VA Cash-Out Refinance

VA Cash-Out Refinance: Access More of Your Home’s Equity

If you're a veteran, active-duty service member, or qualifying military spouse, a VA cash-out refinance could be the key to unlocking your home’s equity. Whether you’re planning home renovations, consolidating high-interest debt, or covering unexpected expenses, this loan option offers greater flexibility and unique benefits compared to conventional or FHA refinance loans.

Who Qualifies?

  • Veterans

  • Active duty service members

  • Reservists and National Guard members

  • Surviving spouses of military personnel

You do not need to currently have a VA loan to qualify. Refinance any existing loan — conventional, FHA, or other — into a VA cash-out refinance.

Why Choose a VA Cash-Out Refinance?

  • Refinance up to 100% of your home’s value

  • Potentially lower interest rates and monthly payments

  • No private mortgage insurance (PMI)

  • Flexible qualification guidelines

Feature

VA Cash-Out Refinance

Conventional

Cash-Out

FHA Cash-Out Refinance

Loan-to-Value

(LTV) Ratio

Up to 100%

Up to 80%

Up to 80%

Mortgage

Insurance

No PMI required

PMI required if <20% equity

MIP required regardless of equity

Credit Score

Requirement

No official minimum

(lender discretion)

Typically 620+

Typically 580+

Eligible

Borrowers

Veterans, service members, qualifying spouses

All qualified borrowers

All qualified borrowers

Property

Appraisal

Required

Required

Required

Debt-to-Income

(DTI) Ratio

Flexible (varies by lender)

Typically ≤ 43% (some

allow up to 50%)

Typically ≤ 43%

Use of Funds

Flexible – any purpose

Flexible – any purpose

Flexible – any purpose

Funding Fee

Yes (waived for some

veterans)

None

None

Upfront Costs

Closing costs + VA

funding fee

Closing costs

Closing costs + upfront MIP

What Is a VA Cash-Out

Refinance Loan?

A VA cash-out refinance is a mortgage option backed by the U.S. Department of Veterans Affairs that allows eligible homeowners to tap into their home equity for cash. This type of refinance replaces your existing mortgage—whether it’s a VA loan or another loan type—with a new VA-backed loan that may have a different interest rate, loan term, or both.

With a VA cash-out refinance, you can use the funds for home improvements, debt consolidation, or other major expenses, all while potentially securing better loan terms.

You don’t need to have an existing VA loan to qualify—you can refinance any type of mortgage into a VA loan if you meet the eligibility requirements.

If you're already using a VA loan and don’t need to take cash out, consider a VA Streamline Refinance (IRRRL) instead. It offers a simpler, faster process with fewer documentation requirements.

How Does a VA Cash-Out Refinance Work?

A VA cash-out refinance allows you to replace your current mortgage with a new, larger VA-backed loan—giving you the opportunity to withdraw a portion of your home equity in cash.

Here’s how it works:

  • Your current mortgage is paid off with the new VA loan.

  • The new loan can have a different interest rate, loan term, or both.

  • You receive the difference in cash, based on how much equity you've built up in your home.

What sets this apart from a standard rate-and-term refinance is the ability to tap into your home equity for cash—ideal for covering home renovations, high-interest debt, education costs, or other financial needs.

VA cash-out refinance loans are available even if your current mortgage isn’t a VA loan—as long as you meet VA eligibility requirements.

How Much Cash Can You Get with a VA Cash-Out Refinance?

The amount of cash you can receive from a VA cash-out refinance depends on two key factors:

  • Your current mortgage balance

  • Your home’s current appraised value (equity)

VA loans stand out because they typically allow you to borrow up to 90% of your home’s value, and in some cases, up to 100%, depending on the lender and your eligibility

Example:

  • Home value: $500,000

  • Mortgage balance: $200,000

  • 90% of home value: $450,000

With a VA cash-out refinance, you could potentially borrow $450,000. After paying off your existing loan ($200,000), you could walk away with $250,000 in cash.

Keep in mind: The exact amount you can borrow will depend on lender guidelines, your credit profile,

income, and overall VA loan eligibility.

