Now Cash in 100% Loan Refinance with VA Financing | Business

For borrowers who are military veterans, the recent VA loan change can be extremely beneficial, if you have a VA mortgage on your home and are interested in using VA financing to achieve your goals in relates to refinancing.

The Department of Veterans Affairs recently announced a change to VA loans. Prior to the Covid-19 pandemic, there was a change in VA loans which were always 100% funded. In other words, before the pandemic, you could get VA financing up to 100% loan to value. 100% financing could be used to pay off debt to do home renovations, to lower your interest rate, or to meet your financial goals on a VA mortgage. The previous loan did not have to be VA. The previous loan could have been anything if you qualified with your VA entitlement. Then the Covid-19 pandemic hit and the VA loan went from 100% to 90%. This means, for example, that if your home was worth $500,000 before the pandemic, you could make up to $500,000 new VA mortgage. Then, when the pandemic hit, that limit was raised to $450,000. This same example $50,000, 10% equity should be in a 90% funded position once the refinance is complete. Well, it’s now 2022, and the Department of Veterans Affairs has reinstated the 100% cash-on-value loan guideline for qualified VA military borrowers. This change restores the old guidelines that were previously in place before the pandemic, which allow up to 100% financing for any purpose for owner-occupied residences. This change, coupled with today’s low interest rates, may well align with families wanting to borrow money using their VA home loan when it comes to their mortgage financing.

If you are a military veteran and have questions about VA loans and whether or not you may qualify for such funding; work with an experienced lender who can walk you through the intricacies of VA financing intricacies and how it can fit into your family’s short- and long-term financial goals.

Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes, vacation homes and investment properties. Learn more about www.sonomacountymortgages.com.

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