VA's two cash-out refinance types and the protections each one carries
Cash-out and entitlement
Classification
A VA cash-out refinance uses entitlement for the new loan, and the old loan's entitlement is restored when it is paid off in the refinance. Refinancing a non-VA loan into VA uses entitlement you may have available. Check your COE.
Last reviewed against the primary sources listed below.
Check
- Your Certificate of Eligibility.
- Remaining entitlement.
Type questions
Does a VA cash-out use my entitlement?
Yes, for the new loan.
Is my old entitlement restored?
When the old VA loan is paid off.