1. What is VA Cash Out Loan?

VA Cash Out refinance allows eligible veterans to refinance their current mortgage and take cash out of their home equity. The VA guarantees these loans, making them attractive options for qualified borrowers.

2. How Does the Calculator Work?

The calculator uses the VA Cash Out formula:

Where:

• Home Value — Current market value of the property
• LTV — Loan-to-Value ratio (as decimal, e.g., 0.90 for 90%)
• Current Balance — Remaining mortgage balance

Explanation: The equation calculates how much cash you can potentially access based on your home equity and VA loan limits.

3. Importance of Cash Out Calculation

Details: Understanding your potential cash out helps in financial planning, debt consolidation, home improvements, or other major expenses while considering VA loan benefits.

4. Using the Calculator

Tips: Enter accurate home value (consider appraisal), current LTV limits (typically up to 90% for VA loans), and your exact mortgage balance for precise calculation.

5. Frequently Asked Questions (FAQ)

Q1: What are VA loan LTV limits for cash out?
A: VA typically allows up to 90% LTV for cash out refinance, but this may vary based on lender and circumstances.

Q2: Are there funding fees for VA cash out?
A: Yes, VA cash out refinances typically have a funding fee ranging from 2.15% to 3.3% of the loan amount.

Q3: Can I do VA cash out more than once?
A: Yes, you can do multiple VA cash out refinances as long as you meet eligibility requirements.

Q4: How is home value determined?
A: Lenders will require an appraisal to determine current market value for cash out refinance.

Q5: Are there credit score requirements?
A: Most lenders require minimum 620 credit score for VA cash out, but some may have higher requirements.