Current VA cash-out guidelines, updated from one source.
Read the block as VA’s rulebook reduced to what decides a file. The loan stops at the reasonable value, fee included; the fee follows the veteran’s use of entitlement unless an exemption applies; the loan being replaced must be seasoned; the new loan must pass a net tangible benefit test and a ratio guideline that residual income can override. The table beneath carries the fee tiers.
Of the reasonable value, funding fee included, on a principal residence
The ceiling is 100% of the reasonable value with the fee counted, and the VA appraisal sets that value. The payoff, the costs, and the fee come out of the loan first; what is left is the cash, and the whole structure carries no monthly insurance premium.
First use; 3.3% after first use; exempt with service-connected disability compensation
The funding fee on a cash-out is 2.15% of the loan for a first use of entitlement and 3.3% for any later use, and it may be financed. Veterans receiving compensation for a service-connected disability, surviving spouses receiving dependency compensation, and certain others pay no fee at all.
And six payments on the loan being refinanced, whichever comes later
The existing loan must be at least 210 days past its first payment due date and six payments in, whichever comes later, before a VA cash-out can replace it. The new loan must also pass a net tangible benefit test, and a loan that only lowers the rate must recoup its costs within 36 months.
A net tangible benefit test, a debt-to-income guideline, and residual income that decides
580 is the wholesale starting score and 41% the ratio guideline, yet neither decides a VA cash-out alone: residual income by region and family size carries more weight, and a ratio over the guideline passes with residual income comfortably above VA’s table or other justification. One of eight benefit tests must also be met.
| Loan | Fee | Notes |
|---|---|---|
| Cash-out refinance, first use of entitlement | 2.15% | May be financed into the loan; the total may not exceed the cap |
| Cash-out refinance, subsequent use | 3.3% | Any prior VA loan counts as a prior use, including an IRRRL |
| Exempt borrowers | 0% | receiving VA compensation for a service-connected disability; eligible to receive VA compensation for a service-connected disability but receiving retirement or active-duty pay instead; surviving spouses receiving Dependency and Indemnity Compensation (DIC) |
| Rate-reduction refinance loan (IRRRL), for comparison | 0.5% | An existing VA loan refinanced for a lower rate or a fixed rate; no cash out; no appraisal required by VA |
The line-of-credit alternative: Lendmire’s HELOC program lends to 90% combined loan-to-value on a primary residence while the existing first mortgage stays in place and carries no funding fee. A conventional cash-out reaches eighty percent of value, and one wholesale lane goes higher; FHA cash-out reaches eighty percent with mortgage insurance. Each is compared on the same numbers before a recommendation.
Current VA cash-out snapshot · updated October 1, 2026 · the new loan is sized on the reasonable value with the funding fee financed inside the cap · county figures bear only on remaining entitlement and are confirmed by a Lendmire loan officer · taking cash out raises the balance and may extend the payoff · Lendmire is a broker, never the lender.
The content of this page is informational. Leverage, fees, seasoning, benefit tests, credit floors, and ratios are VA guidelines and lender overlays that change without notice; the rate in the calculator is a published weekly average shown only to illustrate a payment, and no rate, payment, or terms are offered. Lendmire LLC, NMLS #2371349, is a licensed mortgage broker in sixteen states, is not the lender, and is not endorsed by the Department of Veterans Affairs. This is not legal or tax advice.
What a VA cash-out refinance is — and how the file is qualified.
An underwriter opens a VA cash-out file in a fixed order, and these cards follow it: the mechanics of the VA-backed loan, the entitlement and the fee, the tests on the old loan and the new one, and the comparison with the alternatives a Raleigh veteran should run before choosing.
For the program overview, see Lendmire’s VA cash-out refinance program, or the statewide guide at VA Cash-Out Refinance in North Carolina; the rules are VA’s, at VA.gov, and the Certificate of Eligibility is requested there.
One new VA loan, cash at closing
A VA cash-out is a brand-new VA-backed first mortgage. The settlement agent pays off the current loan, VA or otherwise, pays off any second lien, pays the closing costs, and sends the veteran what remains once the rescission window has run. The funding fee is financed inside the loan, and the whole loan stays within the reasonable value.
