The Quick Read: Six payments alone do not qualify you. When the loan you are paying off is already a VA loan, two tests must both be met: six payments made, and 210 days passed since your first payment came due. The calendar usually decides it, because six monthly payments take about six months and 210 days takes about seven. If the loan you are paying off is conventional, FHA or USDA, the VA seasoning test does not apply, though the lender may set its own waiting period.
What Is a VA Cash-Out Refinance?
A VA cash-out refinance replaces your current mortgage with a new VA-backed loan, and you can take cash from your home equity in the process. It can also move a non-VA mortgage into the VA program. VA describes it as a new loan on different terms, arranged through a private bank, mortgage company or credit union, not through VA directly.
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.
The program has a few features that make it different from other cash-out options:
- It can reach 100% of the home’s appraised value, including the financed funding fee.
- There is no monthly mortgage insurance.
- There is no VA loan limit when you have full entitlement. Entitlement is the amount of the loan VA backs, and your Certificate of Eligibility shows it.
- It can refinance any loan type into a VA loan.
Lendmire’s VA cash-out refinance program page covers how those pieces fit together. Everything here is subject to lender guidelines and a full file review, and none of it is a commitment to lend.
Why “Six Payments” Is Only Half the Rule
The six-payment idea comes from a real rule, but people tend to remember half of it. The seasoning test, meaning the required age of the loan you are refinancing, has two parts. You must have made six payments, and the new loan’s note date must fall at least 210 days after the first payment on the old loan came due. The note date is the date you sign the new loan. Both parts apply.
Three details trip people up:
- The clock starts at the first due date. It does not start at closing on your purchase. A loan that closed in January often has a first payment due in March, so the 210 days begin in March.
- Paying early does not help. Paying ahead or adding extra principal does not shorten the 210 days. Time is time.
- Days can outlast payments. You can hit six payments and still be a month short on the day count.
One more point. The test applies only when the loan being paid off is a VA loan. That is why you need to know which loan you hold before you plan anything.
Which Loan Are You Paying Off?
This one question decides which path you are on. Check your mortgage statement or closing documents for the loan type.
| Loan being paid off | VA seasoning test applies? | What else to expect |
|---|---|---|
| VA loan | Yes, 210 days and six payments | Net tangible benefit, full underwriting |
| Conventional | No | Lender may add its own waiting period |
| FHA | No | Lender may add its own waiting period |
| USDA | No | Lender may add its own waiting period |
The VA test does not apply to non-VA payoffs, but the other steps still do. You still need a net tangible benefit and the required disclosures. Some lenders and the investors who buy their loans also set a waiting period of their own. Lender caps and waits that go beyond VA’s are lender policy, not VA rules, so ask which one you are hearing about.
Calculating Your Own Earliest Date
Here is a method you can do on paper. Find the date your first payment came due, not the date you closed. Add 210 days. Then confirm you have made six payments by that date. The later of the two dates is your earliest eligible note date.
Run it three ways, using modeled dates:
1. On-time payer. Your first payment came due March 1. The 210th day after that is September 27 in a non-leap year. Your sixth payment came due in August, so the day count is the limit. Your earliest note date is late September.
2. Paid ahead. Same first due date, but you sent extra principal every month. Nothing moves. The 210 days still run from March 1, so the date is still late September.
3. One late payment. Same first due date, but one payment was late. The day count may still be met on the same date. The payment history is a separate question, and the lender decides how it views the late payment. Some lenders also apply stricter standards than VA does. If this is you, raise it before you apply, not after.
Notice what scenario two shows. Paying more does not buy you time. Planning around the calendar does.
What Else the Lender Checks
Timing is the first gate, not the only one. After that, the lender looks at the same things it would on a VA purchase.
Eligibility and entitlement. You need a Certificate of Eligibility (COE). VA decides eligibility, and service requirements are VA’s rules. Your COE also shows how much entitlement you have left, which matters if you have used some of it.
Credit. VA sets no minimum score of its own, but lenders do. Across the wholesale programs Lendmire places VA loans with, the decision-score floor starts at 580. Lenders may set a higher floor.
Income and residual income. Residual income is the money left each month after your debts, housing costs and living expenses. It is the controlling test on VA loans. The 41% debt-to-income figure is a guideline, not a cap. A ratio above it needs residual income well above the standard table.
Occupancy. VA cash-out is built for a home you own and live in. Occupancy also decides what leverage is available, so confirm it with your loan officer.
