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Veterans – Get 100% of the Cash Out of Your Home

Veterans – Get 100% of the Cash Out of Your Home

The U.S. Department of Veterans Affairs now offers a 100% Cash-Out Refinance Loan to eligible veterans. If you’re a veteran, or a surviving spouse, you now have a wonderful opportunity to use up to 100% of your home’s equity for paying off debt, paying college tuition, or just about any other purpose.

The reason lenders are willing to lend on these higher equity cash out loans is because the loans are backed by the VA.

How the 100% cash out program works

The 100% VA Cash-Out Refinance Program requires that you have sufficient income and that the loan is for a home that you’re occupying. In addition, you need the following:

Credit score of 620 or above –The VA has always allowed 100% financing with lower scores. But just about every lender capped themselves at 90 to 95% for cash VA loans with higher credit scores of 640+.

But recently, due to major changes in the industry, lenders have loosened their guidelines on VA loans. We can now lend to 100% on a VA cash out loans with a minimum credit score of 620 – which makes the Cash-Out Refinance program a truly amazing opportunity.

If you have a score lower than 620, we can still work with you. Meridian offers lower percentage (i.e. 80%) VA cash out options. Please inquire!

Certificate of Eligibility(COE) – To begin the process, you must first complete the COE (VA Form 26-1880) as well as provide evidence that you meet the eligibility guidelines spelled out below. The COE verifies to lenders that you’re eligible for a VA-backed loan.

We can help you with this form – just call us. We do ask for a copy of your DD214 (and sometimes we don’t even need that), then we pull your COE and determine eligibility.

How eligibility is determined

The VA determines eligibility using a number of factors, but in general, you’re eligible for the VA Cash-Out Refinance Program if you fall under one of the following requirements:

  • You were an active-duty veteran who served a minimum of 90 consecutive days in wartime
  • You were an active-duty veteran discharged during or after WWII without a “dishonorable” status
  • You were a peacetime veteran who served 181 consecutive days
  • You served for two years, either as an enlisted veteran with service dates after 1980, or an officer with service dates after 1981
  • You served 6 years in the Selected Reserves or National Guard
  • You’re the spouse of a deceased veteran with a service-related death and you have not re-married, or you’re a spouse of service person missing in action or a prisoner of war.

Eligibility may also be established for U.S. citizens who:

  • Served in the armed forces of a government allied with the U.S. in WWII
  • Served as a member in certain organizations, such as officers in Public Health Service, cadets in U.S. military, Air Force, or Coast Guard, midshipmen at the U.S. Naval Academy, officers in the National Oceanic and Atmospheric Administration, and merchant seamen in WW II service.

We’ll pay your appraisal fee

If you’d like help with obtaining a VA Cash-Out loan – or with determining your eligibility – please call us at 877-878-0100 or complete our contact form. We can help you complete the COE or answer any questions you have.

In addition, if you close your VA loan with Meridian, we’ll pay your home appraisal fee up front. It’s our way of thanking you for your service to our country.