Current VA cash-out guidelines, updated from one source.
No rate and no payment live in these cards, only VA’s settings and, for Texas, the state’s: eighty percent of value with the financed fee inside it on a homestead, a waiting period after application, a closing at a prescribed office, and a cap on the fees a lender may charge. The calculator applies the Texas cap.
Of the reasonable value, funding fee included, on a principal residence
100% of the reasonable value is the ceiling on the whole loan, fee included, which is why the fee tier chosen changes the cash available. The loan being replaced can be a VA loan or any other loan, and the cash is unrestricted once the old liens and the costs are retired.
First use; 3.3% after first use; exempt with service-connected disability compensation
2.15% on first use, 3.3% on subsequent use, usually financed into the loan, and waived for veterans with service-connected disability compensation and the other exempt groups VA lists. The fee is VA’s charge for backing the loan; it replaces the monthly insurance other programs carry.
And six payments on the loan being refinanced, whichever comes later
Seasoning is measured on the loan being replaced, not on the home: 210 days from the first payment due date and six payments made, whichever comes later. A loan younger than that waits; the appraisal and the entitlement do not shorten the clock.
A net tangible benefit test, a debt-to-income guideline, and residual income that decides
VA sets no minimum score of its own; the wholesale programs begin at 580. The 41% ratio is a guideline, secondary to residual income, and the new loan must give the veteran at least one of VA’s net tangible benefits: a lower payment, a shorter term, a fixed rate in place of an adjustable one, or another on the list.
| 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 Texas homestead: the state constitution caps a cash-out loan at eighty percent of value, fee included. |
| 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.
Not an offer, not a commitment to lend, not an approval, not a quote. What this page shows are VA program parameters, drawn from 38 CFR 36.4306, VA Circular 26-19-05, and the VA Lenders Handbook, together with wholesale lender overlays, as of the date shown; VA and the lenders change them without notice, and every file is subject to a Certificate of Eligibility, a VA appraisal, and full underwriting on residual income. The calculator’s rate is a published weekly survey average. Lendmire LLC, NMLS #2371349, is a mortgage broker licensed in sixteen states for consumer mortgages, never the lender, and has no affiliation with the Department of Veterans Affairs. Nothing here is legal or tax advice.
What a VA cash-out refinance is — and how the file is qualified.
Four cards, four decisions: what the new VA-backed loan pays and what it leaves as cash; what the entitlement allows and what the fee costs; whether the current loan is seasoned and the new one passes the benefit test; and whether another instrument would reach the same cash for less on a Texas home.
For the program overview, see Lendmire’s VA cash-out refinance program; the rules are VA’s, at VA.gov, and the Certificate of Eligibility is requested there.
One new VA loan, cash at closing
The closing has four payees: the old first lien, any second lien being retired, the parties owed closing costs, and the veteran, in that order, with the funding fee financed inside the loan rather than paid from the cash. On a Texas home the veteran’s share arrives by wire once the rescission window closes.
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 Texas 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
VA’s appraiser works from comparable sales and from VA’s minimum property requirements, so the Notice of Value is a value and a condition finding together. A Texas home with a safety or structural defect is repaired before closing or the loan is not backed; a value below the plan shrinks the loan to the cap at that value.
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 Texas 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 Texas’ equity sits — and how VA cash-out fits.
Three statewide Census measures frame a VA cash-out in Texas: how many households own, what the typical home is worth, and what households earn. The city pages carry the local versions, which are the ones a single file is written against.
Statewide figures provide general market context, not an appraisal or an income calculation. Where homes were bought years ago, the distance between today’s value and the old balance is the VA cash-out’s raw material, and that distance is a local fact.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Texas’ veterans borrow equity — market by market.
These are the Texas markets with the largest owner-household pools in the state’s footprint, each with its own city guide. The leverage, the fee tiers, the seasoning rule, and the residual-income standard hold across all of them; the values do not.
Houston
Near 391,519 households own in Houston (42% of the total), and the veterans and service members in that number carry an entitlement that reaches further than the conventional or FHA cash-out caps in this metropolitan market. Census context: median value near $277,800, median household income near $64,813, population near 2.33M.
