VA loan basics

5 guides, read top to bottom, take you from VA Cash-Out Refinance: Type I and Type II to A VA Cash-Out Refinance Document Checklist.

Read in this order

1. VA Cash-Out Refinance: Type I and Type IIUnder 2 min min read

   How VA classifies cash-out refinances, why it matters, and the consumer protections that apply.

   • VA requires lenders to show a net tangible benefit, provide comparison disclosures and meet seasoning requirements when refinancing existing VA loans.
   • A VA funding fee applies unless you are exempt, for example if you receive VA disability compensation.
2. Converting an FHA or Conventional Loan to VAUnder 2 min min read

   Why some veterans refinance non-VA loans into VA loans.

   • VA loans have no monthly mortgage insurance.
   • A refinance with no cash out still counts as a VA cash-out (Type I).
3. VA Cash-Out to Refinance a Non-VA LoanUnder 2 min min read

   How veterans can use a VA cash-out refinance to replace an FHA, conventional or other loan, even without taking cash.

   • VA's cash-out refinance can pay off any type of existing mortgage, not only a VA loan.
   • The most common reason is to stop paying monthly mortgage insurance on an FHA or conventional loan, since VA loans do not have monthly mortgage insurance.
4. VA Cash-Out Proceeds: Where the Money GoesUnder 2 min min read

   How the VA cash-out loan amount is divided among payoff, costs, funding fee and cash to you.

   • The VA appraisal sets reasonable value.
   • The first use of the money is paying off your existing mortgage and any other liens that must be cleared, such as a second mortgage or HELOC.
5. A VA Cash-Out Refinance Document ChecklistUnder 2 min min read

   Documents commonly requested for a VA cash-out refinance, so you can gather them before applying.

   • Your lender will need a Certificate of Eligibility.
   • If you receive or are eligible for VA compensation for a service-connected disability, the funding fee may be waived.

Run your own numbers

5 calculators on this site, all blank until you type:

• VA funding fee chart
• Payment and amortization
• Refinance break-even
• Debt-to-income check
• Closing cost worksheet

Check which programs fit

The loan finder asks six questions and points you to the programs worth reading about, with a side-by-side comparison table. It is education, not an eligibility decision.

Talk to lenders

When you are ready to compare offers, print the questions to ask a lender worksheet and fill in one column per lender.

Terms you will meet in these guides

• Funding feefirst in Converting an FHA or Conventional Loan to VA
• Appraisalfirst in Converting an FHA or Conventional Loan to VA
• Entitlementfirst in Converting an FHA or Conventional Loan to VA
• Certificate of Eligibility (COE)first in Converting an FHA or Conventional Loan to VA
• Loan Estimatefirst in Converting an FHA or Conventional Loan to VA
• Cash-out refinancefirst in VA Cash-Out to Refinance a Non-VA Loan
• Lender creditfirst in VA Cash-Out to Refinance a Non-VA Loan
• Servicerfirst in VA Cash-Out Proceeds: Where the Money Goes

Everything here is general education. Program rules change; confirm current requirements with the official sources below and with a licensed lender.

Sources

• VA funding fee page
• VA.gov: Cash-out refinance loan
• VA: Certificate of Eligibility
• Regulation Z, 12 CFR 1026.23
• VA.gov: Eligibility for VA home loan programs

Sources reviewed October 23, 2026. This page was assembled from the guides on this site.