Entitlement, the COE, and the funding fee
Entitlement can be restored and reused. A veteran who paid off a prior VA loan and sold the home has full entitlement again; one who kept the home with a VA loan on it has partial entitlement for a Raleigh cash-out and pays the subsequent-use fee. The COE shows which, and the lender reads it before anything else is ordered.
Seasoning, the net tangible benefit, and the appraisal
Where the new loan does not exceed the payoff of the old one, VA adds a recoupment test: the fees and costs must be recovered through the lower payment within the stated months. Where the new loan is larger, as it is in nearly every cash-out, the benefit test alone applies. The lender also hands the veteran a written comparison of the two loans at application and again at closing.
VA cash-out or the alternatives
Same equity, three instruments: the VA cash-out with full-value leverage and the fee; the streamline with no cash but the smallest fee; the line of credit that adds a second lien instead of replacing the first. Lendmire prices all three for a Raleigh home on the same value, balance, and cash before recommending one, with the conventional and FHA cash-outs priced where entitlement is partial.
The fee sits inside the cap, not on top of it, so a subsequent-use fee leaves less cash than a first-use fee on the same value and an exempt veteran keeps the most. Ask for less and the loan shrinks; ask for more and the calculator reports the ceiling for the tier chosen.
Where Raleigh’s equity sits — and how VA cash-out fits.
Before the calculator, the local backdrop. The U.S. Census Bureau’s Raleigh figures for ownership, value, and income are the context a VA cash-out is written against, the way the Notice of Value and the residual-income table later frame one file.
Market context only. Citywide medians sit above some homes and below others; the Notice of Value and the balance on one house decide what a VA cash-out on it can do.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Raleigh neighborhoods, distinct VA files.
The equity in Raleigh sits in different kinds of homes, and the VA program reads each kind on its own eligibility and condition rules. The neighborhoods below are grouped by exactly those traits.
Homes bought with conventional or FHA loans
Converting a non-VA loan on a Raleigh home is a cash-out even when little cash is taken, because the new VA loan replaces a non-VA one; the seasoning clock still runs on the current loan and the fee is financed inside the cap. On a Raleigh home at the median value, a VA cash-out refinance at the program cap can reach the full $416,000 reasonable value, funding fee included — the existing balance and the fee come off the top, and the rest is the cash available before closing costs.
Condominiums in VA-approved projects
A Raleigh unit in a VA-approved project is a routine cash-out at full-value leverage; a unit in an unapproved project waits on VA’s project review, which the lender can request. The loan officer checks the list before anything else is ordered, and the dues enter the residual-income calculation. Median household income in Raleigh sits near $85,395 on the latest Census estimate.
Homes bought with VA years ago
A home bought on VA terms in Raleigh and held for years makes a clean cash-out file: the entitlement is on record, the current loan is well seasoned, and the open questions at the review are the fee tier and whether the streamline would serve a veteran who only wants a better rate. About 49% of Raleigh’s households rent — roughly 100,202 renter households on the latest Census estimate.
Long-held close-in homes
The houses nearest Raleigh’s core were bought a decade or more ago, and the distance between their value today and the balance left on them is what full-value leverage reaches. On an older house the VA appraiser reads condition against the minimum property requirements, so a short repair list before closing is ordinary. Raleigh counts a population near 481K within the Raleigh-Cary, NC area.
Two- to four-unit homes, owner-occupied
VA allows up to four units when the veteran occupies one, and a Raleigh veteran with a duplex refinances it for cash on the same terms as a house, with the other unit’s rent counted as VA’s rules allow and the leases and the appraisal’s rent schedule in the file. Roughly 103,241 Raleigh households own their homes on the latest Census estimate — 51% of all households, the pool a VA cash-out refinance draws on.
High-value homes and VA jumbo
On a high-value Raleigh home with full entitlement the ceiling is the Notice of Value, not a county figure; with partial entitlement the lender may need equity to reach VA’s guaranty. The wholesale programs apply a higher decision score on their largest loans, which the review confirms. The median owner-occupied home value in Raleigh runs near $415,800 on the latest Census estimate.