San Antonio
With about 289,380 owner households, about 52% of households, San Antonio is a metropolitan market where a VA cash-out file is routine: the COE, the appraisal, the seasoning, the fee, and the residual income. Census context: median value near $235,700, median household income near $65,056, population near 1.48M.
Dallas
Near 226,615 households own in Dallas (42% of the total), and the veterans and service members in that number carry an entitlement that reaches further than the conventional or FHA cash-out caps in this metropolitan market. Census context: median value near $320,700, median household income near $70,518, population near 1.31M.
Austin
Near 198,180 households own in Austin (43% of the total), and the veterans and service members in that number carry an entitlement that reaches further than the conventional or FHA cash-out caps in this metropolitan market. Census context: median value near $555,300, median household income near $93,658, population near 980K.
Fort Worth
Near 195,072 households own in Fort Worth (57% of the total), and the veterans and service members in that number carry an entitlement that reaches further than the conventional or FHA cash-out caps in this metropolitan market. Census context: median value near $303,000, median household income near $79,507, population near 963K.
El Paso
El Paso is one of the larger Texas owner markets, close to 149,169 households, about 61% of households, and in a metropolitan market that size the veterans among them refinance for cash on VA terms every month: full value, no monthly insurance, the fee financed. Census context: median value near $184,500, median household income near $59,745, population near 680K.
A Texas VA cash-out is decided by VA’s program and the homestead rules together: the state’s cap with the fee inside it, the COE and the fee tier, the seasoning of the loan being replaced, the net tangible benefit, the VA appraisal, residual income after the new payment with the closing payoffs removed, and the state’s waiting period, closing location, fee cap, and once-a-year limit.
Four ways Texas veterans put equity to work.
Four reasons bring Texas veterans to a VA cash-out more than any others, and each touches a different part of the review: residual income, the appraisal, the sequence of two loans, or the comparison with a line of credit.
Capitalize a business or an investment
Equity has started many a Texas business, and the VA cash-out is one way to draw it as a lump sum at full-value leverage. Underwriting ignores the venture’s prospects and looks at the veteran’s own income, credit, and residual income; the mortgage payment is owed whatever the business does.
Pay off a second lien or a line in repayment
A home equity line that has entered repayment, or a second mortgage with a rate that adjusts, can be paid off by the new VA-backed first mortgage. The combined balances plus the costs and the fee must fit within the reasonable value; where they do, two payments become one with no monthly insurance.
Renovate or repair the home
Renovation cash arrives in one disbursement after rescission. The reasonable value is today’s, not the finished value, so the loan is sized to the equity already built; where an older Texas home has a safety or structural item, VA requires the repair before the loan is backed, and the review plans the sequence accordingly.
Consolidate higher-cost debt into one VA-backed payment
Retiring a stack of balances with one VA-backed loan changes two things at once for a Texas household: the monthly outlay falls, and the residual income VA counts rises because the retired payments are gone. The balance runs on a new full term with the fee inside it, which is the part to weigh before signing.
Estimate the cash, the fee, and the new payment on a Texas home before requesting a quote.
The arithmetic follows VA’s rules for a Texas home: cap times value gives the ceiling with the fee inside it, the tier’s fee rate yields the maximum base loan, the payoff comes off, the cash request is tested against the remainder, the fee is added back, the total is amortized over the term at the rate shown, the escrows are added, and the payment is set against income and other debts.
Texas VA cash-out estimate
A Texas example to start from. Enter your own figures and your fee tier to see your own ceiling and payment.
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 $285,000 home value near Texas’ median owner-occupied value, a $157,000 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 Texas (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. On a Texas homestead the state constitution caps a cash-out refinance at eighty percent of value, fee included, and adds a waiting period, a prescribed closing location, and a fee cap; the calculator applies the Texas cap.
Same equity, three ways to borrow it.
VA cash-out, VA streamline, line of credit: one purpose, three instruments, each with its own reach, cost, and conditions. Below is how they line up for a Texas veteran and where each tends to fit, with the conventional and FHA cash-outs as the fallback where entitlement is partial.
