Did you know the VA home loan can be used like a piggy bank? With a VA Cash-Out Refinance, you can borrow money from the value of your house and use it for lots of things! That’s right, your house can turn into extra cash for you!

Here’s how it works: Let’s say your house is worth $200,000 and you still owe $100,000 on your VA loan. That means the value your house has built up is like $100,000 piggy bank! With a VA Cash-Out Refinance, you can take out a new VA loan for more than what you owe on your current loan, but there’s a limit. Lenders typically won’t let you borrow more than 90% of your home’s value. So, in our example, that would be $180,000 (90% of $200,000). You would keep the difference between the new loan and what you owe now, which is like breaking open your piggy bank!

What can you use this extra cash for? Here are some ideas!

• Fix up your house! Do you have a leaky roof or a kitchen that needs a makeover? You can use the cash to make your house even better!
• Pay off other debts! Do you have credit cards or other loans with high interest rates? You can use the cash to pay them off completely! This can save you money every month because you won’t be paying so much interest anymore.
• Do other things you need! Maybe you need a new car or want to help your kids with college. The cash is yours to use for whatever you need!

But how do you know if you can get a VA Cash-Out Refinance? Here are some simple rules:

• You must be a veteran with an existing VA loan.
• You generally need to have a good credit score, but the exact requirements can vary depending on the lender.
• You can’t borrow more than 90% of your home’s value (minus what you already owe on your VA loan).

Ready to see if a VA Cash-Out Refinance can help you? Talk to your bank or a lender who specializes in VA loans. They can help you figure out if it’s a good option for you and how much extra cash you might be able to get!

Remember: This is just a basic overview. It’s always a good idea to check with the VA directly for the latest information on VA Cash-Out Refinance eligibility and guidelines. You can find more details on their website: https://www.benefits.va.gov/homeloans/