{"id":35315,"date":"2018-03-07T14:48:39","date_gmt":"2018-03-07T14:48:39","guid":{"rendered":"https:\/\/one.sightlinemg.com\/armytimes\/uncategorized\/2018\/03\/07\/va-backed-cash-out-refinancing-7-things-to-know\/"},"modified":"2026-08-08T06:49:10","modified_gmt":"2026-08-08T06:49:10","slug":"va-backed-cash-out-refinancing-7-things-to-know","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/armytimes\/home-hq\/2018\/03\/07\/va-backed-cash-out-refinancing-7-things-to-know\/","title":{"rendered":"VA-backed cash-out refinancing: 7 things to know"},"content":{"rendered":"\n

Most VA-backed loan customers use their benefit to buy a home or secure a new loan with a lower interest rate. But the use of other loan options, specifically cash-out refinancing, has more than doubled since 2012.<\/p>\n\n\n\n

Nearly 137,000 VA-backed loans for cash-out or other refinancing products were issued in fiscal year 2016, the latest year for which figures are available. Only 56,525 such loans went out in fiscal 2012.<\/p>\n\n\n\n

Compare those figures with the 215,561 interest rate reduction loans<\/a> and 353,002 purchase loans with VA backing in 2016, and it\u2019s clear that cash-out products have become a larger piece of the VA loan<\/a> pie. If you\u2019re in the market for one, here are some basic details from official VA sources, including their Lenders Handbook<\/a>:<\/p>\n\n\n\n

1. What you DON\u2019T need: <\/b>Unlike VA\u2019s Interest Rate Reduction Refinance Loan, you aren\u2019t required to have an interest rate lower than the existing rate. You also aren\u2019t required to have lower monthly payments than an existing loan to secure VA backing.<\/p>\n\n\n\t