Are You Eligible for a VA Cash-Out Refinance?

To qualify for a VA cash-out refinance, you’ll need to meet military service requirements set by the U.S. Department

of Veterans Affairs and financial criteria set by your lender.

🎖 VA Service Requirements

The VA requires proof of eligible military service. Requirements vary depending on when and how long you served, and whether you are:

  • An active-duty service member

  • A veteran

  • A member of the Reserves or National Guard

  • A surviving spouse of a service member

Tip: You’ll need to apply for a Certificate of Eligibility (COE) to confirm your qualification for a VA loan.

Lender Requirements

In addition to VA eligibility, most lenders will require that you:

  • Live in the home you’re refinancing (must be your primary residence)

  • Have a minimum credit score (typically 620 or higher)

  • Show stable income and employment

  • Meet the lender’s Debt-to-Income (DTI) ratio requirements (often up to 70% DTI for VA loans

How to Get a VA Cash-Out Refinance Loan

If you're looking to tap into your home’s equity, a VA cash-out refinance can be a smart and powerful financial tool—especially for veterans and military families. At OMEGA Mortgage, we specialize in helping you navigate this process with clarity and confidence. Here’s how to get started:

1. Connect with a VA-Approved Lender

Start by talking with OMEGA Mortgage, a trusted VA-approved lender offering VA cash-out refinance loans. Rates and terms can vary, so it's important to work with someone who understands your goals. I’d be happy to provide guidance and help you determine if this loan is right for you.

2. Obtain Your Certificate of Eligibility (COE)

To confirm your eligibility for a VA loan based on your military service, you’ll need a Certificate of Eligibility (COE). You can apply directly through the VA website, or let us assist you in obtaining it quickly and easily through OMEGA Mortgage.

3. Submit Your Loan Application

Next, we’ll complete your loan application together. You’ll need to provide your COE, proof of employment, income verification, and other financial documents. At OMEGA Mortgage, we’ll make sure everything is organized so the process is smooth and stress-free.

4. Get a Home Appraisal

A home appraisal is typically required to determine your property’s current value and how much equity you can access. To get started, we offer a Home Value Estimator to give you a preliminary idea—before you invest in the official appraisal.

5. Close on Your Loan

The closing process usually takes 20 to 30 days, depending on your unique situation. As with any refinance, you’ll need to cover closing costs, typically ranging from 1% to 5% of the loan amount. I’ll walk you through all the costs upfront so there are no surprises at the closing table.

Ready to get started? I’m here to help every step of the way.

At OMEGA Mortgage, our mission is to serve those who serve—by making your path to financial stability as seamless and informed as possible.

VA Cash-Out Refinance vs. VA IRRRL (Streamline Refinance)

When it comes to accessing your home’s equity, there are three main types of cash-out refinance loans: VA, Conventional, and FHA. Each comes with its own benefits and requirements.

VA cash-out refinance loans are especially appealing to eligible veterans and military families. They typically offer lower interest rates and don’t require private mortgage insurance (PMI), which can result in substantial savings over the life of your loan. Meanwhile, conventional loans may come with lower closing costs, and FHA loans can be an option for those with lower credit scores.

To help you make an informed decision, here’s a side-by-side comparison:

Feature

VA Cash-Out Refinance

Conventional

Cash-Out

FHA Cash-Out Refinance

Retained home

equity (minimum)

10%

20%

20%

LTV

(maximum)

Up to 90%

Up to 80%

Up to 80%

Credit score

(minimum)

580 - 620

640

580 (some may be

as high as 620)

Mortgage

insurance

Not required

Required if home equity is less than 20%

Requires two forms: 1.75% of the new loan amount upfront and 0.50% of the loan amount annually

Funding fee

2.15% to 3.3% of the loan amount

Not required

Not required

Closing costs

1% - 5% of the new loan amount

Up to 3.5% of the new loan amount

2% - 6% of the new loan amount

Days to close

20 - 30 days

15 - 25 days

15 - 25 days

Have questions? Let's talk—I'd love to help you explore your best path forward.

