Compare the Complete Result Before Replacing Your Mortgage.
A VA-backed cash-out refinance may let an eligible borrower replace an existing mortgage, VA or not, and access equity. Start with the reason: cash for a specific project, consolidating debt or changing the loan you have. Then compare the proposed mortgage with the loan and debts you have today.
Program facts from the U.S. Department of Veterans Affairs, plus what Texana reviews. Specific terms for your file come from the review, not from this page.
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Replace Any Existing Mortgage
The new VA-backed loan pays off your current mortgage, whether it is conventional, FHA, USDA or VA. An existing VA loan is not required, unlike an IRRRL. It has to pay off an existing mortgage or other recorded lien; a home with no lien is not eligible. If the loan being paid off is a VA loan, VA requires it to be at least 210 days past its first payment, with at least six monthly payments made.
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Access Equity, Subject to Review
Cash may be available when the approved loan exceeds the payoff and costs. The approved amount depends on the appraisal, program rules and the lender's review of your file.
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Certificate of Eligibility
Your COE confirms your VA loan entitlement. It is part of the process, not the entire approval. We can help you request it.
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No Monthly Mortgage Insurance
VA-backed loans do not carry monthly private mortgage insurance. You pay a one-time VA funding fee instead, unless you are exempt.
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Reviewed Down to 500, Up to 60% DTI
The VA sets no minimum score. Texana reviews VA cash-out borrowers with scores down to 500 and debt-to-income ratios up to 60% with compensating factors and qualifying residual income. A review threshold, not an approval.
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Your Primary Residence
VA-backed loans are for the home you live in. Occupancy is certified as part of the process. A rental or second home needs a different program.
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The Property State Still Matters
Wherever your home is, give us the actual property location first. State rules and investor availability require review.
Before the Conversation
What Shapes a VA Cash-Out Review
Two things drive the review: your VA entitlement, and the numbers behind the loan you have today. Bring both and the first conversation is useful immediately.
VA Entitlement
Certificate of Eligibility
Shows your VA loan entitlement
We can help request it through the VA's lender system
You can also request it yourself through VA.gov
Who May Be Eligible
Veterans and active-duty service members meeting VA service requirements
National Guard and Reserve members meeting VA service requirements
Certain surviving spouses
The COE decides.
Service requirements depend on when and how you served. Rather than guessing from a summary, let the certificate answer the question. Read the COE guide →
Your Current Loan and Goal
The Numbers
Property state and whether you live in the home
Current loan type (conventional, FHA, USDA or VA) and approximate payoff
Your cash goal and what the cash is for
If Consolidating Debt
Each balance, payment and rate you plan to pay off
Payoff statements move the review faster than estimates
How long you expect to keep the home
What the Review Looks At
A full appraisal is required for a cash-out refinance
Credit scores reviewed down to 500; payment history matters
Debt-to-income up to 60% with compensating factors and VA residual income
Current program limits for the state and channel
The Arithmetic
Equity, Borrowing and Proceeds Are Three Different Numbers
Home value minus mortgage debt estimates equity. The amount a lender approves depends on the complete file and applicable limits. Cash at closing is what remains after the new loan pays existing liens and the costs charged against the proceeds. Most disappointment in a cash-out refinance comes from treating the first number as the third.
Estimated equity: value minus what you owe
Approved loan: appraisal, program rules and your file
Cash at closing: approved loan minus payoffs and costs
Consider a homeowner reviewing a proposed gross loan, a payoff and closing charges deducted from proceeds:
Assumed proposed loan: $300,000 Payoff of current mortgage: − $250,000 Closing charges and prepaids: − the amount on your Loan Estimate Before closing charges and other deductions: $50,000
The $300,000 is an assumed proposal used to show the arithmetic, not a rate quote, borrowing limit or approval. Already have a VA loan and only want a lower payment with no cash out? A VA IRRRL → is a different review. Compare the two →
If You Are Consolidating Debt
Compare Both Numbers, Not Just the Monthly One
Compare today's mortgage plus the debts being paid off with the new full housing payment and whatever debt remains. Include taxes, insurance and other required charges consistently. Then compare term length, total interest, closing costs and how long you expect to keep the home.
A smaller monthly payment is not automatically a lower lifetime cost
Paying unsecured debt with a mortgage secures that debt against your home
Plan how paid-off balances will stay paid off
Debts you choose to pay off are usually paid directly from the proceeds at closing
Bring payoff statements; estimates slow the review
Read the debt-consolidation guide before you decide
Consolidating usually lowers what you pay each month. It can still cost more over time, because a balance you would have cleared in a few years is spread across a much longer term. That trade can be the right one; you should just see both numbers first.
