VA Cash-Out Refinance

A VA cash out refinance in Florida reaches deeper into your equity than any other program, and it can convert a non-VA loan at the same time.

Key features of a VA cash out refinance in Florida

• The VA permits borrowing up to 100% of value, though most lenders cap lower
• Any loan type can be refinanced into a VA loan, not only an existing VA loan
• Cash may be used for any purpose
• No mortgage insurance at any loan-to-value
• Funding fee of 2.15% on first use and 3.3% on subsequent use, financed into the loan
• Veterans receiving VA disability compensation pay no funding fee

The 100% figure is a VA rule, not a lender offer

This distinction matters before you plan around a number. The VA will guarantee a cash-out refinance up to the full value of the home. Individual lenders set their own limits below that, and many stop at 90%.

Therefore ask each lender directly what their maximum is rather than assuming the program maximum applies. A veteran counting on 100% and finding 90% mid-process is short of funds at the worst possible moment. Even at 90%, this reaches considerably further than the 80% that conventional and FHA cash-out allow.

Weigh it against keeping the loan you have

Cash-out replaces your entire mortgage. If your existing rate is low, that is expensive.

Work an example. A veteran holding $250,000 at 3% who wants $60,000 would move the whole $310,000 to today’s rate. The extra cost applies to all of it, not only the new money. A HELOC or a home equity loan leaves the 3% first mortgage untouched and prices only the $60,000, which is frequently cheaper overall even at a higher rate on the second.

Run both before you decide. The VA option wins when your current rate is already high, or when you are converting an FHA loan and shedding its mortgage insurance in the same move.

Two things to plan for

The funding fee is real money. At 2.15% on a $310,000 loan that is about $6,665 added to the balance, unless your disability exemption applies. Establish your exemption status before closing rather than chasing a refund afterwards.

Consolidating debt also changes its nature. Card balances are unsecured; once inside the mortgage they are secured against your home. The saving is genuine, and it only holds if the spending that created the balances has stopped.

Many Florida veterans use the proceeds for hurricane hardening such as impact windows or a new roof, which often lowers the windstorm premium as well. Ask your insurer what a specific upgrade would save before you decide how much to take.

Figures above are illustrative. Source: US Department of Veterans Affairs loan guaranty regulations on cash-out refinancing, with funding fee amounts and exemptions published by the VA. Lender maximum loan-to-value limits vary and are often below the VA maximum.