Refinance Paid Off Home

One of fastest home loans to approve and process is a cash out refinance on a paid off house.  Our cash out refinance programs provide exceptionally low mortgage rates and great loan terms.  We specialize in providing cash out refinance loans and we will do what we can to earn your business.  Our impressively low interest rates and efficient close times are what differentiates us from other mortgage lenders.  If you “shop around” and compare us to other mortgage lender and banks, you can see for yourself how what makes us one of the best cash out refinance lenders.

If you own your home fully or “free and clear”, meaning you have paid off the property entirely and do not owe anything on the home (or have any outstanding liens), you may qualify to cash out on up to 85% of your equity (unless you are a veteran in which case you may qualify for 100% financing on a VA cash out loan).

How this works, is if you own a $200,000 home and want to cash out up to 85% of the value, you can take out up to $170,000.  The 85% max LTV is industry standard.  Lenders must meet certain loan parameters set forth by the FHA, or else Fannie Mae and Freddie Mac.  We are unaware of any lender that offers an LTV on a cash out refinance that is higher than 85%, which are the rules of FHA-insured loans.

If 80% or less of your home equity is sufficient for the cash you need, it is highly advisable that you refinance with a conventional loan. Why do we make this recommendation? By limiting your loan amount to 80% of your homes value, you can avoid paying mortgage insurance, which is required on all home loans that exceed an LTV of 80%.

If you want to see what you qualify for contact us today.  We can also provide you with a general loan quote without requiring any financial information, including pulling a credit report.  We can provide you with as accurate of a loan and rate quote as possible, but it is not an official approval.  Then, if you like the terms we propose, submit a full application and we will provide you with an official loan approval.

Frequently Asked Questions

How long does the process of a cash out refinance take?

Most cash out refinance loans can close in as little as 7-10 days.  We process things very quickly on our end.  As long as your appraisal does not cause delay, and you submit all required documents in a timely manner, your loan should be processed and closed in less than 2 weeks.  If you are in urgent need of having your loan close, tell your loan specialist and we can see if we are able to put your loan on “urgent status”.

What are the different types of cash out programs available?

There are a total of 3 different types of cash out refinance loans that exist.  These are conventional loans, FHA loans, and VA loans.  For all non-military applicants, FHA and conventional loans are the only two cash out refinance options.  We can help you see if you qualify for both, and what the loan terms would be for each (such as interest rate, closing costs, maximum LTV, and monthly payment).

Do you offer debt consolidation as an option for cash out refinancing?

You can use the funds you receive from cashing out however you want.  If you would like to arrange to pay off debts at closing, this is an option for you.  Or, you can be wired the money in full, and pay off the debts on your own.  Whatever your preference is.

What credit scores are required for your home loans?

All of our home loans, including all cash out refinance programs, require a 620 minimum FICO score.  Higher scores can help your application in the case you need any “compensating factors” to make up for other potential qualification issues.

What is the minimum and maximum loan amounts you offer?

We require a minimum loan amount of $90,000.  We are unable to offer anything lower than this amount.  We can offer the maximum loan amount that you qualify for based on your LTV ratios (loan-to-value ratios), as long as that amount does not exceed the FHA or conforming loan limits for your county.

What are the requirements for employment?

All cash out loans, including FHA, VA, and conventional, will require that you provide proof of 2 years employment.  It is usually acceptable if you have changed jobs, as long as your show steady employment and do not change industries or the line of work too frequently or recently.