VA Home Equity Loan
If you have a VA Loan and need cash for any reason, you have the option of applying for a cash-out loan, which is also called a home equity loan. A home equity loan allows you to refinance your house for up to 90% of the appraisal value. The money you take out from the loan is borrowed against your home’s equity and can be used for any purpose.
Is a home equity loan right for you?
If you need cash today, a home equity loan might be just the thing you need. The proceeds you receive from the loan can be used to consolidate debt, pay college tuition, buy a new car, do home repairs and more. You can also have the money directly pay off any outstanding liens against you.
Why not just apply for a personal loan?
While it is possible to take out small, personal loans for big ticket items, it is not always the best choice. With a cash-out refinance you can borrow money with a low interest rate. Usually you will be able to refinance the loan at the going market interest rate. Personal loans are much more expensive because of their risky nature. The interest rates for a personal loan will be significantly higher, making the overall cost of the loan much more expensive.
Where can I get a home equity loan?
While private lenders have introduced stricter measures recently regarding home equity loans, the VA still offers a cash-out refinance to all its veterans. You can refinance for up to 90% of the appraisal value and still get a great interest rate. It is not necessary to keep your original lender, so be sure to shop around and see what the best plan is for you.
What if I want to refinance without taking money out?
For individuals looking to refinance their homes in order to take advantage of lower interest rates, the VA has created the Interest Rate Reduction Refinancing Loan (IRRRL). The IRRRL was designed to make refinancing a simple, affordable process by eliminating the need for additional paperwork. There are also very minimal out-of-pocket expenses for this type of refinancing plan. Keep in mind that an IRRRL is solely for veterans looking to lower their current interest rate – you are not allowed to take any cash-out from the new loan.
No matter what your reasons for refinancing your home, with a VA cash-out refinancing loan you will be able to procure the money you need today with an affordable, low interest rate.
Find Out What You Qualify For
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