Good morning,

Wanted to pick the brain of anyone in the Mortgage business regarding options with my VA Loan.

Long story short, I am building a new home in North Texas and currently have a construction loan that will convert to a 30 year loan upon completion this summer at a 5.89% rate.

My question is, as a veteran who has not yet used my VA Loan, is there an option/benefit to go ahead and pay down the house to the upper VA Loan limit (I believe it's ~$700,000).

I may be mistaken, but in theory, since VA Loan is 0% down, does that mean I would be able to pull my 20% down payment from traditional loan out of the house if I refinanced with VA Loan? Or is there any benefits to pursuing this route?

Thanks for any insight!

You would not be able to pull any cash out using a VA loan as the VA does not allow for cash out loans in Texas. But, that is irrelevant in this case anyway because there is a state law that you cannot pull out more then 80% of your value for any loan in Texas.

So, basically, it would just depends on where rates are at the time if it would make sense or not. It would also depend on if you have a disability rating with the VA or not as that would determine if you have to pay a funding fee or not to the VA which can add cost to the loan.

Jay speaks much truth

Also do not forget about that funding fee