The calculator below shows the monthly change on the numbers you enter. Your written comparison shows the lifetime cost.
Not a veteran, or want to keep your current mortgage untouched? A HELOC → or second mortgage → leaves your first loan in place.
VA Funding Fee
Understanding the VA Funding Fee
A one-time fee paid to the VA, set by the VA's published schedule. On a cash-out refinance it depends on whether you have used your VA benefit before. It can often be financed into the loan, and some borrowers are exempt.
Refinance Type
First Use of Benefit
After First Use
VA Cash-Out Refinance
2.15%
3.30%
VA IRRRL (no cash out)
0.50%
0.50%
Who Is Exempt?
The VA publishes the exemption categories. Your lender verifies exempt status with VA before closing; bring your award letter if you have one.
✓ Veterans receiving VA compensation for a service-connected disability
Percentages shown are from the VA's published funding-fee schedule and are confirmed against the current schedule at review. The fee is charged on the loan amount and, when financed, adds its own line to the cash-at-closing arithmetic.
Program Comparison
VA vs. Conventional vs. FHA Cash-Out
How the three programs differ in structure. Borrowing limits are not shown because they depend on current program rules, the lender channel and the property state.
VA Cash-Out
Conventional Cash-Out
FHA Cash-Out
Who can use it
Eligible veterans, service members, certain spouses
Anyone who qualifies
Anyone who qualifies
Occupancy
Primary residence
Primary, second home or investment, by program
Primary residence
Monthly mortgage insurance
None
Depends on program and equity
Required
Upfront fee
VA funding fee, unless exempt
No government upfront fee; cash-out pricing adjustments can apply
Structure only. Specific terms for your file come from the written comparison.
Payment Comparison
Compare the Monthly Change on Your Numbers
Enter your home value, your payoff, the cash you want and the debts you would pay off. Every value is yours to change; the sample values only show the arithmetic. The result is a monthly comparison, not a lifetime-cost comparison and not an approval.
Enter the rate from your written quote.
The approved loan amount, not your equity, sets what is possible. VA limits the loan, including the funding fee, to 100% of the VA appraised value.
Arithmetic on the numbers you enter. Not a loan estimate, rate quote, borrowing limit or approval. A monthly saving can still cost more over the life of the loan; ask to see both. Subject to credit approval. This is not a commitment to lend.
The Process
What the Process Looks Like
The appraisal is often the longest step. Everything else moves around it, and payoff statements are the thing you can prepare in advance.
1
Share Your State, Loan and Goal
Property state, current loan type, approximate payoff and your cash goal. A soft credit inquiry at this stage does not affect your score, and we help you obtain your Certificate of Eligibility.
2
List the Debts and Gather Payoffs
Tell us exactly which debts you want paid off and bring payoff statements. Those payoffs must be exact at closing, so getting them early can shorten the timeline.
3
Appraisal, Underwriting and the Written Comparison
A full VA appraisal is required and sets the value the loan is built on. Underwriting reviews credit, income, residual income and the property. You receive a written comparison showing the complete payment, the lifetime cost and the cash you would actually receive.
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Closing, Rescission and Payoff
For a refinance subject to rescission, the normal cancellation deadline is midnight of the third business day after the last required event: entering the credit agreement, receiving the required material disclosures and receiving the cancellation notice. Under the normal rule, funds are not disbursed to you until the rescission period has ended and the lender is reasonably satisfied you have not rescinded. Ask your lender to explain the deadline in your notice. Read how the VA cash-out cancellation period is counted. Debts you chose to pay off are usually paid directly, and any remaining cash comes to you.
Closing Documents
Does Signing Start My VA Cash-Out Cancellation Period?
Not necessarily. For a VA cash-out refinance subject to the right of rescission, signing alone does not establish when the cancellation period starts. Required disclosures and the cancellation notice matter too.
The normal deadline is midnight of the third business day after the last required event: entering the credit agreement, receiving the required material disclosures and receiving the rescission notice. CFPB’s Regulation Z explains the timing rule. Before making plans around closing, ask your lender whether rescission applies to your transaction and to explain the deadline in your notice.
Keep the signed credit agreement, required disclosures and cancellation notice together. Compare their signing and receipt dates. The first business day after the last of these events counts as day one.
Yes. Saturdays count; Sundays and legal public holidays do not.
A phone call alone is insufficient; cancellation requires written notice. Follow the cancellation notice’s delivery instructions and keep evidence of timely delivery or mailing.
