Housing

VA Cash-Out Refinance Loan

A VA-backed refinance of any existing mortgage, VA or not, that can take cash out of home equity, with a 2.15% funding fee on first use and 3.3% after.

Also called: cash-out refinance, VA refinance, home equity, Type I refinance.

For: Veteran or service member.

Where it applies

Applies in states and territories.

Federal

A VA cash-out refinance replaces a current mortgage, which does not have to be VA-backed, with a new VA-backed loan. It can lower the rate, take cash out of equity, or move a conventional or FHA loan into the VA program. The veteran needs a Certificate of Eligibility, must meet the lender's and VA's credit and income standards, and must live in the home. The funding fee is 2.15% for first use and 3.3% after first use, whatever the equity; a veteran exempt from the funding fee pays none. VA does not lend the money; a private lender does.

Thresholds

Thresholds for VA Cash-Out Refinance Loan
Gate	Rule
VA home loan eligibility	A valid Certificate of Eligibility and occupancy of the home.

Documents the source lists

What the official source lists for an application, and where to get each document. It is a reference read from the source, not a full list of what the office may ask for; check with the office or an accredited representative before you apply. Needed means the source asks for it; Helps means the source calls it optional or says it speeds things up.

Needed VA home loan Certificate of Eligibility (COE)
Where to get it Request it on VA.gov, or ask your lender to get it through VA’s lender portal.
Listed by VA, Cash-out refinance loan read 2026-10-10
Needed Pay stubs for the most recent 30 days
Where to get it Pay stubs, W-2 and 1099 forms, tax returns and benefit award statements for the year asked about.
Listed by VA, Cash-out refinance loan read 2026-10-10
Needed W-2 forms for the previous 2 years
Where to get it Pay stubs, W-2 and 1099 forms, tax returns and benefit award statements for the year asked about.
Listed by VA, Cash-out refinance loan read 2026-10-10
Needed Federal income tax returns for the previous 2 years
Many lenders ask for them, not all.
Where to get it Pay stubs, W-2 and 1099 forms, tax returns and benefit award statements for the year asked about.
Listed by VA, Cash-out refinance loan read 2026-10-10

Figures

Each figure is dated with the day it was read. A local figure moves whenever the statute or the local ordinance does, so confirm it with the office that grants it before you rely on it. Statute verified gives the day the weekly section check last found the statute standing on the legislature’s own code site; a figure without it rests on a statute the check does not read yet.

Dated figures for VA Cash-Out Refinance Loan
Figure	Amount	Read from
Cash-out refinance funding fee	2.15% first use, 3.3% after38 U.S.C. 3729(b)(2)	VA funding fee and loan closing costsRead 2026-10-08

Sources

Cash-out refinance loanOfficial
VA funding fee and loan closing costsOfficial

Updated

Last updated 2026-10-08.

What changed then:

First published.

Request an update

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.