Two types
- Type I: the new loan amount does not exceed the payoff of the current loan. Used, for example, to move a conventional or FHA loan into a VA loan without taking cash.
- Type II: the new loan amount exceeds the payoff, so you receive cash or pay off other debts.
Consumer protections
VA requires lenders to show a net tangible benefit, provide comparison disclosures and meet seasoning requirements when refinancing existing VA loans.
Eligibility
- A valid Certificate of Eligibility.
- The home must be your residence (occupancy certification).
- Full credit and income underwriting and a VA appraisal.
Funding fee
A VA funding fee applies unless you are exempt, for example if you receive VA disability compensation. See the current VA funding fee page.
Official source
VA.gov: Cash-out refinance loan.
Keep reading
This page is general education. Program rules change; confirm current requirements with the official sources linked here and with a licensed lender.