A home equity loan allows you to take advantage of the equity you have in your home. This type of loan is also called a second mortgage, because usually you take another loan on top of your existing first mortgage. A home equity loan lets you take out the equity in your home in cash form, to use for any purpose you like.
Unlike credit cards, consumer loans and auto loans, the interest you pay on a home equity loan may be tax deductible. Check with your tax advisor.
If you’d like to take cash out, but don’t want a second mortgage, you may be eligible for a VA cash out loan. This loan pays off your first mortgage with a new, bigger first mortgage, and you take the proceeds as cash at closing, according to the VA Loan Handbook. Get a free quote to see if you are eligible. You can use the money from a cash out loan for debt consolidation, home improvement, college education, investments and more. This quote form takes about one minute to complete.
Most lenders have stopped making home equity loans after changes to the mortgage market in 2007 and 2008. The best place to look for a home equity loan in today’s market at your personal bank or credit union. Usually you must have a lot of equity in your home and stellar credit.
The Department of VA does not offer a home equity loan program. What they do offer is a cash out refinance mortgage loan. The cash out refinance loan allows qualified veterans to refinance their current mortgage for up to 100% of the property’s appraised value. Call 888-516-9990 to find out more about the VA cash out program.