Do not calculate your deadline from the signing date alone. Seek legal help promptly. CFPB advises consulting a lawyer right away if required disclosures or notices are missing or contain certain important errors.
Texana Bank Mortgage | (888) 272-8264 | NMLS #407536 | Equal Housing Lender. Subject to credit approval. This is not a commitment to lend. This material is not from VA, HUD or FHA and has not been approved by any government agency.
Frequently Asked Questions
VA Cash-Out Refinance FAQs
The questions veterans actually ask about equity, consolidating debt, the funding fee and what the review involves.
A VA-backed cash-out refinance replaces your existing mortgage with a new VA-guaranteed loan and may let an eligible borrower access home equity. It can also be used to refinance a non-VA mortgage into a VA-backed loan, subject to the program's rules and the lender's review. A Certificate of Eligibility is part of the process; it is not the whole approval.
No. Home value minus mortgage debt estimates equity. The amount a lender approves depends on the complete file and applicable program limits. Cash at closing is what remains after the new loan pays existing liens and the costs charged against the proceeds. Ask for a written comparison that shows all three.
The VA cash-out program can be used to refinance a non-VA mortgage into a VA-backed loan when the borrower and property qualify. This is different from a VA IRRRL, which is only for an existing VA loan and does not provide cash out.
An IRRRL (Interest Rate Reduction Refinance Loan) is a streamlined refinance of an existing VA loan with no cash out. A cash-out refinance requires a full appraisal and full underwriting, works with any existing loan type, and may provide cash. Do not use the IRRRL label for a cash-out request; they are reviewed differently.
No. A VA cash-out refinance has to pay off an existing mortgage or other recorded lien. VA does not guarantee a refinance of a home with no lien. If the loan being paid off is a VA loan, it must be at least 210 days past its first payment with at least six monthly payments made.
It can lower the monthly total while costing more over time, because a balance you might have cleared in a few years is spread across a longer mortgage term. Compare today's mortgage plus the debts being paid off with the new full housing payment and remaining debts, including taxes and insurance, and compare total interest and closing costs. Paying unsecured debt with a mortgage also secures that debt against your home.
VA-backed loans do not carry monthly private mortgage insurance. Instead you pay a one-time VA funding fee unless you are exempt, and it can often be financed into the loan. The funding fee is set by the VA's published schedule.
The VA publishes the exemption categories, which include veterans receiving compensation for a service-connected disability and certain surviving spouses. Your lender verifies exempt status with VA before closing; bring your award letter if you have one. Read our funding-fee exemption guide for the questions to bring.
Yes. A VA cash-out refinance requires a full appraisal, and the appraised value, together with program rules and the lender's review, determines what can be borrowed. Your own estimate of value is a starting point, not the number the loan is built on.
The VA does not publish a minimum credit score; lenders apply their own standards. Texana Bank Mortgage reviews VA cash-out borrowers with credit scores down to 500 and debt-to-income ratios up to 60% with compensating factors and residual income that meets VA guidelines. Those are review thresholds, not an approval: the complete file, the appraisal, the property state and current program terms decide. Share your situation and we will tell you what applies.
Yes. Give us the actual property location first. State rules and investor availability require review. A national website does not establish availability for every property and borrower.
VA-backed home loans are for a home you live in as your primary residence, and occupancy is certified as part of the process. If the property is a rental or second home, tell us; a different program may apply.
The appraisal is often the longest step, and gathering payoff statements for the debts you plan to pay off is the single most useful thing you can do early. For a refinance subject to rescission, the normal cancellation deadline is midnight of the third business day after the last required event: entering the credit agreement, receiving the required material disclosures and receiving the cancellation notice. Under the normal rule, funds are not disbursed to you until the rescission period has ended and the lender is reasonably satisfied you have not rescinded. Ask your lender to explain the deadline in your notice. Read how the VA cash-out cancellation period is counted.
Texana Bank Mortgage uses a soft credit inquiry for the initial review, which does not affect your credit score. A hard inquiry only occurs later if you move forward with a full application.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
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★★★★★
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Mark Sherrard
★★★★★
Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
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★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
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Zane Atkins
★★★★★
Parker McMahan has helped us with 3 mortgages and a refi in part few years. Always great service-always honest advice. Texana will be my “go to” for mortgage advice and activity from here on. They are also great in the area of VA home loans.
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★★★★★
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
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Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
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Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
Ask for the Written Comparison
Share your state, current loan type, approximate payoff and cash goal. Ask for a written comparison that includes costs and the amount you would actually receive. No obligation, and no impact on your credit score at this stage.
