To build, buy, or refinance. Call our experts at: phone icon1-844-422-3622

VA Cash-Out Refinance

Turn Home Equity into Cash, Quickly and Easily

  • CheckmarkLower your interest rate
  • CheckmarkNo out-of-pocket expenses
  • CheckmarkFinancing up to 90% of the home’s value
  • CheckmarkReduce or extend the term of the mortgage
  • CheckmarkAccess cash from your home’s equity

VA Cash-Out Refinance Guidelines

Who Is Eligible for a VA Cash-Out Refinance?

  • Current and former U.S. military servicemembers with qualified credit

  • Homeowners who already have a VA Home Loan, or another conventional loan, including FHA or others, who are interested in converting to a VA mortgage


Refinance Your Mortgage with a VA Cash-Out Refinance.

The VA Cash-Out Refinance loan gives Veterans and military servicemembers, with qualified credit, the ability to refinance their current home loan into a lower rate, while accessing cash from the home's equity.

The VA Cash-Out Refinance is the only VA Home Loan type that includes cash-out refinancing up to 90% of the home’s value. Plus, Veterans and servicemembers can use the VA Cash-Out Refinance even if their current mortgage is not a VA Home Loan—it can be used to convert conventional loans, FHA loans, or any other loan type into a VA mortgage.

There are no restrictions on how you spend the cash back from your VA Cash-Out Refinance; however, common uses include:

  • Reducing or paying off debts.

  • Financing home improvement projects.

  • Paying for college/higher education.

  • Paying for emergency expenses.

Although the name suggests otherwise, homeowners aren’t actually required to take out cash with a VA Cash-Out Refinance. Even if you don’t plan to receive cash at closing, you can still take out a VA Cash-Out Refinance loan to lower your rate, replace a current adjustable-rate loan, or eliminate mortgage insurance paid on your existing mortgage.

VA Cash-Out Refinance Requirements

VA Cash-Out Refinance requirements are similar to those for a typical VA purchase loan, including proof of income, credit underwriting, and a home appraisal. You must also certify that you currently occupy or intend to occupy the property being refinanced with the VA Cash-Out Refinance loan.

It is important to note that, unlike a VA IRRRL, you can’t roll the closing costs of the home on top of the refinanced loan. However, you may be able to finance your closing costs into your new loan as long as you still meet the loan-to-value (LTV) guidelines.

As with all VA Home Loans, homeowners must pay the VA funding fee, although there are some circumstances in which the VA funding fee can be waived. You may qualify for exemption if (1) you are a Veteran with a service-connected disability or (2) you are the surviving spouse of a Veteran who died in service or from a service-connected disability. With a VA Cash-Out Refinance, you have the ability to roll the funding fee into your overall loan amount as long as you meet the loan-to-value (LTV) guidelines.

VA Cash-Out Refinance Rates


Recent volatility in the financial markets have caused mortgage interest rates to vary significantly on a daily basis. AAFMAA Mortgages Services LLC (AMS) remains focused on helping AAFMAA Members and prospective Members get the best mortgage and rates available. Please contact us directly to obtain current rates, offers, and terms.

Contact a Military Mortgage Advisor Today.

Interested in refinancing your current mortgage? AMS offers refinancing services for current and former U.S. military servicemembers with qualified credit. Call 844-394-4526 to chat with an experienced Military Mortgage Advisor or contact us today for a free mortgage assessment.

Common Questions

If you have significant expenses you need to cover in the near future, like a home improvement project or a child’s college education, a VA Cash-Out Refinance allows you to refinance up to 90% of your home’s value to access cash from your home's equity. You don’t even need to have a current VA-backed loan to qualify. A VA Cash-Out Refinance can be used to convert conventional loans, FHA loans, or any other loan type into a VA mortgage. Check out our VA Mortgage Calculator and Mortgage Refinance Calculator to estimate payments based on different terms.

To qualify for a VA Cash-Out Refinance loan, you must: 

  • Provide all documentation required, similar to requirements for a VA Home Loan to purchase a home, for example, proof of income, credit underwriting, home appraisal, etc.
  • Certify that you currently occupy or intend to occupy the home covered by the refinance loan

Pay the VA funding fee. There are some circumstances in which the VA funding fee may be waived. 

The first step is to submit your completed loan application. After submission, one of our dedicated, licensed Military Mortgage Advisors will use your credit and financial information to determine which loan program is best for you. You may be eligible for a VA Cash-Out Loan at up to 100% of your home’s appraised value.