VA 100% cash out refinance?

Discussion in 'The Pub' started by speedyone, Aug 28, 2013.

  1. speedyone

    speedyone Supporting Member

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    Any lenders out there offering 100% VA cash out refinancing?

    I have done my homework, and this is the best option for me financially. (My wife and I want to stay in our home long-term, due to veteran's benefits I am property tax exempt, exempt from funding fees, we're ok with starting our loan over again at 30 yrs, etc).

    Problem is, I called a few lenders today, and they have given me the run around.

    For example, a recap of a Quicken Loans call today:

    Quicken Rep: "Uh...the VA does not authorize 100%....sure, maybe 80%..."

    Me: "Really? Well I happen to know that in fact the VA has authorized the 100% amount, but lenders have it at their discretion how much they wish to offer based on creditworthiness, veteran disability status, etc, all of which I qualify on."

    Quicken Rep: "Well....MAYBE we can go as high as %90. But that's the ceiling"

    Me: "OK, well, I only have $25,000 equity in my home, which is valued at $152,000 so that's not gonna work. I'd need a higher rate in order to use the cash-out to pay-off my outstanding loans/debts. Thanks for your ti--"

    Quicken Rep: "Wait! Wait! My boss is a veteran, and he takes care of veterans! Maybe we can go a little over 90%! Maybe 92-93%?!"


    Horse crap! I don't wanna freakin' haggle!

    Anyone here know of any legitimate lenders who may offer 100% VA cash out refis? I tried 3 different lenders today, all of them giving me the run-around (yes, I know they're businesses and want to make money).


    Googling just leads me to tons of ads, and I know next to nothing about the banking industry. Therefore, if someone has more inside/professional experiences, please share some potential lenders if you could.

    Thanks for reading guys, and if you think that doing a cash-out refinance is idiotic, (compared to filing bankruptcy, my other choice,) please be courteous enough to PM me instead of posting my foolishness in this thread.

    :)

    Have a good night/day all!
     
  2. thewhit

    thewhit Silver Supporting Member

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    I can't speak to the V.A loan issue but I do not like Quicken and don't trust their tactics. I received an offer to refinance maybe 1.5 years ago from my current lender, one of the top 3 banks. The rate was a bit higher than the going rate but there was no appraisal, no fees of any kind including origination or closing fees....and a relatively quick close.

    We started the process and the very next morning, by special delivery, I get a packet from Quicken promising me better everything and extolling the benefit of working with them. I bit and called them back and after a few discussions found out they get an advisement from one or more of the big credit reporting agencies, when an individual's mortgage holder does a credit check request.......essentially they have spies tipping them off.

    In short they ended up turning me down for whatever reason I don't know as I have good credit and a good amount of equity etc. but they tied it up long enough to where I lost out on the deal with my own bank as the offer they gave me expired.

    After the dust settled, months later I re-fied two loans with two different banks I was already with no problem but the Quicken Tactics and involvement I had with them puts them at a 0 rating in my book.

    By the way most banks are just middle men for govt. backed loans and get a cut to write and monitor the loans but they rarely use their own cash.
     
  3. speedyone

    speedyone Supporting Member

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    anyone else have leads?
     
  4. Blue Strat

    Blue Strat Member

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    Does this mean you'd want to refinance and have zero equity in your home? if so, it sounds like an idea that should have died in 2008 or, realistically, since the beginning of time.
     
  5. Route234

    Route234 Member

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    Id only do it as a last resort. Im kind of amazed that any lenders would do what you are talking about here.
     
  6. Rick Lee

    Rick Lee Member

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    VA loans do allow 100% financing for purchase, actually 102%, IIRC, since you can roll in the funding fee. So if someone has lived there a while with a perfect payment history, a 100% cash-out refi is no more risk to the bank or VA than it was at purchase time. I wouldn't want to do it. But it's not a big deal.
     
  7. chrisr777

    chrisr777 Member

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    Getting loans from banks these days is like pulling teeth. Try a credit union.
     
  8. Blue Strat

    Blue Strat Member

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    Maybe no more risk, but still a horrible idea. Evidently, since no lender seems to offer this, I'm not alone in thinking so.
     
  9. Slaphappy

    Slaphappy Member

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    Was this a loan restructure?
     
