The Quick Read: Usually, yes. On a VA cash-out refinance, allowable fees and charges can be paid from the loan proceeds, and VA names the intangible tax as an allowable recording-related charge. The catch is the 100% ceiling: every dollar of tax and fees comes out of the cash the veteran receives, and anything above the ceiling is paid in cash. Miami-Dade appears here only as an illustration, because the same logic applies in any state where VA allows a state-specific charge.
Lendmire’s VA cash-out refinance program page lays out the loan itself. This article covers one narrow question inside it: what happens to Florida’s mortgage taxes when the borrower wants to refinance a primary residence with a VA cash-out.
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: 7.24% as of October 29, 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.
Is the Intangible Tax Really an Allowable Charge?
Yes. A VA program notice 26-24-19 lists “recording fees and recording taxes (including intangible tax) incident to recordation” among the itemized fees a veteran may pay. The charge must be reasonable and customary.
There is also a Florida-specific entry. VA’s State Fees & Charges Deviations List shows an entry adding “intangible tax” as an allowable fee for Georgia and Florida. It also says taxes assessed by state or local authorities are permissible at the amount required by law.
Underneath both documents sits the regulation. 38 CFR 36.4313 bars any charge to the borrower that the schedule doesn’t expressly permit. The schedule includes recording fees and recording taxes or other charges incident to recordation. So the intangible tax passes the test. A random lender add-on does not.
Can It Be Rolled In, or Paid From Proceeds?
On a cash-out, allowable fees and charges may be paid from the cash proceeds. The VA Lenders Handbook, Chapter 8 says only refinancing loans may include other allowable fees and charges in the loan amount.
Here is the practical read on a file. The borrower isn’t writing a separate check for the tax. It is absorbed into the loan and netted against the cash the borrower walks away with. Less cash at the table, but also less cash needed to get there.
Not every VA loan works this way. The table below shows the difference.
| Loan type | Closing costs financed? | Other liens? |
|---|---|---|
| Purchase | Funding fee only | N/A |
| The VA streamline refinance | Allowable costs and fee | No |
| Cash-out | Allowable fees from proceeds | Yes, any lien |
The mix-up between these loan types is the most common source of bad answers. A page that says “only the funding fee can be rolled into a VA loan” is describing a purchase. It doesn’t describe a cash-out.
What Does Miami-Dade Add?
Nothing separate on the mortgage side. Miami-Dade has no extra mortgage intangible tax. The state levies the nonrecurring intangible tax on obligations secured by a mortgage on Florida real property, and it is separate from documentary stamp tax, per Starfield & Smith’s Florida tax refresher.
Two things get blurred in search results. The first is the county. Miami-Dade’s well-known surtax sits on the deed side of a transaction, and a refinance has no seller and no new deed. The second is the word “fee.” The intangible tax is a tax, not a lender fee. It is a government-mandated charge at the amount required by law, and a lender can’t mark it up.
The Florida Department of Revenue says documentary stamp tax applies to mortgages and liens and is based on the full indebtedness secured, with no cap on mortgages. Exact rates are on that agency’s pages. Here they are described only as a small percentage of the loan amount.
What Is the Ceiling on Rolling It In?
The cash-out maximum is 100% of the reasonable value on the Notice of Value (NOV), including the financed funding fee. The VA Lenders Handbook, Chapter 6 puts the limit in those terms. The wholesale programs Lendmire places VA files with reach the same 100% of appraised value, including the financed fee.
That ceiling decides how much room is left for taxes and fees. Think of it as a bucket:
- The payoff of the existing loan fills part of it.
- The funding fee fills more, unless the veteran is exempt.
- Allowable taxes and fees take the next slice.
- Whatever remains is the cash the borrower receives.
If the appraisal comes in tight, the bucket is small. Anything over the ceiling must be paid in cash at the table. Some lenders also set their own cap below 100% as an overlay, so the program ceiling and a given lender’s cap are not always the same number.
How the Funding Fee Fits
The funding fee is separate from the intangible tax, and it counts against the same ceiling. On the VA cash-out, it is 2.15% for first use and 3.3% for subsequent use. It is financeable. It is waived for veterans receiving compensation for a service-connected disability and for the other exempt groups, so check VA’s list of exempt groups before assuming it applies.
An exempt veteran has more room under the ceiling, since that slice of the bucket is empty. A non-exempt veteran with a subsequent-use cash-out has less.
Do the Fees Have to Be Documented?
Yes. Circular 26-24-19 says lenders must support itemized charges with an invoice or equivalent document, such as a recorded deed showing recording cost. Government-mandated fees that the state or county does not collect at closing need no invoice but cannot exceed the listed amount, as Consumer Finance Monitor’s summary describes.
On a file, this is where small gaps appear. A line labeled “intangible fees” with no breakdown draws questions. A line labeled as the state intangible tax at the amount required by law does not.
The VA regulation also sets a flat origination charge. Under 38 CFR Part 36, a single charge capped at 1 percent of the loan can stand in for other origination costs not expressly listed. Taxes and recording charges are separate itemized fees. They don’t fall inside that 1%.
What Changes for the Borrower?
Four things move when allowable charges are paid from proceeds.
- Cash to close. The borrower needs less cash at the table.
- Cash in hand. The cash received shrinks by the same amount.
- Loan balance. A larger balance means a larger payment and more interest over the life of the loan.
- Appraisal sensitivity. A low reasonable value limits how much can be absorbed.