VA cash-out, the IRRRL, or a HELOC.
A new VA-backed first mortgage replaces the old one, VA or not, up to the full reasonable value with the funding fee financed inside the cap and no monthly mortgage insurance. It is a full refinance with a VA appraisal, the seasoning and benefit tests, and a fee unless the veteran is exempt; it delivers the largest lump sum of the three.
The streamline refinances an existing VA loan to a lower rate or from an adjustable to a fixed rate: a small fee, no appraisal required by VA, limited underwriting, and no cash out. It is the right tool for the Texas veteran whose only goal is a better payment on a VA loan already in place. See Lendmire’s VA loan program for the IRRRL.
The line of credit is a second lien that leaves the first mortgage exactly as it is: drawn as needed during the draw period, repaid over the period that follows, usually at a rate that adjusts, with no funding fee and lighter closing costs. Lendmire’s line program reaches a high combined leverage, and it is the first comparison for any Texas veteran whose current loan is worth keeping. See Lendmire’s home equity line of credit.
Choose the VA cash-out when equity is the goal and the full-value reach or the end of monthly insurance matters; choose the streamline when the current loan is VA and only the rate needs fixing; choose the line when the first mortgage should stay and the need is modest or staged. Where entitlement is partial, the conventional and FHA cash-outs are priced as well. Without entitlement, see the conventional and FHA cash-out programs.
What to prepare for a Texas 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 Texas 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 Texas 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 Texas file clean and fundable.
Before a Texas review, settle three questions: which fee tier applies or whether the veteran is exempt; whether residual income after the new payment clears VA’s table; and whether the current loan is seasoned and the new one passes a benefit test.
- Know the Texas rules: Eighty percent of value, fee included, on a Texas homestead; VA’s full-value leverage does not apply.
- Confirm the fee tier: First use, subsequent use, or exempt: the COE decides, and the fee is financed inside the cap.
- Compute the residual: Residual income after the new payment and every other obligation must meet VA’s regional table.
Texas homestead rules cap a VA cash-out below VA’s leverage
These conditions exist nowhere else in Lendmire’s footprint, and they govern leverage, timing, and cost rather than eligibility: the cap counts the fee, the waiting period is fixed, the closing location is prescribed, and the fees are limited. A Texas veteran should plan on the state’s timeline, and the calculator on this page applies the Texas cap.
The funding fee comes out of the cash unless the veteran is exempt
The fee is financed inside the full-value cap, so on a Texas home it reduces the cash rather than the leverage: a first use of entitlement pays the lower tier, any later use pays the higher one, and a veteran receiving compensation for a service-connected disability pays nothing. The COE settles the tier, and the calculator shows what each tier leaves.
Residual income decides a VA file
A Texas household with children, a larger home, or a higher loan amount needs more residual income, because the table rises with family size and loan size and differs by region. Debts paid off through the closing come out of the calculation, which is why consolidation files often clear the table even when the ratio looks high.
Full entitlement or partial entitlement changes the file
Entitlement is restored when a prior VA loan is paid off and the home sold, and it can be restored once while the veteran keeps the home if the loan is paid in full. The COE for a Texas cash-out shows the entitlement available, and the lender reads it before sizing anything; a veteran with a VA loan on another home is usually in partial entitlement.
The VA appraisal sets the reasonable value and checks the property
A VA fee appraiser sets the reasonable value from comparable sales and inspects the Texas home against VA’s minimum property requirements: safe, structurally sound, and sanitary. The Notice of Value issued on the appraisal is the ceiling the cap applies to, and a defect the appraiser reports is repaired before closing or the loan is not backed.
From a Texas scenario review to cash at closing.
The VA cash-out, stage by stage, with what each one settles.
Scenario review
The review is where the Texas veteran learns whether the file fits VA, what the fee takes from the cash, and whether another instrument would reach the same cash more cheaply. It ends with written terms on a conservative value, and nothing is ordered until the veteran agrees the plan is worth an appraisal.
