Cash-Out Refinance and Purchase Home Loans are two types of VA loans available for Veterans who want to make their dream of home ownership a reality. Purchase Loans are an option for Veterans who have had difficulty obtaining financing and/or are looking to purchase a home at a competitive interest rate. For Veterans who already own a home and want to use cash from their home’s equity to pay off debts, make home improvements or fund education, a Cash-Out Refinance Loan may be worth looking into. This type of loan can also be used to refinance a non-VA loan into a VA loan.
VA loans are primarily handled by private lenders and are backed by the VA Loan Guaranty. This means the VA “stands behind” their loans by guaranteeing a portion of it. The VA loan guaranty acts as “insurance” for a potential lender. If for some reason you cannot keep up your mortgage payments, your lender can go to the VA to cover any losses they incur.
More detailed information about Cash-Out Refinance and Purchase Home Loans are available on the VA’s website. Elder law attorneys typically are knowledgeable about and/or specialize in Veterans benefits, thus they may be able to provide information as well.