Neighborhood moves the appraisal and the repair list; the program stays put. Wherever in Raleigh the home sits, the cap, the fee tiers, the seasoning rule, and the residual-income table are the ones in the snapshot.
Four ways Raleigh veterans put equity to work.
Use decides instrument. The purposes below are the ones a Raleigh review meets most often, each with the detail that settles whether the VA cash-out is the right tool for it.
Replace a conventional or FHA loan with a VA loan
A veteran carrying FHA or private mortgage insurance on a Raleigh home can refinance into a VA loan with no monthly insurance and take equity in the same transaction. The seasoning clock on the current loan and the benefit test on the new one both apply, and the review prices the result against keeping the old loan and adding a line.
Consolidate higher-cost debt into one VA-backed payment
A consolidation file is the VA cash-out at its most common: the old mortgage, a second lien, and the unsecured debt paid at the table, one payment afterward. Residual income is computed on what survives the closing, which is why many Raleigh files clear VA’s table easily, and the home now secures what was unsecured.
Capitalize a business or an investment
Veteran-owned businesses in Raleigh are often funded from home equity, and the VA cash-out turns that equity into working capital on a consumer mortgage qualified on personal income and residual income. The home, not the business, is the collateral, and the file is judged on the veteran’s income as it stands.
Pay off a second lien or a line in repayment
Two liens become one fixed VA payment on a Raleigh home. The ceiling is measured on the total loan, fee included, against the Notice of Value, and the ratio and the residual income are measured on the single new payment, which is usually lower than the two it replaces.
Estimate the cash, the fee, and the new payment on a Raleigh home before requesting a quote.
Enter a Raleigh value, the current balance, and the cash you want; choose the fee tier, a term, and the escrows. The calculator returns the maximum loan at the cap, the most cash available after the fee, the total loan with the fee financed, the cash at closing before costs, the fee itself, principal and interest, the full payment, the ratio against VA’s guideline, and the line-of-credit figure on the same value.
Raleigh VA cash-out estimate
Seeded with a Raleigh median value, a typical balance, and a round cash request at the first-use fee; change any field.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA cash-out refinance quote.
Illustrative starting assumptions: a $415,000 home value near Raleigh’s median owner-occupied value, a $228,000 current balance, the full-value VA cap with the first-use funding fee financed, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for North Carolina (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a VA cash-out refinance quote; a VA loan is priced by the lender at lock. The total loan, funding fee included, is capped at the program leverage on the reasonable value; the fee follows the tier chosen. The cash available is what the cap allows less the balances paid off and the fee, before closing costs, which are not included. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. The debt-to-income figure is a guideline; residual income decides a VA file. Licensed in sixteen states for consumer mortgages.
Same equity, three ways to borrow it.
A Raleigh veteran can reach the same equity three ways, and the differences are structural: a VA cash-out replaces the first mortgage at full-value leverage with the fee inside; the VA streamline refinances an existing VA loan for a better rate with no cash; a home equity line sits behind the first mortgage and prices only the new money. The cards compare them.
VA cash-out, the IRRRL, or a HELOC.
The furthest reach of the three cash-out programs on this site: full-value leverage, no monthly insurance, a credit review built on residual income, and proceeds that are the veteran’s to use. The costs are those of a complete refinance plus the fee, and the loan being replaced must be seasoned.
No cash, small fee, no VA appraisal: the streamline is the lightest VA refinance and the wrong one for equity. It applies only to an existing VA loan, it carries its own seasoning and benefit tests, and it leaves the home’s equity exactly where it was. See Lendmire’s VA loan program for the IRRRL.
For a modest or staged need on a Raleigh home with a low-cost first mortgage, the line usually reaches the cash for less than any refinance. For a veteran whose first mortgage should go, who wants the whole reasonable value, or who is exempt from the fee, the VA cash-out usually wins the comparison, and the review shows both columns. See Lendmire’s home equity line of credit.
VA cash-out for reach, streamline for rate, the line for keeping the first mortgage. The written terms settle which serves a Raleigh veteran, and the review produces them on the same value, balance, and cash for all three, with the fee counted where it applies and left out where the veteran is exempt. Without entitlement, see the conventional and FHA cash-out programs.
What to prepare for a Raleigh scenario review.
