The Quick Read: VA’s federal waiting period applies only when the loan being paid off is itself a VA loan. When the old loan is conventional or FHA, VA’s own quick-reference guide lists no seasoning certification, so no federal clock runs. That does not mean there is no wait. The lender placing the new loan can add its own timing or payment-history conditions, so ask about them before you apply. This article is about moving into a VA cash-out loan, not about switching to FHA or conventional.
Key Takeaways
- The 210-day, six-payment test is a rule for VA-to-VA cash-out refinances, not for conventional or FHA payoffs.
- A lender’s own conditions can still create a wait. These vary by lender, so confirm them up front.
- Moving from FHA to VA is handled as a VA cash-out refinance, even if you take no cash out.
- Leaving FHA can remove monthly FHA mortgage insurance. It does not earn you a refund of the upfront premium.
- A VA loan cannot exceed the home’s reasonable value, and any financed funding fee has to fit under that cap.
Can a Conventional or FHA Borrower Use a VA Cash-Out Loan at All?
Yes, if you hold a VA Certificate of Eligibility. VA’s cash-out loan page says the product can take equity out for debts, school, or repairs. It can also refinance a non-VA loan into a VA-backed one.
The home is generally one you live in. Across the wholesale programs Lendmire places consumer files with, owner-occupancy is the starting point for any refinance on a primary residence. Lendmire is a mortgage broker licensed for consumer lending in 16 states. It arranges FHA, VA, conventional and jumbo loans through wholesale lenders and does not lend directly.
Some borrowers in this position are also asking whether to stay in FHA and pull cash out there. Lendmire’s FHA cash-out refinance program reaches 80% LTV on a home you have owned and occupied for 12 months before the case number. VA can reach higher against the home’s reasonable value. That difference, plus mortgage insurance, is usually what drives the comparison.
Two Clocks, Not One
Most confusion comes from blending two separate timelines.
- The waiting clock is the period before you are eligible to close at all.
- The processing clock is the work of application, appraisal, underwriting and closing once you are eligible.
This article covers the waiting clock in detail. Processing time depends on the lender, the appraisal, and how quickly documents come in, and no honest answer exists as a universal number. Lendmire does not promise one. You will receive a Loan Estimate and a Closing Disclosure as the deal works, as with any consumer mortgage.
Which Waiting Rule Applies to Which Payoff?
Start with what you are paying off. The old loan’s type decides whether VA’s federal seasoning rule applies.
| Old loan | VA seasoning rule? | What can still add a wait |
|---|---|---|
| Conventional | No federal test listed | Lender conditions, loan terms |
| FHA | No federal test listed | Lender conditions, loan terms |
| Existing VA loan | Yes, 210 days and six payments | Federal rule is the floor |
VA Circular 26-19-05 says loan seasoning applies to cash-out refinances of a VA-guaranteed loan. A refinance cannot receive the VA guaranty if the loan being paid off was not seasoned at closing. The quick-reference guide for lenders lists a seasoning certification for VA-to-VA refinances. Its paths for non-VA payoffs list only the net tangible benefit and the two cash-out disclosures.
Treat any flat statement that all borrowers must wait a fixed number of months before a non-VA payoff as unverified.
What Can Still Slow a Conventional or FHA Payoff?
A missing federal clock leaves room for other timing rules. These are the usual places they come from.
- The new lender’s conditions. Some lenders ask for a clean recent payment history or a stretch of ownership before they will take a cash-out file. Others do not.
- The old loan’s terms. A prepayment clause, where one exists, can change what makes sense on timing.
- Occupancy and documentation. The home generally has to be your residence, and the file has to show it.
- The appraisal and property condition. VA sets a reasonable value, and the loan cannot exceed it.
A practical step: before you pay for anything, ask any lender you are considering whether they add a waiting period on a conventional or FHA payoff. Get the answer in writing if it affects your plans.
How Does the VA-to-VA Clock Work?
If the loan being replaced is a VA loan, the rule is firm. VA Circular 26-19-22 defines seasoning with two tests, and both must be true at closing:
1. The first payment due date on the old loan is at least 210 days before the new closing. 2. Six consecutive monthly payments have been made on that loan.
The clock starts at the first payment due date, not the closing date. Because a first payment typically comes due a month or two after closing, the real wait from closing runs longer than 210 days. Making payments early does not shorten it, since the day count and the payment count are separate tests.
This is federal law, not a lender preference. VA’s interim final rule implements the statute that defines net tangible benefit, recoupment and seasoning for cash-outs.
A modeled walk-through: Say the old VA loan closes in early spring and the first payment comes due the next month. Count 210 days from that due date, not from closing. Then confirm six consecutive payments are on the record. The earliest eligible closing is whichever test finishes later. A lender should check the payment ledger or a credit supplement, because a seasoning miss cannot be cured after the fact.
The Step-by-Step Path Into VA Cash-Out
Here is how a conventional or FHA payoff moves through the process.
1. Eligibility. You obtain your Certificate of Eligibility.
2. Classification. VA sorts the loan as Type 1 if the new loan is at or below the payoff, or Type 2 if it exceeds the payoff.
