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Great News - 100% VA Cash Out Refinance - Coming January 3, 2011

The VA Loan guidelines consider a VA Refinance to be cash out even if you're not receiving cash back at closing or paying off non-mortgage debt if you're not doing a VA IRRRL.

In most cases lenders will limit your new VA Loan to 90% of your home's appraised value even though the actual VA guidelines allow up to 100%! For example; If your home appraises for $300,000.00, the maximum loan amount would be $270,000.00 or 90% of $300,000.00.

Now let's say you just want to refinance your current non VA Loan to a new VA Loan. Under the VA guidelines this would be considered a cash out refinance and limited to 90% of the appraised value due to lender guidelines UNTIL NOW!

The good news is we now have that ability to refinance an existing non VA Loan in to a new VA Loan at 100% of the appraised value and 95% maximum loan to value for true cash-out transactions providing cash back to the borrower and/or paying off non-mortgage debt consolidation . This is up from the previous 90% limit!

For more information regarding the VA cash out refinance to 100%, please go here.

Program details are below for this incredibly easy VA Refinance. We lend nationwide!

VA Cash Out Refinance Highlights:

One of the only programs left that will allow 100% financing on a refinance of an existing mortgage.

Qualification requirements:

1. Must be currently employed.

2. 620 or better middle credit score.

3. No late payments on your mortgage over the past 12 months. One 30 day late may be acceptable with explanation.

4. No liens on your home currently.

5. Must be able to document income.

We will now permit the following increased loan to value (LTV) for VA cash-out transactions.
o Maximum loan to value for cash-out transactions in which the borrower pays off only the mortgage lien(s) and finances closing costs, pre-paid expenses and discount points - 100% of the appraised value of your home.
o Second mortgages being paid off must be seasoned at least one year and may not have had draws in the most recent 12 months unless the draws were for documented home improvements.
o Minimum credit score for 1-2 unit properties - 620
o Minimum credit score for 3-4 unit properties - 640

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