The documents are the ordinary refinance set plus the ones VA adds, the Certificate of Eligibility and the service record behind it; here is what a Raleigh VA cash-out review draws on.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
Before counting the cash on a Raleigh home, know what the fee takes, what residual income requires, what the seasoning clock and the benefit test demand, and what the VA appraisal can find.
Use these checks to keep the Raleigh file clean and fundable.
Entitlement first, residual income second, seasoning third; after those, a Raleigh VA cash-out is documentation.
- Confirm the fee tier: A prior VA loan, including a streamline, makes the next use a subsequent use.
- Compute the residual: Family size, loan size, and region move the table; payoffs through the closing lower the obligations.
- Confirm the occupancy: Principal residence only; second homes and rentals are not eligible.
The funding fee comes out of the cash unless the veteran is exempt
Because the fee sits inside the ceiling, the tier decides how much of the equity reaches the veteran. The review on a Raleigh file reads the COE first, applies the tier, and only then sizes the cash; a veteran whose rating is pending at closing may be refunded the fee once the rating is granted with an effective date before closing.
Residual income decides a VA file
The underwriter computes the residual on the new payment, not the old one, so a Raleigh veteran should see the figure at the review rather than at underwriting. Where the ratio exceeds the guideline, VA wants residual income at least a fifth above the table or other justification; where it does not, the table alone must be met.
The home must be the veteran’s principal residence
A spouse may satisfy the occupancy requirement while the veteran is deployed or stationed elsewhere, and a dependent child may in some cases, under VA’s rules. A Raleigh home the veteran rents out entirely fails the test and goes to the conventional program at the investment cap, which the review prices on the same numbers.
Full entitlement or partial entitlement changes the file
With full entitlement a Raleigh veteran faces no VA loan limit and the full-value cap applies on the reasonable value alone. With entitlement partly tied up in another VA loan, VA’s guaranty may not cover the share the lender requires, and equity or a down payment makes up the difference; county figures enter only here and are confirmed by a loan officer, never printed.
The rescission period before the money moves
Signing day is not funding day. After the documents are signed, the rescission period runs; cancellation during it costs nothing; when it closes, the settlement agent pays the old lenders and wires the veteran’s cash. A Raleigh payoff or purchase that depends on the money is scheduled after the period, not inside it.
From a Raleigh scenario review to cash at closing.
A VA cash-out runs in a set order: a review that sizes the loan on the value, the balance, the cash, and the fee tier; the Certificate of Eligibility, the application, and the automated finding; the VA appraisal and underwriting on residual income; closing, the rescission period, and disbursement. Each step is laid out below for a Raleigh veteran.
Scenario review
Bring the value, the balance, the cash wanted, the fee tier or exemption, the income, and the household size. A Lendmire loan officer applies the full-value cap, finds the ceiling and the cash after the fee, the payoff, and the costs, computes residual income on the new payment, prices the streamline and the line of credit beside it, and puts the terms in writing before anything is ordered.
COE, application, and automated finding
Once the COE is in hand and the application is filed, the disclosures go out, the credit report is pulled, and the finding tells the lender what to verify. The Raleigh veteran sees the condition list here: statements, the service record, the payoff figures, the insurance, and whatever the finding raises, with the residual income computed on the new payment.
VA appraisal and underwriting
VA assigns a fee appraiser, the lender orders the appraisal, and the Notice of Value reports the reasonable value and any repairs VA’s property requirements demand. A value that holds leaves the loan as reviewed; a lower one resizes it; a repair finding schedules the work. Underwriting then confirms income, residual income, seasoning, the benefit test, and the payoffs.
Closing, rescission, and funding
The last step is the shortest: signatures at the table, the rescission period, then the disbursement. The settlement agent retires the old mortgage and any second lien from the proceeds, records the new one, and sends the Raleigh veteran the remainder; the old payment stops and the new one, with no monthly insurance, begins.
A brokerage built around equity lending.
In order of importance on a VA cash-out: every instrument is available, so the comparison is real; the file is placed across programs, so the cost is not one desk’s; and the terms are on paper before any fee changes hands.
