Question:

Is there a VA home equity loan?

Answer:

What can serve as a VA home equity loan is in fact a VA cash-out refinance. A VA loan can be used much as any other loan to refinance an existing VA or non-VA mortgage with the purpose of consolidating debt, pay for college or get a new car. However, you can't take advantage of a VA Interest Rate Reduction Loan (IRRL) program to take cash.

Requirements for Getting a VA Home Equity Loan (Cash-Out Refinance)

You need to have sufficient equity on the house to satisfy the maximum 90% LTV requirement, allowed with a VA cash-out refinance, closing costs included. This opportunity is not available in Texas. The equity is the only requirement for a VA refi to take place.

With a cashout VA refinance, there are no out-of-pocket costs - they are rolled into the loan, and monthly mortgage insurance is not required.

Another good news about a VA refinance is that conventional non-VA mortgages can be refinanced to a VA loan, too, at pretty much the same terms. If you have average or low credit, a VA home equity loan refinance may not only get you cash for any purposes, but you could also get lower rates.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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