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VA Cash Out Refinance
Access Every Dollar of Your Home Equity With No PMI.
INTRODUCTION
What is a VA cash-out refinance?
A VA cash-out refinance allows eligible veterans to replace their existing mortgage — VA or non-VA — with a new VA loan and receive cash from their home equity at closing. It allows up to 100% LTV — the highest of any standard cash-out program. No PMI is charged at any LTV. A VA appraisal is required. The funding fee is 2.15% for first use and 3.3% for subsequent use — waived entirely for veterans with any service-connected disability.
When conventional lenders cap your cash-out at 80% of your home’s value, eligible veterans have a different option — one that goes all the way to 100%. No PMI at any loan-to-value. No conventional cash-out ceiling.
The VA cash-out refinance generated approximately $45 billion in loan volume in FY2023. Veterans used the proceeds for home renovation, debt elimination, education funding, investment, and financial transitions. The 100% LTV access combined with zero PMI makes the VA cash-out the most generous equity access program available to any borrower in the standard mortgage market.
HOW VA CASH OUT WORKS
VA Cash-Out Refinance
Type I vs Type II and How Each Works
THE VA CASH OUT ADVANTAGE
What 100% LTV Means in Real Dollars Compared to Conventional
On a $500,000 home with a $300,000 existing mortgage, conventional cash-out at 80% LTV produces $100,000 in proceeds. VA cash-out at 100% LTV produces $200,000 in proceeds on the same home — double the equity access with no PMI added to the new loan. The Federal Reserve Z.1 report confirms US homeowners held $32 trillion in home equity as of Q4 2024. For VA-eligible veterans, the 100% LTV VA cash-out is the most efficient path to accessing that equity without the PMI penalty that conventional programs impose above 80% LTV.
| VA Cash-Out Benefit | Simple Explanation |
|---|---|
| More Home Equity Access | Eligible veterans may be able to access more of their home’s equity than with many conventional loans. |
| No Monthly Mortgage Insurance | VA cash-out loans do not require monthly PMI. |
| Flexible Refinance Option | Existing eligible homeowners can refinance into a VA cash-out loan if they qualify. |
THE 3 QUESTIONS CONVENTIONAL BUYERS ASK MOST
Yes. The VA cash-out can refinance any existing loan — conventional, FHA, or USDA — as long as you are an eligible veteran and the property is your primary residence. This is called a Type II VA cash-out and it converts a non-VA loan into a VA loan while simultaneously accessing equity. Veterans who purchased with conventional financing and later want to access equity at 100% LTV can use this program.
Yes. Unlike the VA IRRRL, the VA cash-out refinance requires a full VA appraisal because the loan amount is based on the home’s current market value. The VA appraisal also includes an MPR inspection. Access Financial orders the VA appraisal on day one of the application to protect your close timeline.
There are no VA-imposed restrictions on how proceeds are used. Common uses: home renovation, debt consolidation, education funding, medical expenses, down payment on a rental property, or building a cash reserve. Access Financial can direct payoff checks to specific creditors at closing if debt elimination is the goal.
100% LTV. No PMI. Access Every Dollar of Equity You Have Built.
The VA cash-out refinance gives eligible veterans access to their full home equity at 100% LTV with no PMI — a combination available through no other standard mortgage program. Access Financial confirms your eligibility, calculates your available equity, checks your funding fee waiver status, and closes in 30 days.