Appraisal. VA requires a full appraisal on a cash-out. An IRRRL, VA’s streamlined rate-reduction refinance, does not. The appraised value sets how much equity you can reach.
How the Loan Is Underwritten, Step by Step
Here is what happens inside the file once you apply. The VA Lenders Handbook, Chapter 6 is the lender’s rulebook for this. It calls for full credit underwriting on every cash-out type.
1. Payoff review. The lender confirms which loan is being paid off and whether the VA seasoning test applies.
2. Eligibility check. The lender pulls or reviews your COE and your entitlement.
3. Classification. The lender classifies the loan by comparing the new loan amount to the payoff of the old one. When the new loan does not exceed the payoff, it is a limited cash-out, called Type I. When it exceeds the payoff, it is Type II. VA’s lender conference material lays out both types.
4. Net tangible benefit test. Covered in the next section.
5. Disclosures. The lender gives you a disclosure showing the benefit met, the payoff amount against the new loan amount, and the old and new loan type, term and rate structure.
6. Appraisal and underwriting. You pay for the appraisal up front. The underwriter reviews credit, income, residual income and the property.
7. Seasoning certification. On a VA-to-VA cash-out, the lender certifies seasoning in the file. Seasoning problems cannot be cured later, which is why lenders are strict about the date.
8. Closing. The funding fee can be financed, so you do not pay it at the table, and other allowable costs can be included in the new loan.
Only lenders with VA automatic authority can close cash-outs on their own. That is one reason to work with a broker who knows which wholesale lenders hold it.
The Net Tangible Benefit Test
The new loan has to be in your financial interest. The test is not a formality. VA’s rule lists eight possible benefits, and the new loan has to meet at least one. A few examples:
- Eliminating monthly mortgage insurance from the old loan.
- Moving to a shorter term.
- Moving from an adjustable rate to a fixed rate.
A loan-to-value measure shows up in the rule as one factor among several, not as a hard cap. The tests that apply to a rate-reduction refinance, the half-percent rate drop and the fee-recoupment test, are IRRRL rules. They do not apply to the VA cash-out.
Be careful about the word “lower.” A lower monthly payment does not make a cheaper loan. Stretching the term or rolling the funding fee into the balance can lower a payment and still cost more over time. Ask for the comparison on the Loan Estimate, not the sales pitch.
Type I vs Type II at a Glance
| Feature | Type I | Type II |
|---|---|---|
| New loan vs payoff | Does not exceed payoff | Exceeds payoff |
| Cash to you | None or minimal | Yes |
| Net tangible benefit | Required | Required |
| VA seasoning on VA payoff | Applies | Applies |
A cash-out in the everyday sense, where you walk away with money from your equity, is Type II. The seasoning rule is the same for both when the old loan is a VA loan. Lender classification can also affect disclosure and documentation steps, so ask your loan officer which type your file will be.
Where the General Rule Breaks
A few situations bend the usual path.
Non-VA payoff. No VA seasoning, but the benefit test and disclosures still apply. Some lenders add their own waiting period, so ask before you assume there is none. Some websites claim VA sets no waiting period at all for cash-outs. That is wrong when you are paying off a VA loan.
Seasoning failures. A missed date does not get a pass. VA treats seasoning errors as incurable, and the lender is expected to sign an indemnification agreement for the life of the loan if one slips through. No lender wants that risk, so a note date one day early gets pushed.
Surviving spouse. If a surviving spouse was not on the original VA loan, VA’s Buyer’s Guide says only a cash-out refinance is available, subject to surviving-spouse qualification.
Construction-to-permanent. The rule includes benefit criteria that fit a borrower moving from a conventional interim construction loan into a permanent VA loan.
IRRRL contrast. If you only want a lower payment or a fixed rate on an existing VA loan, the IRRRL is a different product. It has no appraisal and no cash out. It has its own seasoning, the later of 210 days from the first payment and the sixth payment, plus a net tangible benefit.
Repeat refinances. A cash-out that pays off a VA loan creates a new VA loan. That loan has its own first payment date, so the 210 days restart. Refinancing twice in a row can mean waiting twice.
The Funding Fee and What It Costs You
The VA funding fee on a cash-out is 2.15% of the loan amount for first use and 3.3% for subsequent use. It is financeable, so you do not pay it at the table, and it is waived for veterans receiving compensation for a service-connected disability and for the other exempt groups. Home equity does not offset it. VA’s funding fee and closing costs page explains who is exempt.