Every route, one review
Because the cash-out, the streamline, and the home equity line are all arranged under one roof, the recommendation follows the arithmetic rather than the product a desk happens to sell. A Raleigh veteran sees the cash-out payment with the fee financed, the streamline payment with no cash, and the current payment plus a line, on one page.
Placed across wholesale programs
Several wholesale lenders write VA cash-outs, and their credit floors, overlays, and cost tiers differ at any given score. Lendmire places the Raleigh file with the program whose terms fit it, which is seldom where a single lender’s rate sheet would have landed it.
Terms in writing, before any fee
A review closes with written terms: the loan, the fee, the cash after costs, the payment, the ratio, and the residual income, each computed on a cautious reasonable value. The Raleigh veteran reads them first; only after agreeing the plan is worth an appraisal does anything get ordered or any fee get paid.
Trusted by veterans & families alike.
Raleigh VA cash-out refinance FAQs
The questions Raleigh veterans ask most about VA cash-out refinancing, answered in the order they usually come up.
What is a VA cash-out refinance, and who can use it?
For a Raleigh veteran it is the furthest-reaching cash-out available: the whole reasonable value, fee included, with no monthly insurance and a credit review that weighs residual income over the score. The entitlement earned by service is what the loan spends, and the COE is where it is proven.
How much cash can I take out with a VA refinance?
The Notice of Value fixes the ceiling, the fee tier takes its share inside it, and the cash is what remains after the balance and the closing costs. The calculator shows the Raleigh figures by tier beside the line-of-credit alternative.
How much is the VA funding fee on a cash-out, and who is exempt?
Rate by use of entitlement, financed inside the loan, waived for exempt veterans: that is the whole rule, and the figures are in the snapshot. The Certificate of Eligibility states the exemption and the prior use, so a Raleigh veteran should request it before counting on a particular tier.
How long do I need to have had my current loan before a VA cash-out?
Count from the current loan’s first payment due date and count the payments made; the later of the two thresholds in the snapshot must have passed. The appraisal and the entitlement do not shorten the clock.
What credit score do I need for a VA cash-out refinance?
VA sets no minimum credit score; the wholesale programs Lendmire places files with start at the decision score in the snapshot. Above that floor the score sets the cost of the loan, and the approval turns on residual income: the money left each month after the new payment, every other obligation, and the household’s living costs, measured against VA’s table for the region and the family size. A Raleigh veteran with a modest score and strong residual income is a routine file.
What is the net tangible benefit test?
A list of eight benefits, one of which must apply, documented by the lender and disclosed to the veteran twice. On a Raleigh cash-out the common ones are the end of mortgage insurance on a non-VA loan being replaced and a fixed rate in place of an adjustable one.
Does the home have to be my primary residence?
The Raleigh home has to be where the veteran lives. Second homes and rentals are outside the VA program; the conventional cash-out serves them at a lower cap.
When do I actually get the money?
Signing and funding fall on different days: the rescission window first, then the payoffs and the wire.
Should I use the VA streamline (IRRRL) instead?
Only if the current loan is already a VA loan and the goal is a lower rate or a fixed rate rather than cash: the streamline carries the smallest fee, needs no appraisal from VA, and goes through limited underwriting, but it returns no cash and cannot replace a non-VA loan. A Raleigh veteran who wants equity out, or who has a conventional or FHA loan, needs the cash-out. The review prices both when the current loan is VA.
What does a VA cash-out refinance cost to close?
The usual costs of a refinance plus the financed fee, with VA’s limits on what a lender may charge keeping them inside known bounds. Plan on the cash after the fee and the costs, not on the loan amount.
Equity in a Raleigh home, reached on the terms service earned.
Enter your Raleigh figures above, then ask for a review; the cap, the fee tier, the seasoning, the benefit test, and the residual income are checked against VA’s rules and the wholesale overlays, and what comes back is a written set of terms, not an estimate.
This guide covers Raleigh — for the statewide guidelines, markets, and scenarios, see VA Cash-Out Refinance in North Carolina, part of Lendmire’s VA cash-out refinance program.
Nearby markets in North Carolina: Cary · Durham · Greensboro · Winston-Salem · Charlotte
Related programs: Cash-Out Refinance · VA Loans · HELOC