Important factors to keep in mind about Cash-out Refinancing include:
- A cash-out refinancing loan is a VA guaranteed loan which refinances any type of lien or liens against the secured property. The liens to be paid off may be current or delinquent, and from any source. (tax or judgement liens, VA, FHA, or conventional mortgages).
- An appraisal is required and you must qualify based on income and credit.
- Loan proceeds beyond the amount needed to pay off the liens may be taken as cash by the borrower for any purpose acceptable to the lender.
- Cash-out refinance loans can be for up to 100% of the appraised value of the home.
The loan must be secured by the first lien on the property.