At OMEGA Mortgage, I’m here to walk you through the pros and cons of each option and help you find the refinance strategy that best fits

your needs and long-term goals.

VA Cash-Out Refinance vs. VA IRRRL (Streamline Refinance)

Both the VA Cash-Out Refinance and the VA IRRRL are excellent tools for eligible veterans and service members looking to refinance their mortgage—but they serve very different purposes.

At OMEGA Mortgage, I help clients understand which option best fits their financial needs. Here's how these two VA-backed refinance options compare:

Key Differences at a Glance

Feature

VA Cash-Out Refinance

VA IRRRL (Streamline Refinance)

Primary Purpose

Tap into home equity or refinance a

non-VA loan into a VA loan

Lower your interest rate or switch

from an ARM to a fixed rate

Cash-Out Option

Yes — take out cash from

home equity

No — except up to $6,000 for energy-efficiency improvements

Loan Approval

Process

Full application process, including income verification, credit check, and appraisal

Simplified process — no appraisal or income verification typically required

Closing Costs

1%–5% of new loan amount

Lower — often rolled into the loan

Funding Fee

2.15%–3.3% (can vary)

0.5%

Time to Close

20–30 days

As little as 10–20 days

Credit Check

Required

Yes

Not always (depends on lender)

Occupancy

Requirement

Must be for primary residence

Home must have been previously occupied; can now be a rental

Which Refinance Is Right for You?

A cash-out refinance can be a powerful financial tool—allowing you to tap into the equity you’ve built in your home to meet

other financial goals. However, it’s important to weigh both the advantages and potential drawbacks before moving forward.

Which Refinance Is Right for You?

  • Choose a VA Cash-Out Refinance if you need to access cash for home improvements, debt consolidation, or large expenses—or if you're refinancing a non-VA loan into a VA loan.

  • Choose an IRRRL if your main goal is to lower your interest rate, reduce your monthly payment, or move to a more stable loan structure with minimal paperwork.

At OMEGA Mortgage, I’m committed to making sure you fully understand your options and choose the refinance that works best for your life and your goals.

Not sure which path is right for you? I’m here to help—let’s talk.

Why Might I Get a VA Cash-Out Refinance?

If you’re eligible for a VA cash-out refinance, this loan option can be a powerful financial tool—not just for lowering

your interest rate, but also for unlocking the equity you've built in your home.

Many of the homeowners I work with choose a VA cash-out refinance to receive cash back at closing. You can use those funds however you see fit. Some of the most common uses include:

  • Paying off high-interest debt like credit cards or personal loans

  • Making home improvements or repairs to increase your property’s value

  • Covering education costs for yourself or a family member

  • Building an emergency fund for financial flexibility and peace of mind

  • Refinancing a non-VA loan into a VA loan, often with better terms and no private mortgage insurance (PMI)

At OMEGA Mortgage, my goal is to help you understand all the possibilities and determine whether a VA cash-out refinance aligns with your financial goals.

Have questions or want to explore your options? I’m just a conversation away.

Should I Get a VA Cash-Out Refinance?

A VA cash-out refinance can be an excellent option for eligible homeowners looking to access their home equity—without having to sell. It offers flexibility, competitive interest rates, and no private mortgage insurance (PMI). But is it the right move for you?

If you’re still on the fence, here are a few steps to help you decide:

1. Evaluate Your Financial Goals

Are you looking to consolidate high-interest debt, make home improvements, or build an emergency fund? If you need access to cash for a strategic reason, a VA cash-out refinance could make strong financial sense.

2. Assess Your Home Equity

To qualify, you’ll typically need to retain at least 10% equity in your home after the refinance. Not sure how much equity you have? At OMEGA Mortgage, I can help you estimate your home’s value and guide you through the math.

3. Review Your Current Loan Terms

If your current mortgage has a higher interest rate, refinancing into a lower VA rate might save you money—even before factoring in the cash-out benefit.

4. Consider the Costs

Like any refinance, a VA cash-out comes with closing costs and a funding fee. I’ll walk you through all the numbers so you can make an informed decision with no surprises.

Let’s talk through it—no pressure, just expert guidance.

