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100% cash out finance (not refinance)

if i buy a home with cash, can i then take out a va loan and get 100% of the appraised value in cash? by rory.r_537_691 from Glen Carbon, Illinois. Nov 6th 2011 Reply


Sam Perez (SamPerez)
#47 ranked lender in Illinois - 34 contributions

Hi Rory - thanks for the question. Under current VA guidelines you can technically cash-out 100% on a new loan, however what VA says and what actual lenders offer is slightly different. Most Lenders have 'overlays' on agency guidelines which means they add certain requirements or restrictions to the loans they originate above and beyond what agency guidelines call for.For the most part currently you can cash-out put to 95% of the value of the home which is our current overlay, I've seen other lenders still offering only 90% cash-out and some advertising 100% but I'm not sure how true the latter is. So, the direct answer is - it partly depends on which lender you go with - overall you should currently be able to cash-out up to 95% with no issues.Enjoy the weekend!Sam

Nov 6th 2011
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Richard Glover (rglover)
#36 ranked lender in Illinois - 69 contributions

Perhaps you would qualify for a usda loan with 100% financing to purchase the home. We can process a transaction quickly! If you'd like to discuss call me at 800 365 3539. I'm an I'LL licensed and based lender.

Nov 6th 2011
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,828 contributions

The short answer is No, or probably not. If this home is your primary residence and you are a veteran eligible for VA financing, you could purchase this home and obtain 100% financing. However, once you own it, the loan type becomes refinance, and in your case, a cash out refinance. Lender Overlays (additional restrictions placed by the lenders making the actual loan) restrict cash out financning to a maximum of 95%. I am not aware of any lenders or investors that will cash out to 100%. If you are looking to maximize your lending options, you should arrange for the VA financing to make the purchase.

Nov 6th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Like the other posts above.. you probably cannot do 100%, and you also might want to check with your tax advisor, there might be tax consiquenses if you refinance after an all cash purchase. You also might want to look at a first position Home Equity Line of Credit (HELOC). This will give you access to your cash, and give you more control. Check with a local mortgage broker, not a bank, and let them guide you to the best product for your particular scenario. WilliamAcres.com

Nov 6th 2011
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,002 contributions

Seems we are missing part of the picture. Why are you paying cash, then wanting to take the money right back out? Why not just buy it with the 100% VA loan and avoid all the hassles of cash-out refinancing rules. Contact a local NMLS LICENSED (not simply registered) Loan officer who provides VA loans to discuss your options.

Nov 7th 2011
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It's a foreclosure and the seller bank doesn't want to take a va loan because they don't want to have to do any repairs.

Nov 7th 2011
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Jeff Hutchison (jhutchison)
#14 ranked lender in Iowa - 40 contributions

Hi Rory, you can never ever refinance at 100% of the value of the home unless it is an FHA streamline refinance, VA IRRRL, DU refi+, Freddi Mace open relief, or USDA. None of these however will allow cash out up to 100%. Buying a rehab and then fixing it up and cashing out is how many fraudulent transactions occured resulting in massive forclosures. No lender that I know of will allow you to purchase, repair, and cash out within 6 months.

Nov 7th 2011
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