VA Cash-Out Refinance In San Diego, CA
A VA cash-out refinance is for homeowners who want to take money out of their home equity. This is for active duty military personnel, a qualified veteran, or a spouse of either. A VA streamline refinance is also available for VA loan holders looking to reduce their mortgage payments. With a cash-out refinance loan, you can put this money towards anything you want—whether it be paying off debt or putting it towards a vacation. A cash-out refinance can even be used to refinance a non-VA loan into a VA loan. Loan limits vary by county and effective January 1, 2015 the maximum VA loan amount for one-unit in San Diego County is $562,350. This amount is subject to change.
VA Loan Guarantee
The VA guarantees loans up to 100% of your home value. This means that if you cannot make the payments, the VA will cover the losses. Keep in mind that like other home loans, monthly payments are required to remain in the property. With this VA guarantee comes a VA funding fee. The funding fee is between 2.15% and 3.3% of the loan amount. The funding fee may be waived if you meet any of the following conditions:
- You are receiving VA compensation for a service-related disability; or
- You are entitled to receiving compensation for a disability if you did not receive retirement or active duty pay; or
- If you are the surviving spouse of a Veteran who died in service or from a service-related disability
VA Loan Qualifications
The first step is to see if you meet VA home loan eligibility requirements and submit a Certificate of Eligibility. Second, confirm that the property you are applying for is owner-occupied. Third, review your credit history and verify that you have made your mortgage payments on-time for the last 12 months.
VA Loan Benefits
- Maximum Loan-To-Value is 100%
- Minimal closing costs
- No down payment required (sales price can’t exceed appraised value)
- No private mortgage insurance premium required
- Can be used to combine your first and second mortgages
These materials are not from the U.S. Department of Veterans Affairs, HUD or FHA and were not approved by a government agency.