The Quick Read: You qualify when two clocks have run on the loan you are paying off and the file passes full underwriting. If that loan is a VA loan, you need the later of six payments made or 210 days from your first payment due date. The date check comes first. Then comes the usual file review: entitlement, credit, income, residual income and a VA appraisal.
- The 210 days start at the first payment due date of the loan being paid off, not at closing.
- Six payments must be made too. Whichever test finishes later controls.
- The wait applies only when you are paying off a VA loan. Converting a conventional, FHA or USDA loan into VA skips it.
- The new loan can reach 100% of the appraised value, including the financed funding fee.
- The loan also has to show a net tangible benefit, meaning a real, listed advantage over the loan you have.
What Is a VA Cash-Out Refinance?
A VA cash-out refinance replaces your current mortgage with a new VA-backed loan and lets you take equity out in cash. It also works for homeowners who never had a VA loan. A conventional, FHA or USDA loan can be refinanced into VA.
VA cash-out estimate
Seeded with an example value, a typical balance, and a round cash request at the first-use fee; change any field.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the full-value VA cap with the first-use funding fee financed, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. 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.
Across the wholesale programs we place VA files with, the shape is consistent. Financing reaches 100% of the appraised value, with the financed funding fee counted inside that number. There is no mortgage insurance. There is no VA loan limit when you have full entitlement. If you have only partial entitlement left, a down payment may be required, and that is a conversation to have with a loan officer.
Lendmire’s VA cash-out refinance program page covers the program features. This article covers the part people trip over: the dates, and the steps that follow.
People often confuse this loan with the IRRRL, the VA’s streamline refinance. The IRRRL swaps an existing VA loan for a better one with no VA appraisal. A cash-out is a full new underwriting. The two share the same seasoning clock, but the tests that follow are different.
What Are the Two Seasoning Tests?
Seasoning is the minimum age a loan must reach before it can be refinanced. For a VA-to-VA cash-out, the loan being paid off must pass two tests. The first is 210 days from its first payment due date. The second is six monthly payments actually made.
Both tests must be met. The later one controls. That is why “six payments is enough” is a myth. For a borrower who pays on time, the 210 days usually run past the sixth payment, so the calendar is typically the binding test. But a borrower who paid late or skipped can find the six-payment count finishing second.
The seasoning requirement applies to VA-to-VA refinances only. You can read the underlying definition in VA Circular 26-19-22, which treats seasoning as the age of the loan being refinanced. If that loan is not seasoned by the date the new loan closes, VA will not back the new loan.
Two details change your planning:
1. The clock starts at the first payment due date. Your closing date on the original purchase is not the start. On a purchase loan, the first payment is usually due about a month and a half after closing, so the clock begins later than many people expect.
2. The finish line is the note date of the new loan. That is the date you sign the new promissory note. Plan so the note date, not just the application date, lands after the 210th day.
How Do You Calculate Your Own Earliest Date?
Take the first payment due date on your current VA loan and add 210 days. That is the earliest note date. Then count your payments made. If you have six or more by that date, the calendar controls. If not, the date of the sixth payment controls.
Run the numbers on a first payment due June 1. Six payments are due June through November, so by December 1 the count is done. Adding 210 days to June 1 lands on December 28. The earliest note date is December 28, and the calendar controls.
Here is how four common situations play out.
| Scenario | Six-payment test | 210-day test | What controls |
|---|---|---|---|
| Every payment made on time | Done around month six | Done at day 210 | The 210 days |
| Two payments skipped, caught up later | Finishes after day 210 | Done at day 210 | The sixth payment made |
| Six payments prepaid early | Done early | Still runs to day 210 | The 210 days |
| Recent VA purchase, due date still ahead | Not started | Starts at first due date | Map the date first |
A few notes on that table. Extra payments can finish the six-payment count early. They do not shorten the 210 days, because that count measures calendar time. And a late or missed payment does more than shift the count. It can hurt your credit, and many lenders set their own payment-history standards on top of VA’s.
Does the Wait Apply If You’re Not Paying Off a VA Loan?
No. The seasoning test applies when the loan being refinanced is itself a VA loan. If you are moving a conventional, FHA or USDA mortgage into a VA cash-out, VA does not impose the 210-day and six-payment wait on that old loan.
