Open to non VA loans
Your current mortgage does not have to be a VA loan. A conventional or FHA loan can be refinanced into a VA loan this way, which also removes monthly mortgage insurance.
Ed Parcaut · Navy veteran · Mortgage strategist in Modesto, California · NMLS #235384
TURN HOME EQUITY
INTO USABLE FUNDS.
A VA cash out refinance replaces your current mortgage with a new VA loan for a larger amount, and you receive the difference in cash. Unlike the streamline, it is open to homeowners whose current loan is conventional or FHA, so it is also the way to move an existing non VA loan onto VA financing. It requires a full application, an appraisal and income documentation.
Who it fits
EQUITY YOU HOLD.
PUT TO WORK.
People use this to consolidate higher cost debt, fund a repair or improvement, or simply move off a loan that carries monthly mortgage insurance. Ed will tell you plainly when leaving the loan alone is the better answer.
Full underwriting applies
Expect an appraisal, income and asset documentation and a credit review. This is a full refinance, not a streamline.
How much you can take
The amount depends on your appraised value, your entitlement and the lender's limits. It is worked out from your file rather than from a rule of thumb.
Worth comparing against the alternatives
A second loan or a line of credit sometimes costs less than refinancing a whole balance. Compare before you commit, especially if your current rate is low.
Program availability and requirements vary by lender and by your individual file. Nothing here is a commitment to lend.
What to gather
BRING THESE
TO THE TABLE.
A cash out refinance is fully documented. Gathering these early keeps it moving.
- Current mortgage statement. For every loan secured against the property, including any second.
- Income documents. Pay stubs and W2s, or business returns if you are self employed. Award letters for retirement or disability income.
- Recent bank and asset statements. Enough to show reserves and account history.
- Certificate of Eligibility. Required whether or not your current loan is a VA loan. It can be pulled for you.
- A clear purpose for the funds. Debt payoff figures, a contractor estimate or the amount you need. It shapes whether this is the right product at all.
Can I take cash out with a VA loan?+
Yes. A VA cash out refinance replaces your existing mortgage with a larger VA loan and pays you the difference. It requires an appraisal, income documentation and full underwriting.
Does my current loan have to be a VA loan?+
No. This is the product that allows a conventional or FHA loan to be refinanced into a VA loan, which is one of the main reasons people use it.
How is this different from an IRRRL?+
An IRRRL is a streamline for an existing VA loan and provides no cash. A cash out refinance is fully underwritten, is open to non VA loans, and can return funds to you at closing.
Will I pay the VA funding fee again?+
Most borrowers pay a funding fee on a cash out refinance, and it can often be financed. Veterans receiving service connected disability compensation are commonly exempt.
Is refinancing always worth it?+
No. If your current rate is well below today's, pulling equity through a second loan may cost less overall. That comparison is part of the conversation, not an afterthought.
Related reading
KEEP LOOKING.
VA streamline refinance
Lower the rate on an existing VA loan with far less paperwork.
Read about IRRRLVA purchase loan
Buying in California with your VA benefit, including limits and jumbo options.
Read the guideVeterans and VA loans
The full hub, with California specifics and the questions veterans ask most.
Read the hubReviews on Google
WHAT CLIENTS SAY
ABOUT WORKING WITH ED.
5.081 Google reviewsRead them on Google
Working with Ed Parcaut on our vacation home purchase was an outstanding experience from start to finish. Ed's expertise and deep knowledge of the lending process made everything feel seamless. He took the time to explain every step clearly, answered all of our questions with patience, and helped us navigate the unique aspects of financing a second home with confidence. What truly stood out was Ed's responsiveness and efficiency. No matter the time or situation, we always received quick updates and fast answers, which made the entire process move smoothly and on schedule. His professionalism, attention to detail, and commitment to excellent service exceeded our expectations. I highly recommend Ed to anyone looking for a knowledgeable, reliable, and highly responsive lender — for any home purchase.
Ed made the process so easy and simple for my wife and I. When we had questions, he had answers. He communicated with us constantly and clearly. I absolutely recommend his services. Owning our forever home post-military retirement and finally settling down and raising our family has been our goal for a long time and Ed helped make that a reality for us. Thanks again Ed!
I am thoroughly blessed, thankful and satisfied with the process. And all the time that it took the different steps it took to get this process done. Thank you, well done.
Ed is a true professional and I would recommend him to friends and family without hesitation. He kept us informed every step of the way all the way to closing! He's also just a really nice human being. No need to look anywhere else for your home loan needs cause Ed knows his stuff.
From beginning, middle, and end of this home lending experience my work with Ed, and Amy has been wonderful. They have been very supportive, and generous with their kindness, and they have excellent professionalism with regard to working well with all parties involved. Their knowledge, experience, and time has been much appreciated. Thank you so much, and I look forward to the next time we meet!
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