The Quick Read: A VA cash-out refinance of an existing VA loan has to wait until the old loan is seasoned. Two tests apply together: the first payment due date must be at least 210 days before the new loan closes, and six monthly payments must have been made. The later of the two dates controls. The clock measures the age of the loan being paid off, not how long you have owned the home.
Key Takeaways
- Seasoning attaches to the loan being paid off, and it applies when that loan is VA-guaranteed.
- Both tests must be met on the closing date. Paying early does not shorten the 210-day count.
- Cash-out comes in two types, and the type decides what the borrower walks away with.
- A non-VA payoff does not trigger the VA seasoning test, though a lender may add its own rule.
- The servicing record is the proof. Check it before you apply.
What Does Seasoning Mean on a VA Loan?
Seasoning is a waiting period built into the age of the loan you are refinancing. It stops a borrower from closing one VA loan and refinancing it into another before the first has any real payment history.
VA Circular 26-19-05 says seasoning applies to cash-out refinances that pay off a VA-guaranteed loan. It also says a cash-out loan, Type I or Type II, is not eligible for a VA guaranty if the loan being refinanced is not seasoned on the title-recording date. That language is the center of the whole rule.
Two points trip people up.
First, this is not a lender overlay. The cash-out rule sits in 38 CFR 36.4306, and it binds every lender that wants the VA guaranty. Some pages online treat the wait as lender preference. That reading is wrong for a VA-to-VA cash-out.
Second, seasoning is not the same as how long you have owned the house. The clock belongs to the current VA loan, not to the property. Someone who bought with a VA loan seven months ago is measured from that loan’s start. Someone who has owned a home for ten years but just refinanced it into a new VA loan is measured from the start of the new note, so the ten years of ownership do not count toward the clock.
The Three-Part Test, Step by Step
Both tests must be met as of the closing date of the new loan.
1. The 210-day test. The due date of the first payment on the old loan must be at least 210 days before the new loan closes.
2. The six-payment test. Six monthly payments must have been made on the old loan.
3. The later date controls. Whichever test is met last sets your earliest eligible date.
This matters because the two tests are not the same clock. Make six payments early and you still have to wait out the 210 days. Pay on time every month and you land at roughly seven months, which is why mailers can show up before you are actually eligible.
The regulation words the test slightly differently in places. The cash-out text refers to the first monthly payment the borrower “made,” while other VA language speaks of the first payment due date. Some readers think the consecutive-payment wording applies to one cash-out type and the “made” wording to the other. That split is not something to lean on without checking the primary text, so treat it as a question for the lender to confirm. In practice the lender calculates your date from the servicing record, so the paperwork decides, not your memory of the calendar.
What the Clock Does Not Start From
- The closing date of the old loan.
- The date you took title.
- The date you applied for the new loan.
It starts from the first payment due date on the existing VA loan.
How the Dates Work in Practice
Here are three situations, described by timing only.
| Existing loan | Clock starts | Controlling test |
|---|---|---|
| Recent VA purchase loan | First payment due date | Usually the 210 days |
| Prior VA cash-out | First payment due date of that new note | Usually the 210 days |
| Prior VA streamline (IRRRL) | First payment due date of that note | Usually the 210 days |
A prior refinance restarts the count, because the refinance created a brand-new loan. A borrower who closed a streamline last year and now wants cash out is measuring from the streamline note, not from the original purchase.
The six-payment test rarely controls for a borrower who pays on time, since six monthly payments fit comfortably inside the seasoning window. It starts to matter when payments are missed or skipped, because a month that was not paid does not count as a payment made.
Type I vs. Type II Cash-Out
VA classifies cash-out loans by comparing the new loan to the payoff, per VA Circular 26-19-05.
| Feature | Type I | Type II |
|---|---|---|
| New loan vs. payoff | Does not exceed payoff | Exceeds payoff |
| Funding fee counted? | Yes, in the new loan amount | Yes, in the new loan amount |
| Cash to borrower | None from the loan amount | Yes, the excess |
Type II is the one that puts cash in your hands. Across the wholesale programs Lendmire places VA files with, the VA cash-out reaches 100% of the appraised value including the financed fee, and it refinances any loan type into VA. Those figures are subject to lender guidelines and full file review.
For a loan larger than the payoff, the regulation ties the guaranty to the later of two dates: 210 days from the first monthly payment, or the date the sixth monthly payment was made. Confirm the exact wording on the eCFR page before relying on a quote, since the excerpt is long and the section has several parts.
When the Payoff Is Not a VA Loan
The VA seasoning test attaches to refinancing an existing VA loan. If you are moving a conventional, FHA or USDA loan into a VA cash-out, that particular 210-day and six-payment test does not apply the same way. A net tangible benefit is still required, per VA’s cash-out user guide.
Here is the catch. A lender may still add its own ownership or payment-history requirement. That is lender policy, not VA policy, and it varies. If a lender tells you to wait on a non-VA payoff, ask whether it is a VA rule or a house rule. The answer tells you whether another lender might see it differently.
| Question | VA-to-VA payoff | Non-VA payoff |
|---|---|---|
| VA seasoning test | Applies | Not the same test |
| Net tangible benefit | Required | Required |
| Lender overlay possible | Yes | Yes |
What Delays or Resets the Clock
Several things change the date, and most come from the payment history.
- A missed or late payment. The count of payments made can lag the calendar. A month you skipped is a month that does not count toward the six.
- Forbearance or hardship months. Treat these carefully. Payments not made during a plan may not count the way you expect, so ask the lender how it counts them.