That does not make the loan a free-for-all. The net tangible benefit test and the required disclosures still apply. Lenders and their investors may also set their own rules, like a minimum time on the existing mortgage or a clean recent payment history. Those are overlays, not VA rules, and they differ from one lender to the next. Some lenders also set a lower cap on loan-to-value than VA’s 100%. Across the wholesale programs we use, the VA cash-out reaches the full 100% of value.
| Factor | Paying off a VA loan | Paying off a non-VA loan |
|---|---|---|
| Six-payment and 210-day wait | Applies | VA does not require it |
| Net tangible benefit | Required | Required |
| Appraisal and full underwriting | Required | Required |
| Lender overlays | Possible | Possible |
What Else Do Lenders Check Beyond Timing?
Timing opens the door. Underwriting decides the file. A cash-out is fully underwritten, so the reviewer looks at your credit, income, assets and the property.
On the wholesale programs Lendmire places VA loans with, the decision-score floor starts at 580. VA itself sets no minimum score, and some lenders set a higher floor. These are guidelines, and every file gets a full review.
The controlling test is residual income. That is what is left of your monthly income after taxes, debts and the home’s costs, measured against a table that varies by family size and region. The 41% debt-to-income figure is a guideline, not a cap. A ratio above it can work if residual income sits well above the table.
The other pieces are these:
- Entitlement. You need a Certificate of Eligibility from VA and enough entitlement for the loan. VA decides eligibility, and its service rules apply.
- Appraisal. A VA appraisal sets the value. The 100% cap includes the financed funding fee, so a low appraisal can shrink or kill the cash-out.
- First lien. The new loan must sit in first position. Other lienholders on the property must subordinate.
- Occupancy. The home is your primary residence.
What Is the Net Tangible Benefit Test?
The net tangible benefit test asks whether the new loan gives you a real, defined advantage. VA lists eight acceptable benefits, and the loan must meet at least one. Examples include moving to a shorter term, converting from an adjustable to a fixed loan, and paying off a temporary construction loan.
The details sit in VA Circular 26-19-05, which also defines the two cash-out types. A Type I cash-out does not exceed the payoff of the old loan, including the funding fee. A Type II cash-out does exceed it, which is what puts cash in your hand. Seasoning and the benefit test apply to both types when a VA loan is being paid off.
The lender must give you a comparison of the old loan and the new one at application and again at closing. Read it side by side. It exists so you can see what you are giving up.
One clarification that trips up borrowers who read lenders’ pages. The rate-reduction and fee-recoupment tests belong to the IRRRL. They do not apply to the VA cash-out program Lendmire arranges. The cash-out test is the net tangible benefit list.
What Does the Funding Fee Do to Your Numbers?
The funding fee is a one-time VA charge. It can be rolled into the loan. On a cash-out refinance it is 2.15% for first use and 3.3% for subsequent use, per VA News. The IRRRL fee is lower, at 0.5%.
Veterans who receive compensation for a service-connected disability are exempt, along with a few other groups. Exempt borrowers pay no funding fee. If you think you might be exempt, confirm it on your VA documents before you budget.
The financed fee counts inside the 100% cap. Roll it in and the balance goes up. A longer term can also raise lifetime interest cost. That is why the comparison disclosure matters. Other closing costs are paid in cash or out of your proceeds, and they appear on your Loan Estimate and Closing Disclosure.
How Do You Apply, Step by Step?
1. Get your Certificate of Eligibility. Your lender can usually pull it, or you can request it from VA. Confirm your entitlement.
2. Map your dates. Find the first payment due date on your current loan. Add 210 days. Count your payments made.
3. Choose your goal. Decide how much cash you need and what you want the new loan to do, like a shorter term or a fixed structure.
4. Gather documents. Typical items include recent pay stubs, W-2s or other income proof, bank statements, your current mortgage statement, homeowners insurance and ID. A lender may ask for more.
5. Apply and get your disclosures. You receive the Loan Estimate and the old-versus-new comparison.
6. Complete the appraisal and underwriting. A VA appraisal is ordered. The lender reviews credit, income, assets and residual income.
7. Confirm the seasoning date before closing. The lender certifies seasoning to VA on VA-to-VA files. Make sure the note date falls after both tests are met.
