Can I use the VA loan to refinance or get cash out on my current mortgage even if it’s currently not a VA loan?
Yes, but VA has specific guidelines when it come to any refinance that’s not considered a VA Interest Rate Reduction Refinancing Loan (IRRRL). The VA loan to value limit is 90% of the reasonable value of the property. *Note the state of Texas has its own cash out rules that may supersede the VA limits. Contact a VA Specialist for details. A cash-out VA 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 judgment liens, VA, FHA, or conventional mortgages) An appraisal is required and you must qualify based on income and credit. An appraisal is required and the veteran 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. The loan must be secured by the first lien on the property.
