Type One / Type Two glossary
Key terms
Classification
These terms explain VA cash-out refinance types, each with a primary source. This is not a government website.
Last reviewed against the primary sources listed below.
- Type I cash-out
- A VA cash-out refinance where the new loan does not exceed the payoff. Source: VA Circular 26-18-30: Revisions to VA-guaranteed cash-out refinancing home loans
- Type II cash-out
- A VA cash-out refinance where the new loan exceeds the payoff. Source: VA Circular 26-18-30: Revisions to VA-guaranteed cash-out refinancing home loans
- Net tangible benefit
- A required benefit to the borrower from a VA refinance. Source: VA Circular 26-18-30: Revisions to VA-guaranteed cash-out refinancing home loans
- Home equity comparison
- A disclosure comparing equity before and after a VA cash-out refinance. Source: VA Circular 26-18-30: Revisions to VA-guaranteed cash-out refinancing home loans