VA Cash Out Refi after MLS listing

1 Reply

We are looking into a VA cash out refi. We recently had our house on the market. We were thinking about selling paying off some debt and building . After looking at prices we have decided to stay put. So instead we want to do cash out and pay some bills and do some upgrades.

I have obtained 4 rates from 4 different lenders. 

The one I decided to go with was the best rate. Everything was going good. I got off the phone. He text back 30 min later stating they couldn't procede with the loan because the VA required a 6 month cool off after a house has been listed.

So I spoke with the other lenders and they told me they have not had that issue. I called the VA and was told there is not such a policy on there side. They told me it must be the lenders policy but no a VA policy .

Has anyone else heard of this? If so is there a reference for it?

@bradley r

Sounds like you've run into an overlay. Many lenders have overlays. They are put in place by that individual lender and it has nothing to do with VA. It has to do with loan performance. Essentially, if your loan pays off early, they make less money.


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