At OMEGA Mortgage, I’m here to help you explore your options, understand the pros and cons, and make the decision that’s

right for your unique situation.

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40-Year Term Loans – Lower Payments, Greater Flexibility

Atb OMEGA Mortgage, we offer 40-Year Term Loans designed for borrowers seeking lower monthly payments by extending their mortgage over a longer period. This option provides increased affordability in the short term, making homeownership more accessible.

Who Qualifies?

  • Homebuyers looking for lower monthly payments

  • Borrowers who need more flexibility in their budget

  • Homeowners seeking to refinance and reduce their monthly costs

Key Benefits:

  • Lower Monthly Payments – Spread the loan balance over 40 years for affordability

  • Easier Qualification – Reduced debt-to-income (DTI) ratio may improve approval chances

  • Available for Purchase & Refinance – Flexible options to fit your financial goals

  • Ideal for Budget-Conscious Buyers – Keeps homeownership within reach

Considerations:

At OMEGA Mortgage, we offer 40-Year Term Loans designed for borrowers seeking lower monthly payments by extending their mortgage over a longer period. This option provides increased affordability in the short term, making homeownership more accessible.

Is a 40-Year Loan Right for

You?

  • May Have Slightly Higher Rates – Compared to traditional 30-year loans

Our mortgage experts can help you determine if a 40-Year Term Loan aligns with your long-term financial plans.

Plan for Closing Costs and Fees

When considering a VA cash-out refinance, it's important to understand the associated costs so you can plan ahead with confidence.

You can typically expect to pay between 1% and 5% of your loan amount in closing costs. These costs may include lender fees, title charges, appraisal fees, and more—much like a standard refinance.

In addition, VA cash-out refinances include a one-time VA funding fee, which helps keep the VA loan program running for future veterans:

  • 2.15% of the loan amount if it’s your first time using your VA loan benefit

  • 3.3% if you’ve used your VA loan benefit before

Good news: If you have a service-connected disability, you may be exempt from paying the funding fee altogether.

Like other types of refinancing, many of these costs—including the funding fee—can be rolled into your new loan amount, so you don’t necessarily need to pay them out of pocket.

At OMEGA Mortgage, I’ll walk you through all of your options, show you exactly what to expect, and help you start

the pre-qualification process with clarity and confidence.

Have questions? Let’s chat—I’m here to help.

Second Mortgages – Tap Into Your Home’s Equity Without Refinancing

At OMEGA Mortgage, we offer Second Mortgage Loans to help homeowners leverage their home equity for home improvements, debt consolidation, or major expenses—without disturbing their existing first mortgage.

Who Qualifies?

  • Homeowners with sufficient equity in their property

  • Borrowers looking to avoid refinancing their first mortgage

  • Individuals needing funds for renovations, education, or large expenses

Key Benefits:

  • Keep Your First Mortgage Intact – No need to refinance your existing loan

  • Access to Home Equity – Convert equity into cash for important expenses

  • Flexible Loan Options – Choose between a lump sum loan or a home equity line of credit (HELOC)

  • Potential Tax Benefits – Interest may be tax-deductible for home improvements (consult a tax advisor)

Types of Second Mortgages:

  • Home Equity Loan – A lump sum loan with fixed payments and interest rates

  • Home Equity Loan – A lump sum loan with fixed payments and interest rates

Is a Second Mortgage Right for You?

Our mortgage experts will help you evaluate your options and find the best Second Mortgage Loan to fit your needs.

Call Us: ( 909-757-8226 )

Call Us: ( 909-757-8226 )

HELOC & Home Equity Loans – Unlock Your Home’s Value

At OMEGA Mortgage, we offer Home Equity Line of Credit (HELOC) and Home Equity Loan (HELOAN) options, allowing homeowners to access their home equity for renovations, debt consolidation, or major expenses.

