If you’re active duty military personnel, a qualified veteran, or a spouse of either, you are eligible for a 100% VA cash-out refinance loan if you live in the San Diego area.
Not many lenders offer a 100% cash-out VA loan. In fact, most will only go to 90% or 95%. I have access as a direct lender to a 100% option.
If you own a home, why not use the cash equity you have built up and put it to good use with a San DiegoVA loan right now! To get you started right away and find out the latest interest rates, you can get a free quote by CLICKING HERE.
As a San Diego mortgage broker, I will explain how the VA program works and what you need to know to qualify for these types of San Diego home loans.
How Does the San Diego VA Loan Program Work?
VA loans are provided through lenders which are VA approved and are insured by the Department of Veterans Affairs. These loans allow financing for buying a home or refinancing a home you already own.
The VA loan program process is very similar to any other mortgage and in some ways may even be easier. The VA really wants to help veterans be able to refinance their mortgages or buy new homes and has made a program that provides true benefits to those who qualify.
Requirements for a San Diego 100% VA Cash Out Refinance Loan
To qualify for a VA 100% cash out refinance loan, the VA program requires that you have a minimum Fico score of 640, and that you have a Certificate of Eligibility. If you qualify for a 100 % VA Cash Out refinance loan you can go up to the San Diego limit of $527,500. You will also be pleased to learn that there is no limit on the cash out for a VA refinance loan.
VA loans are more lenient on debt to income ratios and other aspects, but they do like to see that you have a certain amount of residual income each month depending on the number of family members. The file will be run through an automated underwriting system and must receive an approve status.
Ways You Can Use a 100% VA Cash Out Refinance Loan in San Diego
What would be the reason to do a 100% cash out refinance loan? There are many reasons why using the equity in your home could benefit you coming out of the recession while home prices are higher, including some of the following:
- Use the loan to pay of your debts which you might have wracked up during the recent economic downturn such as paying off your credit cards and other personal loans.
- Use the cash to pay off your expensive student loans.
- Use the money to pay off an existing equity line that may be adjusting soon to a fully amortized payment. Most people do not realize that their equity lines are only interest only for 10 years and them the payment becomes fully amortized over a 20 year period. That could cause your payment to sky rocket. Especially if the adjustable rates go up.
- Use the loan to purchase additional real estate for a long term investment and/or as rental income. The real estate market is coming alive and starting to surge again which makes property a great investment.
- Use the funds to remodel or retrofit your house if you need it.
With the current increase in home values and historic low rates, the equity in your home may be better put to use paying off high interest credit cards or more volatile equity lines. The VA 100% cash out refinance makes this easy to do and could allow you to save hundreds of dollars a month and still lock in a low interest rate on a 30 year fixed mortgage.
What Are the Benefits of a VA Loan
A VA loan has a number of benefits that are not found in other FHA loans including the following:
- A VA Loan can provide you with 100% financing.
- Although a VA loan has an up-front funding fee which is based on a percentage of the overall loan, it can be conveniently added onto the loan itself.
- VA loans will not require you to pay an up-front funding fee if you are a disabled veteran.
- You are not required to have mortgage insurance like you would be required for a FHA loan.
- VA loans have great interest rates.
- Underwriting for VA loans tend to be much more lenient than other conventional loans.
- A VA Loan can be a great option for a veteran who is looking to refinance their current loan. There are VA Streamline options (IRRLs) if you already have a VA loan and full documentation VA refinance options. I have a lender who does not equire any valuation on the property, so you could be upside down and still qualify.
- The VA loan allows a borrower to do a rate and term refinance of up to 100%. You can use this to combine and pay off a 1st and 2nd mortgage up to 100%, and it also provides cash out up to 100% loan to value.
- As a San Diego mortgage broker, I can tell you that if you qualify for a VA loan then you should most definitely use it to your best advantage because it has a lot of positive benefits that you won’t find in other standard loans.
Who Qualifies for a San Diego VA Loan?
To qualify for a 100% cash out VA refinance loan or a 100% VA purchase loan, you must be one of the following:
1) You must be an active duty personnel currently serving in the U. S. military, or
2) You must be a Veteran. To qualify as a veteran, there are certain criteria that apply which include the following:
- Active-duty veterans discharged during WWII or later, without a “dishonorable” discharge.
- Active-duty veterans with at least 90 consecutive days of service during a major conflict.
- Peacetime veterans and active duty personnel who have had at least 180 days of consecutive service.
- Enlisted veterans who entered the military after 1980 or officers who entered the military after 1981 and who have served at least 2 years.
(NOTE: A Veteran must also obtain a Certificate of Eligibility which you can get through either the U.S Department of Veteran Affairs or most qualified VA lenders will help obtain it as a service they provide.)
3) A civilian, non-veteran spouse can also apply so long as their spouse is either an active duty personnel or qualifies as a veteran defined above.
Requirements for a San Diego VA Loan to Buy a New Home
To obtain approval for a VA Loan for a new home, the process will require a review of your credit history, your employment and several additional factors before you can qualify to obtain an insured VA loan.
You should be aware that although San DiegoVA loans are not specifically linked to your credit sore. Most San Diego lenders will not offer a loan if your FICO score is less than 620. We do have a source that will go down to 580.
The higher your credit score – the lower the rate of interest on the loan. You can obtain your own FICO score through all the major credit reporting agencies and take steps to increase your scores before you apply.
If you want to get pre-approved for a San DiegoVA loan to buy a new home right now then CLICK HERE. If you need more information or have some questions about a VA loan and want to speak with an experienced San Diego broker than call me at 619 – 312 – 0612.
A Review of the 100% VA Cash Back Refinance Loan Guidelines
To qualify you have to be an actively serving or be a veteran or spouse of either. You also have to provide a Certificate of Eligibility which you can either obtain through your lender or through the department of Veteran Affairs. There are specific definitions which outline how a veteran is qualified.
The difference between a VA loan program and other loans is that you will not be required to get mortgage insurance like other FHA loans. However, you have to pay an upfront fee which is based on a percentage of the loan amount and can be added onto the loan.
You should also know that to get the 100% VA Cash Out Refinance loan, you will need to have a minimum FICO score of 640. You should also be aware that the VA does not set rates for the VA Loan program as the interest rates are determined by individual lenders found in the San Diego area.
The higher your credit score – the lower the rate of interest. If you are looking for ways to improve your score, reading this recent post on credit scoring, as this can save you money down the road.
Call Shanne Sleder at the Mortgage Planners to Apply for a 100% VA Cash Back Refinance Loan
If you need to learn more about the 100% VA Cash Back Refinance loan, VA loans in general or need other information on San Diego home loans, then you should talk to an experienced San Diego mortgage broker such as myself. I can get your application process started right away and give me a call at 619 – 312 – 0612.