8. Close. The new loan pays off the old one. Cash-out proceeds are disbursed. The funding fee can be financed.
Lenders do not run the same calendar. Some will begin the application before the seasoning date as long as the note date lands after it. Others want the clock finished first. Ask yours which approach they take before you assume.
Where Does the General Rule Break?
The seasoning rule is simple, but a few situations bend it.
- Delinquent loans. A VA loan that is behind has extra steps on the lender side. Bring it current before you plan on a cash-out.
- Surviving spouses. A surviving spouse who was on the original loan can do an IRRRL without a new eligibility application. A surviving spouse who was not on the loan can do only a cash-out, after qualifying as a surviving spouse. That detail comes from VA’s Buyer’s Guide.
- Repairs and alterations. VA can back a cash-out on a home you already own and live in that needs alterations or repairs. Talk to a loan officer about how the work is documented.
- State rules. Some states have their own limits on cash-out. Ask early.
- Authority differences. An IRRRL and a cash-out are treated differently on lender authority. The VA Lenders Handbook keeps the guidance for each separate, and good lenders do too.
The honest read on the “wait or go” call: if your old loan is not seasoned yet, waiting is cheap and a premature application can sink the file. A non-VA payoff is a different animal. If you are close to the date and the old loan is VA, get the paperwork ready and plan the note date for day 211 or later.
What Offers Should Make You Pause?
Be careful with “no out-of-pocket cost” offers, cash-back promises and pitches to skip a payment. Costs do not disappear. They get built into the loan balance or the pricing. And “skipped payments” mean interest keeps running.
Misleading comparisons are another warning sign, such as setting a “new” payment that left out taxes and insurance next to an old payment that included them.
So compare like with like. Check that both payments include the same pieces. Look at the term, the balance and the total cost. If a lender urges you to refinance again soon after closing, ask what you are gaining.
Key Terms Defined
Seasoning: The minimum age a loan must reach before it can be refinanced. For VA-to-VA cash-out, it means the later of 210 days from the first payment due date or six payments made.
Note date: The date you sign the promissory note for the new loan. The 210 days must be complete by this date.
Net tangible benefit: A real, listed advantage the new loan must give you. VA names eight, and the loan must meet at least one.
Residual income: Monthly income left after taxes, debts and housing costs. It is the controlling test in VA underwriting.
Entitlement: The amount of your VA benefit available to back a loan.
Funding fee: A one-time VA charge that can be financed. Veterans with a service-connected disability rating that carries compensation are generally exempt.
Frequently Asked Questions
Can I do a VA cash-out refinance right after buying with a VA loan?
No, not in that window. The loan from your purchase has to pass both tests before it can be paid off by a VA cash-out. The 210 days start at the first payment due date, which comes after closing. Map that date before you apply, because a note date that lands too early can leave the loan ineligible for VA backing.
Does paying extra shorten the wait?
Only part of it. Extra payments can finish the six-payment count sooner. They do not change the 210-day count, which measures calendar time. If your first six payments are done early, the 210 days still control your earliest note date.
Do I need a VA loan now to get a VA cash-out?
No. A VA cash-out can refinance a conventional, FHA or USDA loan into a VA loan. The seasoning wait applies only when the loan being paid off is a VA loan. You still need a Certificate of Eligibility, enough entitlement, and a loan that meets the net tangible benefit test.
Is the 90% figure I keep hearing VA’s limit?
No. VA’s cash-out can reach 100% of the appraised value, with the financed funding fee counted inside that. Some lenders set a lower cap as their own rule. Across the wholesale programs Lendmire places VA files with, the cash-out reaches 100%, subject to lender guidelines and full file review.
Can I get cash out if my appraisal comes in low?
Possibly, but the cash shrinks. The loan, including the funding fee, cannot exceed 100% of the appraised value. A lower value leaves less room, and in some cases none. Ask your loan officer what range your equity should fall in before you order the appraisal.
Planning Your Decision
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. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
2. VA
4. VA News: funding fee, who pays and who is exempt
This article is part of Lendmire’s VA cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Remove a Co-Borrower With a VA Cash-Out Refinance? · VA Cash-Out Refinance Requirements Within a Year of Buying · How to Qualify and Apply for a VA Cash-Out Refinance Under Type 1 and Type 2 Rules
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.