3. Net tangible benefit. The loan has to give you at least one qualifying benefit, which the lender tests and discloses to you. Examples include dropping monthly mortgage insurance, a shorter term, or a lower payment.
4. Disclosures. Initial and final cash-out disclosures are placed in the file.
5. Appraisal and ceiling. A VA appraisal sets reasonable value. The loan, including a financed funding fee, cannot exceed 100% of it.
6. Full underwriting. Credit, income and residual income are reviewed. VA sets no minimum credit score, though individual lenders may.
7. Payoff and guaranty. The old loan is paid off and VA issues its guaranty.
FHA borrowers have a natural net tangible benefit: removing monthly FHA mortgage insurance. The lender confirms the benefit result on your actual file, so do not assume it.
What Happens to FHA Mortgage Insurance?
Monthly FHA mortgage insurance stops when the FHA loan is paid off. The VA program itself has no monthly mortgage insurance. That is often the main reason FHA borrowers consider the move.
The FHA upfront premium is a different matter. On FHA loans it is 1.75% of the base loan and is typically financed. A CRS overview of FHA loans explains that a refund credit on that premium applies only when you refinance an FHA loan into another FHA loan within three years. Moving from FHA to VA does not qualify, so the premium you paid is gone.
If you are deciding whether to stay in FHA instead, two Lendmire pieces explain the insurance side. One covers how mip reshapes a payment moving from conventional to FHA cash-out. The other covers planning when mortgage insurance ends.
What Does the VA Funding Fee Do to the Balance?
VA charges a one-time funding fee on cash-out refinances. It is higher for subsequent use of the benefit than for first use. VA’s official fee schedule in Circular 26-23-06 lists the current percentages. Borrowers who receive VA compensation for a service-connected disability, and some others, are exempt.
A financed fee is added to the loan balance. It still has to fit under the 100% reasonable-value ceiling. Closing costs are separate, and VA warns they can add up to thousands of dollars. The IRRRL is a separate, lower-fee product for existing VA loans only.
Where the General Rule Breaks
- A VA loan being paid off. Seasoning applies whether the refinance is Type 1 or Type 2.
- A prior VA use. It can move your funding fee to the higher subsequent-use tier.
- State rules. Some states can be tighter on cash-out leverage than VA is. Lendmire’s consumer lending is licensed in 16 states, so which state you live in matters.
- Taking no cash. An FHA-to-VA move is still processed as a cash-out refinance, even if you take nothing out. It is not an IRRRL.
- A loan close to its ceiling. If the balance plus a financed fee would exceed reasonable value, the numbers have to change.
Key Terms Defined
Seasoning: The required time and payment history on the loan being paid off before a refinance can be guaranteed.
Net tangible benefit: A measurable improvement the new loan must give you, such as dropping monthly mortgage insurance.
Recoupment: The time it takes for savings to repay the fees and charges of the new loan.
Funding fee: The one-time VA charge on most VA loans, with exemptions for certain borrowers.
Reasonable value: The appraised value VA uses to cap the loan amount.
Certificate of Eligibility: The VA document that confirms your service and entitlement.
Should You Wait Out Any Timing, or Start Early?
It depends on what the wait is made of. If you are leaving a conventional or FHA loan, no federal clock forces you to sit. A lender may still ask for something, such as a payment record or time in the home. Find that out first, then decide.
If the new loan’s benefit is thin, waiting may not cost you anything. The test is whether the loan gives you a real benefit and whether the savings repay the closing costs over a reasonable period. A VA Type 1 loan carries a recoupment test, so a borrower who plans to move soon may find the math does not hold. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Does VA make me wait 210 days before moving from a conventional loan?
No. The 210-day and six-payment test applies to VA-to-VA cash-out refinances. For a conventional payoff, VA lists no seasoning certification, although the lender placing your loan may set its own conditions. Ask about those before applying.
Is going from FHA to VA the same as a VA streamline?
No. The IRRRL is only for existing VA loans. An FHA-to-VA move is processed as a VA cash-out refinance even if you take no cash, which means the net tangible benefit test and cash-out disclosures apply.
Do I get my FHA upfront premium back when I leave for VA?
No. The refund credit applies only when an FHA loan is refinanced into another FHA loan within three years. Leaving for VA ends the monthly FHA insurance but does not refund the upfront premium.
Does making six payments quickly shorten a VA-to-VA wait?
No. Both tests must be met, and the day count runs from the first payment due date. Extra early payments do not move that date.
Can the funding fee push my loan above the home’s value?
No. VA caps the loan at 100% of reasonable value, and a financed fee has to fit under that ceiling. Any amount above it would need to be paid in cash or the loan amount reduced.
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, subject to lender guidelines and full file review. A homeowner who already knows the old loan’s type and the state they live in has most of what is needed to start.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
4. Federal Register – VA cash-out interim final rule
6. VA Circular 26-23-06 Exhibit B
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Should a Veteran Refinance an FHA Loan Into a VA Cash-Out? · Does Lender Choice Matter for a Conventional or FHA to VA Cash-Out? · How Much Equity an FHA Condo Needs for a Conventional Cash-Out
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.