California Cash Out Refinance
Cash Out Refinance
Refinance and take cash out of the equity in your home.
Learn about the types of cash out refinancing options
People take cash out of their home for many reasons. It is very commonly used for debt consolidation or elimination, including pay off personal debts, credit cards, auto loans, and even student loans. Others cash out refinance to invest, purchase another property, finance home improvements, pay for college, use for emergency funds, or even go on a world cruise. You can use your money for whatever you want.
Types of Cash Out Refinance Programs:
Below is an overview of the different types of cash out refinance programs available:
Conventional Cash Out Refinance
Conventional cash out refinance loans are best for borrowers with good or excellent credit (620 minimum credit score). There is a mandatory 6 month required waiting period after you purchased your home before you can be eligible for a cash out refinance loan.
FHA Cash Out Refinance
FHA loans are a good option for borrowers who do not qualify for a conventional loan. The credit qualification requirements through the FHA are more lenient and less documentation is required. The maximum LTV for the FHA cash out refinance is now 80% (previously 85%). Most FHA lenders will require you to have at least a 600 credit score for the FHA cash out refinance (the minimum credit score requirement of 500 is for purchases, and the FHA streamline does not require a credit check).
VA Cash Out Refinance
Veterans may be eligible to take out up to 100% of their home equity using a VA loan. Some other advantages of VA cash out refinance loans is that there are special low rates, and also do not require any mortgage insurance to be paid. This will save a veteran thousands of dollars over the life of the loan.
You can learn more about each of these types of cash out refinance programs below. If you would like to have a loan representative help you compare your options, we can match you with a mortgage lender.
Frequently Asked Questions
Below are some frequently asked questions about cash out refinancing. You may also view more questions about out refinancing on this cash out refinance FAQ.
Are cash out refinance loans available for investment properties?
Cash out refinancing is available for investment properties, but exclusively on conventional loans. FHA and VA loans are not available for investment properties.
What are the loan limits for cash out refinances?
The loan limits on cash out mortgages are the same as other similar loan types. Conventional and VA cash out loans use the same conforming loan limits as a purchase or rate and term refinance. FHA loan limits are the same on all types of FHA loans.
What options exist for multifamily properties?
Any eligible multifamily property with 2-4 units that is owner occupied (meaning you occupy at least one of the units as your primary residence) can apply for a cash out refinance. As long as your property meets the conventional, FHA, or VA guidelines for a multifamily property, you can cash out refinance. The same LTV restrictions apply, however, the loan limits are higher (please reference the conforming or FHA loan limits for your county).
How long after a purchase can I cash out refinance?
After purchasing your home, you may refinance and take cash out after 6 months. This is known as the “seasoning requirements”. The appraisal is likely to be scrutinized more closely than usual, but assuming you purchased a home for much less than what it is worth, you may be able to cash out refinance after 6 months.