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VA cash-out

VA cash-out refinance

A VA cash-out refinance pays off the current loan and can give you the difference, up to what the lender and the appraisal allow.

Guidelines often land between 90% and 100% of value. That range is a guideline, not a promise on your house. The loan must still be a primary residence, and a full credit package is required — this is not an IRRRL.

Seasoning rules apply, including a waiting period after the purchase.
A net tangible benefit test still exists, even when you are taking cash.
The funding fee is higher than an IRRRL and depends on prior use. Exempt Veterans skip it.
Cash can pay off other debts or fund a project. It increases what you owe.

The lender’s current LTV cap applies. It is not a promise on your house.

Questions

Straight answers

How much equity can I take?

Up to the lender’s maximum loan-to-value, often discussed from 90% to 100%. It depends on the appraisal and the guideline in force.

Can I cash out a non-VA loan into a VA loan?

Often yes, if you are eligible and the home is your primary residence.

Do I need an appraisal?

Yes. Cash-out is a full refinance.

Will my payment go up?

It can, because the balance goes up. We show the new payment before you proceed.

Is there mortgage insurance?

No monthly MI. There may be a funding fee.

How long does it take?

Similar to a purchase file, often a few weeks after documents and the appraisal are in.

Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026