Qualifications for VA Cash-Out Loan
You must have made the last twelve of your mortgage payments on time to be eligible for a cash-out refinance with Strive Lending. This is important because it shows that you are responsible and are able to make your loan payments on time.
Your debt-to-income ratio is the amount of your monthly gross income that goes toward debt. The VA’s acceptable debt-to-income ratio is 41%. Strive Lending can help you figure out what your current debt-to-income ratio is. It’s a complicated process because there are exceptions and variables that can affect your final ratio. If your debt-to-income ratio is higher than the VA’s threshold, you can lower it by paying off debt before applying for your refinance loan. Strive Lending can discuss your options with you so that you will be eligible for a refinance as soon as possible.
It’s important for the lender to check your credit again with a cash-out refinance, since it’s an entirely new loan. Strive Lending checks your credit to make sure that you are still financially stable.
If you’re thinking of applying for a cash-out refinance in the near future, it’s a wise idea to pull your credit reports and check for any inaccuracies. If you find any, those inaccuracies should be disputed and taken care of before you start the refinance process.
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