Question:

Can I do refinancing VA home loan to tap home equity?

Answer:

Yes, refinancing VA home loan with the purpose to use up your home equity is available through VA cash-out refinance programs.

Refinancing VA home loan for cash is a good idea.

People don't usually realize how easy it is to get VA financing when you are eligible. And, yes, cashing equity with a VA loan is possible, much like with any other conventional cash-out refinance. A funding fee of 2% or more will be required, but it can be borrowed with the loan.

Refinancing VA home loan mortgage for cash allows you to use equity of up to 90%. If you are borrowing closing costs, the overall loan amount cannot exceed the designate LTV (loan-to-value) of 90%. With automatic processing available with most lenders, your refinancing VA home loan application will be processed in no time.

The only major requirement for the program is that you have enough equity to be eligible and that you don't live in Texas, where VA cash-out refinance mortgages are not allowed.

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