VA's two cash-out refinance types and the protections each one carries
Questions for your lender
Classification
Ask the lender to state whether your loan is Type I or Type II, which protections apply, and how financing the fee or costs changes the answer. Ask for the loan comparison disclosure early, not just at closing, so you can review the benefit and equity figures before you commit.
Last reviewed against the primary sources listed below.
Ask
- Is this Type I or Type II?
- Which seasoning and recoupment rules apply?
- What would change the type?
- When will I receive the comparison disclosure?
Type questions
Who decides whether my loan is Type I or Type II?
The lender classifies it under VA's definitions.