VA Equity Loans
What is an Equity Loan
A home equity loan could either be a mortgage or a line of credit. They both use the home as security for a new loan. Most often a home equity loan refers to a fixed interest loan with an original balance that can include the closing costs. In essence it's a mortgage not a line of credit. It could be a first loan or a loan taken behind another first (or second or third , etc).
VA Refinancing Basics
As we discussed earlier, the VA offers two kinds of refinances. A Streamline or Rate Reduction Mortgage to lower the payments of an existing VA loan.
The 2nd kind of VA Refinance is a fully qualifying loan based on 90% of your home's current value. The proceeds of this loan can be used for almost any purpose and the rates and fees for a VA refinance will almost certainly be lower than for any other kind of refinance.
Using the Fully Qualifying VA Refinance as an Equity Loan:
It is very common for Veterans and active duty military to use their VA Home Loan Benefit as an equity loan. This loan will pay off the existing loans and get cash to the veteran over that amount and up to 90% of the appraised value. The veteran must qualify based on income and credit just as if they were applying for a new loan to purchase a home.
We can provide you with a VA Equity Loan with very low and even no closing costs. Call now with any questions: (800) 246-8708 or simply fill out our online application for a quick response.