COE, application, and automated finding
The Certificate of Eligibility is requested or confirmed first, because it fixes the entitlement, the fee tier, and any exemption. The application then records income, assets, debts, the property, and the occupancy, and the automated system returns a finding that lists the conditions and confirms the ratio with the closing payoffs removed.
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
At closing the veteran signs the note and the security instrument, receives the lender’s final comparison of the old loan and the new one, and settles the costs; the payoffs are scheduled. The rescission period runs next, and when it ends the lender funds: the old lenders are paid, the new mortgage is recorded, and the cash is wired. The first payment falls at the start of the second month after.
A brokerage built around equity lending.
Texas veterans use Lendmire because the cash-out, the streamline, and the line are all arranged here, because each file is shopped across several wholesale programs instead of one lender’s sheet, and because the loan officer will say when the fee is not worth paying and a line of credit serves better.
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 Texas 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 Texas 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
Written first, ordered second, paid third: that is the order on every Texas file. The veteran sees the loan, the fee, the cash after costs, the payment, and the residual income on a value with room beneath it before any fee is charged, so a plan that cannot close never costs an appraisal.
Trusted by veterans & families alike.
Texas VA cash-out refinance FAQs
The questions Texas 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?
It is a new VA-backed first mortgage that replaces the loan on the home a veteran lives in, VA or not, with a larger one up to the full reasonable value, and pays the difference in cash after the old loan, any second lien, and the closing costs are settled. VA’s guaranty stands behind the lender, the funding fee pays for it unless the veteran is exempt, and there is no monthly mortgage insurance. It is for veterans, service members, Guard and Reserve members with qualifying service, and certain surviving spouses in Texas who hold entitlement.
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 Texas figures by tier beside the line-of-credit alternative.
How much is the VA funding fee on a cash-out, and who is exempt?
Two tiers and an exemption, all in the snapshot: first use, subsequent use, and none at all for the exempt groups VA lists, led by veterans compensated for a service-connected disability. The fee is financed in nearly every file, so it reduces the cash rather than requiring money at closing.
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?
No VA minimum, a wholesale starting point in the snapshot, and residual income as the real test. The ratio guideline is secondary, and a ratio above it is approved when residual income runs well past VA’s table or other justification is documented.
How do I get my Certificate of Eligibility, and what does it show?
Online, through the lender, or by mail. Surviving spouses use a different form, Guard and Reserve members supply points statements and separation records, and active-duty service members supply a signed statement of service. The certificate then shows entitlement, prior use, and exemption.
When do I actually get the money?
After the rescission period, every time: federal law gives the owner of a principal residence a short window after signing to cancel, and because VA backs cash-outs on principal residences only, the lender funds after the window closes, paying the old loans and wiring the cash. A Texas veteran with a deadline schedules the closing with that in mind.
What is residual income, and how does it affect my file?
A Texas veteran with children, a larger loan, or a region with a higher table needs more residual income. The underwriter computes it on the new payment, and the review computes it first, so the figure is known before the appraisal is ordered.
Would a HELOC be better than a VA cash-out?
Decide on the current mortgage first. A line of credit leaves a good first mortgage alone, borrows only the new money, carries no funding fee, and reaches a high combined leverage, so for a modest or staged need it is usually the cheaper route, with a payment that can change and the line program’s own credit standard as the trade. When the first mortgage should go, the sum is large, or the full-value reach only VA offers is needed, the VA cash-out fits. Both are arranged here and priced side by side on your Texas figures.
How long does a VA cash-out refinance take?
Entitlement check, VA appraisal, any required repairs, title, conditions: those decide the pace, and a Texas veteran with the COE in hand at the review removes a step that often slows a VA file.
VA cash-out, streamline, or a line in Texas: compared on your numbers.
Three questions open a Texas VA cash-out: what the home is worth, what is owed, and what the COE shows. Lendmire answers them, places the file, and writes up the route that fits, or says plainly when the streamline or a line of credit fits better.
This guide covers Texas — for the program overview, see Lendmire’s VA cash-out refinance program.
All Texas city guides (6): Austin · Dallas · El Paso · Fort Worth · Houston · San Antonio
Related programs: Cash-Out Refinance · VA Loans · HELOC