Because the fee is financed, it raises the balance. That is a mechanic, not a price quote. Your Loan Estimate shows every cost line, and you compare the full terms from each lender, not just one number.
Application Steps and Document Checklist
Here is the order that works in practice.
1. Pull your mortgage statement and confirm the loan type and first payment due date.
2. Get your Certificate of Eligibility, or have a lender pull it.
3. Compute your earliest eligible note date using the method above.
4. Talk to a loan officer about your goals and what the new loan has to do for you.
5. Submit the application. Expect to provide recent pay stubs, W-2s or other income proof, bank statements, and identification.
6. Review the Loan Estimate and the net tangible benefit disclosure.
7. Order the appraisal when the lender directs.
8. Respond to underwriting requests. Payment history proof on the old loan is typical.
9. Review the Closing Disclosure and sign.
While You Wait
If you are short of the date, the wait is useful time.
- Keep paying on time. Clean history helps.
- Check your entitlement. If you have used some before, know how much remains.
- Save your payment records. Statements and bank records make the seasoning proof easy.
- Review your credit. Fix errors before the lender pulls it.
- Decide what the cash is for. Cash used for home improvement, debt payoff or other needs should have a clear plan behind it. A refinance that funds spending you cannot explain is a weak candidate.
- Ask about overlays. Find out whether your lender requires more than VA does.
Myths and Mistakes
- “Six payments is enough.” Both tests must be met.
- “Every VA cash-out has to season.” Only when a VA loan is being paid off.
- “Extra payments speed it up.” The 210 days run on the calendar.
- “A cash-out is free money.” It is a new loan with a funding fee and costs built in.
- “I can be pushed to refinance again soon.” The CFPB and VA warn that unsolicited offers promising cash back, skipped payments or no out-of-pocket cost deserve suspicion. Pressure to refinance again right after closing is on their list of red flags.
- “The appraisal is optional.” VA requires it on a cash-out.
Key Terms Defined
Seasoning: The required age of the loan you are refinancing, measured by payments made and days since the first payment came due.
Note date: The date you sign the new loan. It must fall on or after the 210-day mark.
Net tangible benefit: A measurable gain from the new loan, such as a shorter term or no monthly mortgage insurance. VA lists eight possible ones.
Entitlement: The amount of the loan VA backs, shown on your Certificate of Eligibility.
Residual income: What is left of your monthly income after debts, housing costs and living expenses. It is the controlling VA underwriting test.
IRRRL: VA’s streamlined refinance that lowers a VA loan’s rate or converts it from adjustable to fixed, with no cash out.
Frequently Asked Questions
Can I refinance after exactly six payments?
Only if 210 days have also passed since your first payment came due, and only when the loan being paid off is a VA loan. The payment count is rarely the hurdle; the day count usually is.
Does making extra payments shorten the 210 days?
No. The 210 days run from the first payment due date, and paying early or paying extra does not change that. Extra payments reduce your balance, which may help your equity, but they do not move the date.
What if I have a conventional or FHA loan now?
The VA seasoning test does not apply to a non-VA payoff. You still need to meet the net tangible benefit test, the disclosure rules, and full underwriting. Some lenders add a waiting period of their own, so ask early.
What if I made a late payment during the first six months?
It does not automatically end your chances, but it can complicate the file. The lender reviews the history, and some set stricter standards than VA does. Tell your loan officer before you apply so the file is built around it.
How much equity can I take out?
The VA cash-out can reach 100% of the appraised value, including the financed funding fee. The appraisal sets your number, and your lender’s guidelines and your residual income set what the file can support. Lendmire’s piece Can You Get Approved for a VA Cash-Out Refinance After Six Monthly Payments and 210 Days? goes further on that question.
Next Steps
Start with the date. Find your first payment due date, add 210 days, and mark the later of that date and your sixth payment.
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 your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging FHA, VA, conventional and jumbo purchase and refinance loans through a wholesale lending network. Eligibility is determined by the lender on each file. 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
1. VA.gov: Cash-out refinance loan
2. VA Lenders Handbook, Chapter 6
3. VA Loan Guaranty Conference: Refinancing Loans
4. Federal Register: VA cash-out refinance interim final rule (38 CFR 36.4306)
6. VA.gov Funding fee and closing costs
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: How to Qualify and Apply for a VA Cash-Out Refinance Under Type 1 and Type 2 Rules · Can You Remove a Co-Borrower With a VA Cash-Out Refinance? · VA Cash-Out Refinance Requirements Within a Year of Buying
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.