpage.
Loan Terms
Market Interest Rate, VA funding fee, and no pre-payment penalties. Maximum loan term cannot exceed 30 years. No maximum loan amount.
Contact Information
If you have questions:
- Visit the Ask VA (AVA) webpage to ask a question electronically.
- Please contact a Regional Loan Center if you have detailed questions.
Additional Information
| Max Loan Length | 30 years |
|---|---|
| Interest Rate | Market |
| Max Loan Amount | None |
| Payment Frequency | Monthly |
| Prepayment Penalties | None |
| Fees | Funding Fee |
