Government-Backed Loan
VA Cash-Out Refinance
Turn your home equity into cash, or move an FHA or conventional loan into a VA loan, while keeping the VA benefits you earned.
- ForEligible veterans, service members, some surviving spouses
- Current loanVA, FHA, conventional or other
- Mortgage insuranceNo monthly premium
- PropertyPrimary residence
How It Works
Your equity, with VA terms.
A VA cash-out refinance replaces your current mortgage with a new, larger VA loan and pays you the difference. It also works with no cash at all, to move a non-VA loan into a VA loan and drop monthly mortgage insurance.
- 01
We confirm eligibility and equity
Your Certificate of Eligibility shows your entitlement, and the lender handles requesting it. We look at your current balance and estimated value to see how much equity is available.
- 02
The home gets a VA appraisal
Unlike an IRRRL, a cash-out refinance needs a VA appraisal, which sets the value the new loan is based on.
- 03
We price it across our lenders
The VA allows borrowing against a high share of value, but lenders set their own limits and pricing. We compare them and run the VA's net benefit test with you.
Program Highlights
Why veterans choose a VA cash-out.
- Taps home equity with a VA loan and no monthly mortgage insurance
- Can refinance an FHA, conventional or other loan into a VA loan
- The VA allows borrowing against a high share of value; lender limits vary
- The funding fee can be financed, and exempt borrowers pay none
- Must meet the VA's net benefit and disclosure rules for refinances
- Cash can be used for repairs, debt, education or other goals
Common Questions
What veterans ask about VA cash-out loans.
It is a refinance that replaces your current mortgage with a new VA loan. If the new loan is larger than what you owe, you receive the difference in cash. It can also be used without taking cash, to move a non-VA loan into a VA loan.
It depends on your home's appraised value, what you owe, your credit and the lender. The VA allows borrowing against a high share of the home's value, but many lenders set lower limits. We compare lenders to find the most room for your situation.
Yes. If you are eligible for VA, a VA cash-out refinance can replace an FHA, conventional or other loan, even if you take little or no cash. Many borrowers do this to drop monthly mortgage insurance.
You need a Certificate of Eligibility, income and credit that meet lender standards, a VA appraisal, and the home must be your primary residence. Under current VA rules, the refinance must also meet the VA's net benefit test and seasoning requirements, and you receive a disclosure comparing the new loan with your current one.
Yes, unless you are exempt. The fee depends on whether you have used the benefit before and can be rolled into the loan. Under current VA rules, veterans receiving VA disability compensation, surviving spouses receiving Dependency and Indemnity Compensation, and certain other borrowers are exempt.
It depends on your current rate. A cash-out refinance replaces your whole mortgage, so it often makes sense when the new rate is close to or below your current one. If your first mortgage has a low rate you want to keep, a HELOC may cost less overall. We can price both side by side.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
See your VA cash-out options across 50+ lenders.
Tell us what you owe, what the home might be worth and what the cash is for. We will show you what a VA cash-out would look like.