  10. Rick Lee

    Rick Lee Member

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    If the VA insures it (and I don't know if they allow 100% cash-out refis), then it's no risk at all to the bank. I don't know why the bank would care. Ditto with FHA. HUD insures those loans. So, as long as they're underwritten to the FHA guidelines and there's no fraud or negligence on the bank's part, they don't lose anything if the loan doesn't perform. They file a claim with FHA and get paid. I think VA works the same way.
     
  11. Blue Strat

    Blue Strat Member

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    ^^^ Right, and defaults (of ANY kind), magically, don't affect anyone but the borrower. Do we really need to review this?
     
  12. Rick Lee

    Rick Lee Member

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    Oh, no. Defaults very much do affect the taxpayers IF they go beyond the insurance pool's resources. I don't know what the VA's funding fee insurance pool looks like these days, but FHA was in the red for a while and thus doubled their upfront and monthly MIP rates. So it's not necessarily taxpayers who are paying for FHA defaults; it's new borrowers who get FHA loans. If VA raises their funding fee, then it would be new VA borrowers who pay. I don't think you can use your VA benefit more than once, but you can buy with FHA loans on more than one property, as long as you don't own them at the same time.
     
  13. Blue Strat

    Blue Strat Member

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    ^^^ Somehow, I can't believe that tax payers aren't on the hook.

    Regardless, promoting bad behavior (0% equity) is a very bad idea. Does anyone bother checking how much money they waste on PMI?
     
  14. niersbach

    niersbach Member

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    Ummm...its a VA loan...there is no PMI...its insured by the VA....its one of the benefits of being a VETERAN....

    To the OP...look into USAA, Navy Federal, or MArine Federal...mine was done through USAA for my last 2 homes...both 100% financed...same with my recent refi, which to be honest was probably a 140% refi if they would have done an appraisal on the home at current market value...it was a streamlined refi though the VA and lowered my rate by 2 percent at zero cost to me. Like you, I am a disabled vet and dont have to pay the VA funding fee...so its a no brainer for me.

    For those that say its such a risk...its ZERO risk to me...if I dont make my payment and lose my house, I have ZERO tied up in it...so what do I lose?? If I put 20% down and lose my house what do I lose...well honestly...20%!!!
     
  15. Route234

    Route234 Member

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    Risk or not, owning a home with no equity or using your equity all up isnt wise financially and should be avoided barring few situations. Borrowing beyond your homes value has caused many people to foreclose or go bankrupt or both. You will lose $ and have to file for bankruptcy and have your credit ruined and you wont be able to buy another house for 3-7 years so the notion that you cant "lose" seems far fetched to me.
     
  16. speedyone

    speedyone Supporting Member

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    Thanks all for your input.

    I have 25k in medical debt (after insurance paid), monthly payments costing me $900 per month.

    This 25k is composed of 3 personal loans. I have NO MONEY for any expense that would come up....car dying, AC dying, you name it. No savings per month. Don't wanna file bankruptcy. Not eligible for any other financial aid, at the limits of what I and wife can ear/work.

    The cash out refi seems like a good idea, as I would then end up saving $900 per month for emergency expenses.

    Not planning on ever selling my home to move, as I love it.

    Thanks again for sharing...on my work break, will check back in later! Have a good night!
     
  17. Blue Strat

    Blue Strat Member

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    Thanks for sharing. Exactly my point. Worst possible idea, ever.
     
    Last edited: Aug 28, 2013
  18. speedyone

    speedyone Supporting Member

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    Anyone else have any ideas for Lenders? Do I just call up every bank in my city and see who does VA loans? For those who think that a cash-out refi is a horrible idea, do you have any other ideas for me?

    Thanks for your time folks!
     
  19. Blue Strat

    Blue Strat Member

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  20. speedyone

    speedyone Supporting Member

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    Thank you Blue Strat.

    I did a quick google search, as you linked above, and did contact VAMortgageCenter, Quicken, and some others.

    As this process is new to me, it seemed as if all these contacts just wanted to "sell me" things, and didn't listen to my needs.

    However, I should just contact my local Sarpy County VA office; they may have some appropriate info for me... I didn't think of that obvious one!

    I am in a tight fix now, but do not wish to simply "wipe out" my financial responsibilities with a bankruptcy.

    Thanks again for everyone's input.

    :)
     

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