You've built up equity in your home through years of payments and rising property values. Now you can put that equity to work for your family with a VA Cash-Out refinance.
What Is a VA Cash-Out Refinance?
A VA Cash-Out refinance replaces your current mortgage with a new VA loan, giving you cash from your home's equity. You don't need a VA loan now to qualify. Whether you have a conventional, FHA, or USDA loan, you can turn a non-VA loan into a VA-backed loan and access your equity.
The Department of Veterans Affairs guarantees these loans, reducing lender risk. Certain VA Cash Out Loans allow you to borrow up to 100% of your home's value, although most lenders cap VA Cash Out Refinance loans at 90% loan-to-value.
Benefits of VA Cash-Out Refinancing
● Access Up to 100% of Your Home's Value: VA cash-out refinancing can finance up to 100% of the VA‑established reasonable value of the property, including the VA funding fee.
● No Private Mortgage Insurance (PMI): VA home loans do not require private mortgage insurance (PMI) or monthly mortgage insurance premiums, even with no down payment, because the VA guarantee and funding fee replace the need for ongoing PMI.
● Competitive Interest Rates: With a portion of the loan guaranteed by the VA, lenders are able to offer competitive interest rates.
Limited Closing Costs: Not only can the VA Funding Fee be rolled into your loan, but there are limits to some closing costs typically associated with a loan.
Flexibility Benefits for Your Unique Situation
● Refinance Any Loan Type: You may be able to turn a non-VA loan into a VA-backed loan.
● Flexible Credit Requirements: VA loans often have flexible credit requirements, and NewDay’s VA lenders look at your whole financial picture, not just your credit score.
● No Prepayment Penalties: Pay off your VA loan early without any penalties or fees. This gives you the freedom to make extra payments or pay off your loan completely if your financial situation improves.
● Use Your Benefit Multiple Times: You can use the VA loan guarantee multiple times throughout your lifetime, though you may need to restore your entitlement between uses by paying off previous VA loans or selling the property.
Application and Process Benefits
- No Out-of-Pocket Costs to Apply: NewDay USA will pay your appraisal and inspection fees upfront. All costs and fees can be financed into your loan, making it easier to get started.
- Fast Processing and Funding: Just four business days after closing your loan, the money can be in your hands ready to use however you need it. At NewDay USA the entire process typically takes just 30-45 days.
- Expert Veteran Support: NewDay USA VA Loan experts can help you every step of the way. They understand military life, frequent moves, and the unique challenges Veterans face.
Financial Benefits
- Debt Consolidation Savings: Consolidate high-interest credit cards into your mortgage at today's lower VA rates.
- Build Financial Security: Create an emergency fund without touching retirement accounts or selling investments. Having three to six months of expenses saved provides peace of mind for your family.
- Home Improvement Investment: Use cash to increase your home's value through renovations while enjoying improvements immediately. Kitchen and bathroom updates can provide both lifestyle benefits and increased property value.
- Tax Advantages: Mortgage interest may be tax-deductible, unlike credit card interest. Consult with a tax professional about your specific situation.
Who Qualifies for VA Cash-Out Refinancing?
You've earned this benefit through your service. Eligible Veterans may include:
● Active-duty service members
● Veterans with honorable discharge
● National Guard members and Reservists with sufficient time served
● Surviving spouses of eligible deceased Veterans
● Spouses of MIA/POW service members
Credit and Financial Review
Even if you've had credit challenges, give us a call. Veterans are 5x more likely to get approved for a VA Cash-out Loan with NewDay.
What You'll Need to Apply
Getting started with NewDay USA is simple. We’ll help you every step of the way.
Certificate of Eligibility (COE): This confirms you qualify for the VA home loan benefit.
Basic financial documentation: This typically includes recent pay stubs (about 30 days), W‑2s and/or tax returns in some situations, and documentation of any retirement, Social Security, or VA disability income. Your NewDay team will let you know exactly what is needed for your situation.
- For refinance loans: Your most recent mortgage statement and homeowners insurance information may also be required.
At NewDay USA, there's no out-of-pocket expense required to close your loan.
Understanding the Costs
VA Funding Fee
The VA funding fee is a one-time payment that helps keep the program running. The fee can be rolled into your loan, so you don't pay it upfront.
You may not have to pay a VA funding fee if you're:
● Receiving VA compensation for a service-connected disability
● Eligible to receive VA compensation but receiving retirement or active-duty pay instead
● A surviving spouse receiving Dependency and Indemnity Compensation (DIC)
● A service member with a Purple Heart
Closing Costs at NewDay USA
At NewDay USA, we make it simple to close your loan without a single dollar out of your pocket. We'll pay your appraisal and inspection fees upfront, and everything can be financed with your loan.
The loan origination fee is limited to a maximum of 1% of the loan amount, one of the VA loan benefits that helps keep your costs down.
Interest Rates
Call one of our Veteran Loan Experts to see how low we can go for you. VA loans offer competitive interest rates.
The NewDay USA Difference
● No Money Out of Pocket to Apply We pay for your appraisal and inspection fees upfront. Everything can be financed into your loan.
● Fast Cash Access Just four business days after closing your loan, the money can be in your hands ready to use however you need it.
● Veteran-Focused Service Since 2009, we've helped over 100,000 Veteran families get the most out of their VA Benefits. Serving Veterans is all that we do.
The Process
Contact Our VA Cash Out Refinance Team: A friendly NewDay VA Loan Expert will help you every step of the way. Call 800-405-4187 or get started online.
No Money Out of Pocket to Apply: At NewDay USA, we make it simple to close your loan with no out-of-pocket costs. We'll pay for your appraisal and inspection fees upfront.
Find Out How Much Cash You Can Get: Once your appraisal is complete, we'll let you know how much equity you can turn into cash - up to 100% of your home's equity.
- Get Your Cash: For most VA cash‑out refinances, funds are available a few business days after closing; exact timing may vary.
Your Next Step
At NewDay USA, we honor your service and sacrifice and want you and your family to access all the benefits you deserve. You've earned the right to use your VA benefits to their fullest.
The NewDay 100 VA Cash Out Loan can provide the cash you need for whatever's important to your family, whether you want to pay off high-rate debt, renovate your home, or put money in the bank. We're proud to help Veterans get the financial security and peace of mind they deserve. Serving Veterans is all that we do.
Contact our VA Cash Out Refinance Team today: Call 800-405-4187 or Get Started Online
FAQs
Do I need to have a current home loan?
No. You may still be able to turn a non-VA loan into a VA-backed loan. Find out if you're eligible.
Will I need a new appraisal?
Yes, you will need a new appraisal to get a NewDay 100 VA Cash Out loan. To make it easier for Veterans, we will pay upfront for the appraisal, and there will be no out-of-pocket cost to apply.
What if I have less-than-perfect credit?
Even if you've had credit challenges, give us a call.
What's the current interest rate?
Call one of our Veteran Loan Experts now, and we'll see how low we can go for you.
How much cash are Veterans getting?
Your amount depends on your home's value and current mortgage balance.