  • Home Equity Line of Credit (HELOC)

  • Revolving Credit – Borrow as needed, like a credit card

  • Flexible Withdrawals – Access funds over time instead of a lump sum

  • Variable Interest Rates – Typically lower initial rates than fixed loans

  • Great for Ongoing Expenses – Ideal for home improvements or unexpected costs

  • Home Equity Loan (HELOAN)

  • Lump Sum Loan – Receive funds all at once

  • Fixed Interest Rate – Predictable monthly payments

  • Set Loan Term – Typically 5, 10, or 15 years

  • Great for Large One-Time Expenses

    – Ideal for debt consolidation, medical bills, or major purchases

  • Homeowners with sufficient home equity

  • Borrowers looking for lower interest rates than credit cards or personal loans

  • Individuals needing funds for home renovations, college tuition, or financial emergencies

Our mortgage specialists will help you determine which
option best suits your financial goals.

Call Us: ( 909-757-8226 )

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Buy Before Sell – Secure Your New Home Without the Wait

At OMEGA Mortgage , we offer Buy Before Sell loans— a short-term financing solution that allows homeowners to purchase their next home before selling their current one. This bridging option helps buyers stay competitive in the market without the stress of timing two transactions perfectly.

Who Qualifies?

  • Homeowners with equity in their current property

  • Buyers who need flexibility to purchase before selling

  • Those looking to avoid contingent offers and market delays

Key Benefits:

  • Buy First, Sell Later – Secure your dream home without waiting

  • Leverage Existing Equity – Use your current home’s value to qualify

  • Stronger Offers – Avoid contingencies and compete like a cash buyer

  • Smooth Transition – Move into your new home before selling the old one

  • May Have Slightly Higher Rates – Compared to traditional 30-year loans

How It Works:

Our mortgage experts can help you determine if a 40-Year Term Loan aligns with your long-term financial plans.

  • Use Equity from Your Current Home – Borrow against your home’s value

  • Purchase Your New Property – Secure financing without delays

  • Sell Your Current Home on Your Timeline – Pay off the bridge loan after selling

Move Forward Without the Hassle!

With a Buy Before Sell loan from OMEGA Mortgage, you can transition smoothly into your next home without the pressure of lining up two transactions.

Call Us: ( 909-757-8226 )

Bridge Loans – Short Term Financing for Seamless Home Transitions

At OMEGA Mortgage, we offer Bridge Loans, a short-term financing solution that helps homeowners buy a new home before selling their current one. This temporary loan uses your existing home’s equity to cover the down payment or full purchase price of a new property, making it easier to transition without financial strain.

Who Qualifies?

  • Homeowners who need funds before their current home sells

  • Buyers looking to avoid contingent offers

  • Buyers looking to avoid contingent offers

  • Homeowners who want to move quickly in competitive markets

Key Benefits:

  • Short-Term, Flexible Financing – Typically 6-12 months

  • Leverage Home Equity – Access funds without selling first

  • Avoid Contingencies – Strengthen offers with non-contingent financing

  • Smooth Transition – Move into your new home before selling the old one

How Bridge Loans Work:

  • Use Your Current Home’s Equity – Secure funding based on existing property value

  • Purchase Your New Home – Get financing before selling your current property

  • Repay When You Sell – Pay off the bridge loan once your old home sells

Move with Confidence!

Our Bridge Loan solutions at OMEGA Mortgage help you transition seamlessly into your next home while maximizing your financial flexibility.

Call Us: ( 909-757-8226 )

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Feature Headlie

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

Licensed In: AL,CA,FL,GA,IL,MD,NC,TN,TX,VA, NMLS # 1068689 | NMLS ID 1660690 |

AZMB #0944059

Corporate Address : 5559 S Sossaman Rd #1-101, Mesa AZ 85212

Disclaimer: All loans subject to qualifying factors. Not all applicants will qualify.

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Feature Headlie

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All

products are subject to credit and property approval. Other restrictions and limitations may apply.

Licensed In: AL,CA,FL,GA,IL,MD,NC,TN,TX,VA, NMLS # 1068689 | NMLS ID 1660690 | AZMB #0944059

Corporate Address : 3100 W Ray Rd STE 201, Office 209 Chandler, AZ 85226

All product names, logos, and brands are property of their respective owners.

Disclaimer: All loans subject to qualifying factors. Not all applicants will qualify.

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