Many homeowners assume they must wait a year or longer before using a VA cash-out refinance. However, eligible Veterans may be able to refinance much sooner. When refinancing an existing VA-guaranteed loan, the borrower generally must satisfy both seasoning requirements. The new loan cannot close until the later of these two seasoning milestones. Importantly, the 210-day period is not calculated from the original note date.
- The borrower must have made at least six consecutive monthly payments on the existing loan.
- At least 210 days must have passed from the date the first monthly payment was made.
- The refinance must meet all applicable VA eligibility, occupancy, credit, income, appraisal, and underwriting requirements.
Cash Out Up to 100% of the Home’s Value
Qualified Veterans may be eligible to refinance up to 100% of the property’s appraised value. Available cash will depend on the home’s value, current mortgage payoff, closing costs, VA funding fee when applicable, and the lender’s individual requirements.
- Paying off high-interest debt
- Making home improvements
- Covering major household expenses
- Building financial reserves
- Consolidating other obligations
Put Your Home Equity to Work
For a Veteran who has made six consecutive payments and satisfied the 210-day requirement, a VA cash-out refinance may provide access to substantial equity without waiting a full year. The property must be the Veteran’s primary residence, and approval is never automatic. We help Veterans and active-duty service members evaluate their refinancing options and determine how much equity may be available. Contact us to review your current mortgage, property value, and VA eligibility.