- A prior refinance. A new VA loan means a new first payment date and a new clock.
- A transfer of servicing. The loan stays the same, but the records have to follow. Gaps in the history are the usual problem.
- Construction-to-permanent loans. VA’s cash-out rule also covers refinancing a construction loan, whether or not the principal amount changes, per VA Circular 26-18-30.
Closing before the loan is seasoned is the costly mistake. A loan that misses the requirements can lose its VA guaranty, which is a problem for the lender and for you.
Documents a Lender Will Ask For
Expect a request for:
- The payment history on the existing VA loan, from the servicer.
- The note date and first payment due date.
- Income and credit documentation.
- A full VA appraisal, since cash-out sets value on a VA appraisal.
- The Final Cash-Out Disclosure, which VA’s user guide says is uploaded to appraisal correspondence.
If the servicer’s history looks incomplete, ask for a corrected statement before you apply. A date you cannot document is a date the lender cannot use.
Seasoning vs. Look-Alike Rules
Readers mix up waiting rules. They are not the same.
| Rule | What it measures |
|---|---|
| VA seasoning | Age and payment history of the VA loan being paid off |
| IRRRL seasoning | Same later-of-two-dates test, on a streamline |
| Purchase flip rules | How recently a seller acquired the property |
| Entitlement restoration | When used entitlement becomes available again |
The IRRRL carries the same seasoning of the later of 210 days from the first payment and the sixth payment. It also requires a lower rate or a move from adjustable to fixed, no VA appraisal, and a net tangible benefit. VA Circular 26-19-22 warns lenders not to confuse cash-out guidance with IRRRL guidance. Borrowers should keep them apart too.
Beyond Timing: What Else the Loan Must Pass
Seasoning gets you to the starting line. After that, the cash-out has to pass other tests.
Net tangible benefit. The refinance has to be in your financial interest. The regulation’s list of qualifying benefits includes eliminating monthly mortgage insurance, a shorter term, a lower payment, or converting an adjustable loan to fixed, per 38 CFR 36.4306.
Recoupment. Fees and closing costs have to be recovered within 36 months through lower regular payments. For a loan larger than the payoff, the regulation treats the costs as recouped if the other requirements are met.
Loan-to-value. The new loan, including the funding fee, cannot exceed 100% of reasonable value. Any piece of the fee that pushes the loan past 100% is paid in cash at closing. Many lenders set a lower cap than VA does, so a lender saying 90% is not contradicting the regulation.
Funding fee. Cash-out refinance carries a 2.15% fee on first use and 3.3% on later use, reviewable, and waived for veterans receiving compensation for a service-connected disability and the other exempt groups.
Credit and income. Across the wholesale programs Lendmire works with, the decision-score floor is 580, and residual income is the controlling test. The 41% debt-to-income figure is a guideline, not a cap. A higher ratio needs residual income well above the table. Your certificate of eligibility decides eligibility, and service requirements are VA’s rules. All of it is subject to lender guidelines and full file review.
The full program details sit on Lendmire’s VA cash-out refinance program page.
What to Do While You Wait
1. Pull the payment history from your servicer and confirm the first payment due date.
2. Count the payments made and mark any month that was skipped, late or part of a plan.
3. Mark your earliest date from both tests and use the later one.
4. Decide what the cash is for. The funding fee and the larger balance mean the cash has a cost. Know the purpose first.
5. Check your benefit. Ask whether the new loan removes mortgage insurance, shortens the term, lowers the payment or fixes an adjustable loan.
6. Gather income and credit documents so the file is ready when the date arrives.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Seasoning: The required age and payment history of the loan being refinanced before a new VA loan can be guaranteed.
Type I cash-out: A refinance where the new loan, including the funding fee, does not exceed the payoff.
Type II cash-out: A refinance where the new loan, including the funding fee, exceeds the payoff and puts cash in your hands.
Net tangible benefit: A measurable gain to the borrower that justifies refinancing.
Recoupment: Recovering the fees and closing costs through lower regular monthly payments.
IRRRL: The VA streamline refinance of an existing VA loan, with no cash out.
Frequently Asked Questions
Can I cash out right after buying with a VA loan?
No. A VA-to-VA cash-out is blocked until the purchase loan is seasoned. That means 210 days from the first payment due date and six payments made, with the later date controlling.
Does making six payments early let me refinance sooner?
No. Both tests must be met on the closing date. Early payments can satisfy the count, but they do not shorten the 210-day period.
Is the waiting period set by the lender or by VA?
For a VA-to-VA cash-out, it comes from federal regulation and VA policy, so it applies to every lender seeking the guaranty. A lender can add its own conditions on top, and those differ from one lender to the next.
Does seasoning apply if my current loan is conventional or FHA?
The VA seasoning test targets the refinance of an existing VA loan, so it does not work the same way on a non-VA payoff. A net tangible benefit is still required, and a lender may set its own ownership or payment-history rule.
Do missed payments or forbearance change my date?
Yes, they can. A payment not made does not count toward the six, so your count can fall behind the calendar. Ask the lender how it treats forbearance months and have the servicer’s history in hand.
Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. For deeper timing questions, see Lendmire’s guide How to Time a VA Cash-Out Around Seasoning After a Purchase or IRRRL.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
3. VA Cash-Out Refinance User Guide
This article is part of Lendmire’s VA Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: VA vs Conventional Cash-Out Requirements for a Veteran · VA Cash-Out Requirements for a New COE and Remaining Entitlement · VA Cash-out Refinance To Pay Off A Non-va Loan: Type I Vs Type II Explained
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.