The Veterans’ Benefits Improvement Act of 2008 allows you to free up cash with a cash-out refinance, a VA home loan refinance program in which you can cash-out on the equity you have built up in your home. As an example, if you still owe $70,000 on your original loan, you can refinance for a $90,000 loan, which gives you a cash-out of $20,000.

An appraisal is required, and you must qualify for the loan. If you are refinancing for the first time, VA charges a 2.3% funding fee for this program (2.3% of the total loan), which can be rolled into the loan amount. If you refinance more than once, the funding fee is 3.3%.

There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for VA refinancing. Existing loans can be refinanced whether they are in a current or delinquent status, but refinancing loans are subject to the same income and credit requirements as regular home loans. As long as you have title to the property you can refinance an assumed loan. Check with your lender as there are some additional regulations concerning assumed loans.