VA cash-out refinance
Refinance any mortgage into a VA loan and turn home equity into cash for debt payoff, repairs or other goals, without monthly mortgage insurance.
Written by the FLO Mortgage team · Licensed mortgage broker, NMLS #1835856 · Updated October 2026
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At a glance
- Refinance VA, FHA, conventional or USDA loans
- VA allows up to 100% of value
- No monthly mortgage insurance
- Funding fee waived for exempt veterans
Talk with a licensed loan officer
VA refinance
A VA cash-out refinance replaces your current mortgage with a new VA loan and lets you take some of your home equity as cash. You can use it to pay off higher-interest debt, fund repairs or improvements, cover education costs, or simply move from an FHA or conventional loan into a VA loan with no monthly mortgage insurance.
Two kinds of VA cash-out refinance
Type I: switching into a VA loan
You replace a non-VA loan with a VA loan without increasing your balance beyond payoff and costs. Many homeowners do this to drop FHA mortgage insurance.
Type II: taking cash out
Your new loan is larger than what you owe, and the difference comes to you at closing after costs.
Both are full refinances: you'll need a Certificate of Eligibility, an appraisal, credit and income review, and VA residual income standards.
Protections built into VA refinances
- The lender must show the refinance gives you a net tangible benefit, such as eliminating mortgage insurance, lowering your rate, or moving to a fixed rate.
- You receive a comparison of your old and new loans, including how long it takes to recoup closing costs.
- Seasoning rules prevent rapid repeat refinancing of the same loan.
Is cash-out the right move?
Turning home equity into cash adds to your mortgage balance and is secured by your home. It often makes sense to consolidate high-interest debt or to fund improvements that add value, but it is worth comparing with a home equity line of credit, which leaves your first mortgage untouched. If your only goal is a lower rate on an existing VA loan, the VA IRRRL is usually simpler.
A FLO Mortgage loan officer can lay out the options side by side so you can choose with the numbers in front of you.
Questions, answered
How much can I borrow with a VA cash-out refinance?
The VA allows up to 100% of your home's appraised value. Many lenders set their own limit, often 90%, so the amount available to you depends on the lender and your appraisal.
Can I refinance an FHA or conventional loan into a VA loan?
Yes. A VA cash-out refinance can replace any type of mortgage, whether or not you take cash out. The VA calls a no-cash version a Type I cash-out refinance.
What is the funding fee on a VA cash-out refinance?
It is 2.15% of the loan amount for first-time use and 3.3% for subsequent use, unless you are exempt. It can be financed into the loan.
Do I have to live in the home?
Yes. A VA cash-out refinance requires that you occupy the home as your primary residence.
Is there a waiting period?
If you are refinancing an existing loan, the VA requires at least 210 days after the first payment due date and six consecutive monthly payments.
More VA loan guides
- VA home loans overview
- VA loan questions, answered
- VA loan tools and calculators
- VA home buying roadmap
- VA loans for first-time buyers
- VA loans for active duty
- VA loans for Guard and Reserve
- VA appraisals and property requirements
- VA closing costs and seller concessions
- VA occupancy rules
- VA entitlement and second VA loans
- Assumable VA loans
- VA condos and property types
- VA manual underwriting
- Disabled veteran property tax exemptions
- VA streamline refinance (IRRRL)
- VA funding fee exemption
- VA loans for surviving spouses
- VA residual income explained
- VA loans after bankruptcy or foreclosure
Local VA loan help
Talk to a FLO Mortgage loan officer
Every FLO loan officer helps veterans, service members and military families with VA loans. Have a question these guides don't answer? Ask our team.
This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Lender requirements may be stricter than the program guidelines described here. Not all applicants will qualify. Figures reflect 2026 VA guidelines and may change without notice. FLO Mortgage is licensed in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. Company NMLS #1835856. Equal Housing Opportunity. FLO Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. Licensing & Disclosures.
Local, licensed help
Talk a VA loan through with a FLO loan officer
Every FLO Mortgage loan officer can walk you through this program, run the numbers for your situation and compare it with your other options. Have questions? Call our main office at (386) 882-9980.
Ready to see your numbers?
Answer a few quick questions and a local loan officer will follow up with your options.