VA Cash-Out to 100% LTV: The Refi No Other Loan Can Match
Conventional caps cash-out at 80%. FHA caps at 80%. VA policy allows up to 100% of appraised value, though some lenders apply their own overlay at a lower limit — ask which limit applies to your file.
The VA cash-out refinance is the only mortgage in the United States that permits a borrower to pull equity all the way to 100% of the appraised value of their home. Conventional cash-out is capped at 80%. FHA cash-out is capped at 80%. HELOCs typically top out at 85% combined LTV. VA stands alone.
The 30-second version
VA policy allows a cash-out refinance up to 100% LTV with no monthly PMI. Some lenders apply an internal overlay that cuts the ceiling to 90%, because loans above 90% can price differently in the secondary market. If your quote assumes a lower ceiling, ask whether an overlay is being applied.
What the overlay actually costs you
- $500k home, $280k current VA loan, disability-exempt funding fee, $6,500 closing costs
- At 90% LTV overlay: new loan $450k → $163,500 cash to borrower
- At 100% LTV (real VA max): new loan $500k → $213,500 cash to borrower
- Same file, same appraisal, same veteran — $50,000 more cash
Ask any loan officer, in writing: 'Do you write VA cash-out to 100% LTV, or do you overlay?' If they dodge, they overlay. If they answer 'yes, to 100%,' ask for pricing at 100%, 90%, and 80% side-by-side. A lender doing it right will give you three clean quotes.
When 100% is the right call — and when it isn't
The winning cases are debt consolidation (credit card interest at 24% collapsed into a first-lien at market rates), large home renovation, and funding a specific investment where deployed capital outperforms the mortgage rate. The losing cases are short holding periods, uncertain income, and softening local markets — pulling 100% today can leave you underwater in 18 months.
What to do next
Run your own numbers on our 100% LTV cash-out calculator, then read the full breakdown in our education library. When you show up to your next conversation knowing exactly what the VA program actually allows, the conversation changes.
About the author
Content reviewed by licensed mortgage professionals at Bolt Home Loans LLC, NMLS #2784913.