Best VA cash out refinance lenders

[blue129]

I closed on a brand new home back in February with a VA loan...$580k purchase price, paid $510k, currently sitting at $502k. Unfortunately not long after I had some major medical issues and incurred a lot of credit card and personal loan debt, which has tanked my credit score down to 623 (mortgage FICO as of today). Thanks to this crazy market, my house is now worth $650-660k and I'd like to take some of that equity and pay off the higher interest debt so I can get my score back up. 

It looks like most won't touch me for a HELOC or home equity loan due to my score, but some will for a VA cash out refinance. I'm a disabled veteran so I don't have to pay a funding fee, but can anyone recommend a lender who will do a jumbo with my credit score? Especially with an eye on lower closing costs. I currently have one lender that's approved me, but closing costs are around $14k.

Thanks in advance!

[VALoanMaster]

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@blue129 wrote:

I closed on a brand new home back in February with a VA loan...$580k purchase price, paid $510k, currently sitting at $502k. Unfortunately not long after I had some major medical issues and incurred a lot of credit card and personal loan debt, which has tanked my credit score down to 623 (mortgage FICO as of today). Thanks to this crazy market, my house is now worth $650-660k and I'd like to take some of that equity and pay off the higher interest debt so I can get my score back up. 

It looks like most won't touch me for a HELOC or home equity loan due to my score, but some will for a VA cash out refinance. I'm a disabled veteran so I don't have to pay a funding fee, but can anyone recommend a lender who will do a jumbo with my credit score? Especially with an eye on lower closing costs. I currently have one lender that's approved me, but closing costs are around $14k.

Thanks in advance!

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What state are you in? You can't do a VA cash-out refi in Texas and some states, like Florida have added tax stamps that increase your closing costs.

How much are you trying borrow?

Did you do a forbearance on your mortgage when you had your medical issues?

The conforming loan limit is going up so you're probably not going to be a jumbo VA loan.

[blue129]

I'm in North Carolina. Cash outs are allowed here, and no extra taxes, just typical fees and closing costs.

I'd like to cash out about $80k, so that would put new mortgage in $590-600k range (accounting for rolling in closing costs). I did not do a forbearance on my mortgage.

Thanks for any insight!

[VALoanMaster]

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@blue129 wrote:

I'm in North Carolina. Cash outs are allowed here, and no extra taxes, just typical fees and closing costs.

I'd like to cash out about $80k, so that would put new mortgage in $590-600k range (accounting for rolling in closing costs). I did not do a forbearance on my mortgage.

Thanks for any insight!

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Yeah Texas is the only state that limits you to a conventional loan for a cash-out refi.

I asked about the state because 14K is on the high side for closing costs. If you were in a state like Florida, that tax would add $3,000 to your closing costs. I know this because I have a client in FL doing a VA cash-out refi.

At $600,000, your loan will be under the new conforming loan limit which is supposed to be announced any day.

[URHomeInvestments]

Get your FICO up to 650+

Call around your local community banks and credit unions and ask, "With a FICO of ZZZ what rates and terms can you offer me?" This way you won't have a ton of pulls.  PenFed has a great reputation for getting HELOCs done, albeit slowly.  We did a cashout VA on our house and then a HELOC with PenFed.

[MauiMan85297]

You would get killed with that 620-639 score bucket on a VA C/O at 90% LTV or lower- slaughtered at 90.01+ LTV with that score.  1) Your rate is going to be high and your costs just for the rate will be really high unless you take a rate that would be 3%+ to lessen the points you'd pay.

I'd raise the score first or make sure your LTV is under 90%- if you can't wait and don't mind high fees then pull the trigger.

[GracieGrrl]

I'm currently doing a 100% cash out in NC.  My scores are lower than yours and my rate is not sky-high.  I don't think I can say who the lender is in this reply, but you are more than welcome to DM me and I'll share my experience with you.