The VA cash-out refinance replaces your current mortgage — VA, FHA, conventional or other — with a new VA loan. You can take cash out for debt payoff, home improvements or anything else, or simply move a non-VA loan into the VA program to get rid of mortgage insurance. VA allows borrowing up to 100% of the appraised value, though many lenders set a lower cap.
Estimate your home’s value and payoff. The difference is your potential equity to access.
Read the video script
Your home equity is real money — and the VA cash-out refinance is one of the best ways to reach it. I’m Shirley Mueller.
Here’s the idea. Your home’s worth $400,000 and you owe $250,000. That gap is your equity. VA lets you refinance up to 100% of the value — many lenders go to 90.
Two flavors. Type I: you move a loan into VA without borrowing more — perfect for getting out of FHA mortgage insurance. Type II: you take cash out.
If you receive VA disability compensation, there’s no funding fee at all.
Before you do this, compare it to a HELOC — if your current rate is really low, keeping it might be smarter. I’ll run both for you.
Type I vs. Type II
Type I cash-out refinances a loan into VA without increasing the balance beyond the payoff — the classic example is moving from an FHA loan to a VA loan to drop FHA’s monthly mortgage insurance. Type II means the new loan is larger than the payoff, so you receive cash or pay off other debts. Both are VA cash-out loans with the same funding fee and appraisal rules.
Requirements
- You must live in the home as your primary residence
- Seasoning: 6 payments and 210 days on the loan being refinanced
- Full credit and income review with VA residual-income standards
- VA appraisal
- A net tangible benefit, such as eliminating mortgage insurance, a lower rate, a shorter term, or receiving cash for a stated purpose
Funding fee
2.15% for first use and 3.3% for subsequent use, with no reduction for equity. Veterans receiving VA disability compensation are exempt — which makes a VA cash-out one of the cheapest ways to access equity for many disabled veterans.
VA cash-out vs. a HELOC
A HELOC keeps your first mortgage and adds a second, usually variable-rate, lien. A VA cash-out replaces your first mortgage with one fixed-rate loan. If your current rate is far below today’s rates, a HELOC or home equity loan may cost less overall; if your current rate is similar or higher, or you carry mortgage insurance, a VA cash-out often wins. Compare the blended cost, not just the rate.
VA funding fee calculator (2026)
Down payment only affects purchase and construction loans. Estimate only — your Loan Estimate is the final word.
What veterans say about working with Shirley
4.9 95 Google reviews“We have had the pleasure of working with Shirley on several home purchases and refinances, and she has consistently proven to be the best professional we've ever partnered with. Shirley's honesty and ability to present the best scenarios tailored to our needs has surpassed our expectations each time. She consistently goes above and beyond in customer service, giving us complete peace of mind about the final outcomes. We cannot recommend Shirley highly enough and she will always be our first choice when considering mortgage companies.”
October 2024 · Google review
“I recently worked with CrossCountry Mortgage and Shirley Mueller for a VA refinance, and I couldn't be happier with the experience! Shirley was incredibly knowledgeable and guided us every step of the way, making the process smooth and stress-free. Her attention to detail and dedication to our needs truly set her apart. Thanks to her efforts, we closed on our refinance seamlessly. I highly recommend Shirley and CrossCountry Mortgage for anyone looking for a reliable mortgage partner!”
September 2024 · Google review
“I recently worked with Shirley Mueller and her team, and I couldn't be happier with the experience. After shopping around with five different lenders, Shirley not only offered me the lowest rate but also provided exceptional service. She was incredibly responsive throughout the entire process, answering all my questions promptly and ensuring that everything went smoothly. I highly recommend Shirley and her team for anyone looking for the best rates and top-notch customer service!”
August 2024 · Google review
Real Google reviews of VALoansTexas.com, shown word for word. Team members named in reviews were part of Shirley’s team at the time. Read more reviews →
VA Cash-Out Refinance FAQ
How much cash can I take out with a VA cash-out refinance?
VA allows up to 100% of the appraised value, including the funding fee. Many lenders set a lower maximum, such as 90%.
Can I refinance an FHA loan into a VA loan?
Yes. A VA cash-out refinance can replace an FHA loan — often to eliminate FHA monthly mortgage insurance — even if you take no cash.
Do I have to live in the home?
Yes. A VA cash-out refinance requires that the home be your primary residence.
What is the funding fee on a VA cash-out?
2.15% on first use and 3.3% on subsequent use. Veterans receiving VA disability compensation are exempt.
What can I use the cash for?
Anything legal — debt consolidation, home improvements, tuition, emergencies. The refinance must still provide a net tangible benefit.
VA Cash-Out Refinance by state
The VA rules above are federal. Each state guide adds what changes locally — property-tax relief for disabled veterans, residual-income region, community-property rules and more.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
