Cash Out Refinancing Loans |
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(Lender's Handbook, Chapter 6, Topic 3)The loan is limited to 90%* of the amount of the Certificate of Reasonable Value, plus the funding fee and the cost of any energy efficient improvements up to $6,000. |
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 A cash-out loan may be made to refinance the outstanding balance of an existing
mortgage lien, but can also include other debts (The first lien must be included
in the refinance).
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The veteran can receive cash proceeds from the loan for any purpose acceptable
to the lender.
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Existing mortgage loans or other liens of record may be refinanced whether they
are in a current or delinquent status, but refinancing loans are subject to the
same income and credit requirements as regular home loans.
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Note: The maximum guaranty is $36,000.
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Other Refinancing Loans
(Lender's Handbook, Chapter 6, Topic 5)
These consist of loans to refinance:
Construction loans. Installment land sale contracts in conjunction with the construction of a new
home. Loans assumed by veterans at interest rates higher than the proposed refinance.
These loans (which may exceed 90% of value) are similar to cash-out refinances in all aspects, except the loan amount may not exceed the lesser of:
the VA reasonable value, OR the sum of the outstanding loan balance plus allowable closing costs and
discounts.
Start Here
VA Lender Guide
The Complete Lenders Training Guide
Eligibility
Loan Types and Requirements
Interest Rate Reduction Refinance Loans
Cash Out/Other refinance Loans
Underwriting
Maintenance and Utility Guidelines
Automated Underwriting Systems
Closing Packages
Appendix
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