The loan proceeds can only be used to repay the existing VA loan and to the costs of obtaining or closing the IRRRL. Therefore, the general rule is that the borrower cannot receive cash income from the loan. If you already have a VA-backed mortgage loan and want to reduce your monthly mortgage payments or make your payments more stable, a refinance loan with reduced interest rates (IRRRL) may be right for you. Refinancing allows you to replace your current loan with a new one under different conditions.
Find out if you meet the requirements and how to apply. A VA-backed cash out refinance loan allows you to replace your current loan with a new one under different terms. If you want to withdraw cash from your home equity or refinance a non-VA loan to convert it into a VA-backed loan, a VA-backed cash out refinance loan may be right for you. Find out if you are eligible and how to apply for your certificate of eligibility.