Run the logic without dollar figures. Take a home where the existing payoff sits at a modest share of the appraised value. There is wide room under the 100% ceiling, so the tax and fees fit easily and the borrower still receives meaningful cash. Take another home where the payoff already sits near the ceiling. The same tax and fees may push the file over the line, and the borrower must bring cash to cover the gap. Same loan program, different outcome.
Edge Cases That Trip Files
Type I and Type II. The Handbook splits cash-outs by loan amount relative to payoff. Type I is a loan, including the funding fee, that does not exceed the payoff. Type II exceeds the payoff. A VA-to-VA Type I refinance carries a fee recoupment requirement: if the monthly principal-and-interest payment doesn’t drop, the lender may not charge the veteran loan fees or closing costs beyond taxes, escrow amounts and the funding fee. The recoupment test is an IRRRL-style rule and doesn’t apply to a standard VA cash-out that produces cash to the borrower.
Seasoning and net tangible benefit. The VA cash-out carries seasoning of the later of 210 days from the first payment and the 6th payment, plus a net tangible benefit. Both are measured on the loan being refinanced, so a recent refinance can’t always be refinanced again right away.
Florida refinance tax treatment. Tax on refinances can depend on how the transaction is structured. A Florida appellate decision, summarized by Moffa Tax Law, involved renewals and refinancings where tax applied only to new principal. That is a lender and title-agent issue. The title agent computes the tax. A veteran shouldn’t expect a credit for tax paid on an earlier loan.
Other states. The intangible tax is a state-specific allowable charge. The deviations list is state by state, so the rule for the subject property’s state controls. A state not on the list for that item is not automatically covered.
Common Misconceptions
1. “Only the funding fee can be rolled in.” True for purchases. Not true for cash-outs.
2. “VA caps cash-out at 90%.” VA’s own table shows 100% of reasonable value. A 90% limit is usually a lender overlay.
3. “The 1% cap covers taxes.” No. Taxes are itemized and sit outside the flat charge.
4. “Miami-Dade charges its own mortgage intangible tax.” No. It is a state tax.
5. “The intangible tax is a lender fee.” No. It is a tax, and the lender can’t mark it up.
How to Check Your Own Paperwork
Compare the Closing Disclosure against the Loan Estimate. The CFPB explains that the lender must deliver the Closing Disclosure at least three business days before closing, so there is time to review it. Check these lines:
- The recording and tax lines carry clear labels, not a lump “fees” entry.
- The funding fee matches your exempt or non-exempt status.
- Any credit offsetting a non-allowable fee is itemized in the Paid By Others column.
- The cash to you matches your own subtraction of payoff, fee and taxes from the ceiling.
Fix errors before closing, as the CFPB’s closing guidance recommends.
One note from the file side. Across the wholesale programs placed through Lendmire, a cash-out that looks fine on the first estimate can shift once the VA appraisal lands. The reasonable value on the NOV, not the homeowner’s estimate, sets the room for fees. Treat early cash-out figures as provisional until the NOV arrives.
Key Terms Defined
Intangible tax. A nonrecurring Florida state tax on obligations secured by a mortgage on Florida real property.
Documentary stamp tax. A separate Florida tax on mortgages and liens, based on the full indebtedness secured.
Notice of Value (NOV). VA’s statement of reasonable value, which sets the ceiling on the loan.
Funding fee. A VA charge on the loan that can be financed and is waived for exempt veterans.
Allowable charge. A fee VA expressly permits the veteran to pay.
Recoupment. A test requiring that a Type I VA-to-VA refinance lower the monthly payment, or else limits what fees the veteran can be charged.
Frequently Asked Questions
Can I pay Florida’s intangible tax from my VA cash-out proceeds?
Yes, in most cases. VA lists the intangible tax among allowable recording-related charges, and on a cash-out, allowable fees may be paid from proceeds. The amount comes out of the cash you receive, and the total loan must stay within the ceiling.
Does Miami-Dade add its own mortgage tax on a refinance?
No separate mortgage intangible tax exists at the county level. The intangible tax is a state tax. The county surtax most people hear about is a deed-side charge, and a refinance generally has no new deed.
Is a VA cash-out capped at 90%?
Not by VA. The program reaches 100% of the appraised value, including the financed funding fee. Some lenders choose a lower cap, so ask about overlays up front. Subject to lender guidelines and full file review.
Do I owe the funding fee on top of the tax?
Unless you are exempt, yes. The cash-out funding fee is 2.15% for first use and 3.3% after, and it can be financed. Veterans receiving compensation for a service-connected disability, and the other exempt groups, owe none.
What if the appraisal comes in low?
The room for taxes and fees shrinks. Anything above the 100% ceiling must be paid in cash, or the cash-out amount drops. This is why early figures are provisional until the VA appraisal arrives.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
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. Reach the team at 828-256-2183.
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.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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
4. VA Lenders Handbook, Chapter 8: Borrower Fees and Charges
5. Starfield & Smith’s Florida tax refresher
6. Florida Department of Revenue
7. VA Lenders Handbook, Chapter 6: Refinancing Loans
8. Consumer Finance Monitor’s summary
10. Moffa Tax Law
11. CFPB
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: Best VA Cash-Out Refinance Program With the Lowest Possible Fees · Can a Veteran Buy Out an Ex With a VA Cash-Out on a Jumbo Home? · How to Prepare a VA Cash-Out Refinance File for Approval
Guides: VA Cash-Out Refinance in Miami, FL · VA Cash-Out Refinance in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.