ENHANCEMENT OF REGULAR REFINANCING LOANS:

Section 504 of Public Law 110-389 made changes to VA’s regular ("cash-out") refinancing loans. Effective immediately(October 16, 2008), the maximum guaranty amount for regular refinancing loans is the same as the maximum guaranty amount for purchase loans. Regular refinancing loans are now available for up to 100 percent of the appraised value of a home, which is an increase from VA’s previous threshold of 90 percent. All other VA program requirements for regular refinancing loans remain the same.