When you purchase a home through a VA Loan, there are options for you to choose from to obtain cash back. If the value of your home has increased since the purchase date, you now have positive equity in your home. However, if you are looking for cash back at closing during the buying process, this does not occur. You actually need to have “a little skin in the game” before the loan will close and fund. You can obtain cash back through traditional home equity loans offered by the Veterans Administration.
Cash Back from VA Loan Programs
There are two different loan programs offered by the VA that affects your current mortgage. You can apply for a VA Refinance after six months on ownership. This program allows you to basically trade one loan for another with a lower interest rate. It is normally referred to as a VA to VA loan. There is no cash back on the loan but you are obtaining a lower interest rate. You can also apply for a VA Cash Out Refinance. With this program, you can extract the equity in your home in the form of cash. It means you will have an entirely new loan with a new rate and term. The interest rates remain low and the cash out refinance does not require any money down on your part.
Using MortgageDepot for Help
We are a leading mortgage firm based out of New York. If you do not feel comfortable trying to negotiate with the lender, then you need to get us involved. We are mortgage experts with a professional team of loan experts. We guide you throughout the entire process, and rest assured you will receive all the benefits you deserve as a veteran.