VA Debt Consolidation
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
How much of my home's equity can I use to consolidate debt with a VA loan?
Since the Veterans Benefits Improvement Act of 2008 was passed, up to 100 percent of your home's equity can be used for a VA cash-out refinance. Before, the loan to value limit was 90 percent. In contrast, FHA and other programs have reduced the percentage of home value a borrower can use on a cash-out refinance. The VA loan program is unique in that VA-eligible borrowers are able to use the entire value of their homes to receive cash out to consolidate high-interest debts or pay other expenses. Variables that can affect the amount of cash available when refinancing include such factors as the home's appraised value, how much is currently owed, and whether fees rolled into the loan make the total amount financed more than the conforming loan limit.
Not all VA lenders offer the 100% program. Speaking with a lender can be the best way to find out more about the VA's unique 100% cash-out refinance feature. Contact your VA loan professional to see if your circumstances meet the requirements to refinance up to 100% of your home's value.
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