Virginia homeowners can tap equity through a conventional, FHA, or VA cash-out refinance. The right one depends on your credit profile, your loan-to-value ratio (LTV), and whether you or a spouse served in the military. Veterans can often borrow more against the home than other borrowers, but the new rate on your entire balance usually decides whether any option makes sense.
Duane Buziak is a broker with access to hundreds of wholesale lenders, so one file can be priced against many programs instead of a single rate sheet. He starts with the NoTouch Credit Pull, a soft credit pull mortgage pre-approval. It estimates what you qualify for without a hard inquiry, the type of credit check a standard application triggers and one that can nudge your score down. That gives you a no hard inquiry mortgage pre approval to compare against other quotes before you commit. Virginia is the lead example here, but the same process applies in each of Duane’s licensed states: VA, FL, TN, GA, DC, NC, SC, and MD.
How a cash-out refinance replaces your mortgage and pays you the difference
A cash-out refinance replaces your existing mortgage with a larger one and pays you the difference in cash at closing. The new loan carries a new rate and a new term on the whole balance, not just the cash you pulled out.
Equity is your home’s value minus what you owe. If an appraisal says your home is worth $500,000 and your payoff is $250,000, you have $250,000 in equity. LTV is the loan balance divided by value, so that same home sits at 50% LTV today. Combined LTV (CLTV) adds every loan secured by the home, including a HELOC, before dividing by value. The appraisal sets the value that every one of these ratios uses, so a lower appraisal shrinks the cash available.
A rate-and-term refinance changes the rate or term without taking cash. A cash-out refinance is the same transaction with a larger new balance.
The typical sequence runs like this:
- Application and rate comparison
- Appraisal
- Underwriting and document review
- Closing
- Funds released after the rescission period
Federal law gives you a three-business-day right of rescission on a refinance of your primary residence, and it applies to Virginia homeowners. Funds are generally not disbursed until it expires. The CFPB explains how the rule works on its Ask CFPB pages, and you should confirm the current wording and any exceptions for your loan.
The most common mistake is confusing a cash-out refinance with a second mortgage or HELOC. A second lien sits behind your first mortgage and leaves its rate and term untouched. A cash-out refinance pays off the first mortgage and replaces it, so the old rate is gone.
Conventional, FHA, and VA: the cash-out programs open to Virginia homeowners
Virginia homeowners can generally use conventional, FHA, or VA cash-out refinances. VA is the only one of the three that commonly reaches 100% of the home’s value. The figures below are as of 2026, so verify them against the source before relying on them.
- Conventional cash-out: typically capped around 80% LTV on a primary residence, with higher credit-score expectations than FHA. Fannie Mae’s Selling Guide holds the current eligibility matrix.
- FHA cash-out: allows up to 80% LTV with more flexible credit standards. FHA loans carry an upfront mortgage insurance premium and an annual premium, and the rates for both change, so check HUD.gov for current figures.
- VA cash-out: eligible veterans and service members can often borrow up to 100% of value, though some wholesale lenders set lower overlays. A VA funding fee usually applies, but veterans receiving VA disability compensation and certain others are exempt. VA.gov lists the current fee tiers and exemptions.
Other options exist for specific situations. Self-employed borrowers whose tax returns understate their income may look at non-QM or bank-statement programs, for example. Availability, pricing, and LTV limits vary by borrower and by lender.
Loan size and Virginia’s high-cost counties
Loan size matters for pricing. For 2026, FHFA set the conforming loan limit at $806,500 for most of the country and $1,249,125 as the ceiling in high-cost areas, per FHFA’s conforming loan limit announcement. Several Northern Virginia counties fall in high-cost territory, but limits are set county by county. Look up your county on the FHFA site before assuming a number.
A cash-out loan above your county’s limit is a jumbo loan. Jumbo loans price and underwrite differently, and many carry stricter cash-out LTV caps.
What a Virginia cash-out refinance costs: a worked example
A cash-out refinance can raise your monthly payment and your total interest, so run the numbers before you borrow. The figures below are an illustration with assumed rates, not a quote or a market rate. For current averages, see Freddie Mac’s Primary Mortgage Market Survey.
The setup: a home valued at $500,000. The existing loan was a $300,000 30-year fixed at 3.25%, taken out about seven and a half years ago. It now has a $250,000 balance and a principal-and-interest payment of about $1,306. The owner wants $60,000 in cash.
- New balance: $250,000 + $60,000 = $310,000. LTV is $310,000 ÷ $500,000 = 62%.
- New payment: at an illustrative 6.5% for 30 years, the factor is about $6.32 per $1,000 borrowed. $310,000 × 0.0063207 = about $1,959 a month.
- Increase: $1,959 − $1,306 = about $653 more each month.
Closing costs are the second piece. Assume an illustrative 2.5%, or $7,750 on $310,000. You can pay that out of pocket, or you can roll it into the loan. Rolling it in makes the balance $317,750 (63.6% LTV) and the payment about $2,008. Some borrowers choose a slightly higher rate in exchange for lender credits, which creates no-out-of-pocket closing options, but the higher rate costs more over time.
The hidden cost: the rate you give up
Of that $653 increase, about $275 comes from moving the original $250,000 from 3.25% to 6.5% ($1,580 versus $1,306). Only about $379 pays for the new $60,000. In effect, you pay roughly $7,845 a year to access $60,000.
Compare that with a HELOC. At an illustrative 8.5% interest-only, $60,000 costs about $425 a month and your 3.25% first mortgage stays in place. Your total would be $1,306 + $425 = $1,731, about $228 a month less than the refinance. The HELOC rate is variable and the payment can change, so it is not automatically the better path. But when your existing rate is far below today’s, the refinance carries a steep hidden price.
How a mortgage broker compares cash-out refinance offers
A broker like Duane Buziak shops hundreds of wholesale lenders on a single file, instead of quoting one company’s rate sheet. Because Duane is a broker and not a direct lender, he does not set pricing himself. He compares what each wholesale option would charge you.
Dare to Compare is the invitation to bring any written quote and have it matched against wholesale options. It produces a side-by-side comparison, not a promise of a lower rate. Sometimes the quote you already hold is competitive, and a comparison will show that.
The NoTouch Credit Pull is a soft-pull pre-approval that estimates your qualification without a hard inquiry. A standard application triggers a hard pull, which is recorded on your credit report. As a soft pull mortgage broker, Duane can run a mortgage pre approval without hard pull, so a no credit hit mortgage application stage is possible before you decide to go further. The CFPB notes that multiple mortgage inquiries within a short window are typically treated as a single inquiry for scoring, but a soft pull avoids the question entirely. Verify the current window on CFPB’s homebuying resources.
When you compare offers, line up these items:
- Interest rate and discount points
- Lender credits
- APR, which folds in many fees
- Total closing costs and cash to close on the Loan Estimate
The CFPB’s guide to the Loan Estimate walks through each page.
Is LowerMortgageRates the same as Lower.com? No. LowerMortgageRates.com is operated by Duane Buziak Mortgage Maestro / Coast2Coast Mortgage LLC and is not affiliated with Lower.com.
Cash-out refinance vs. HELOC vs. home equity loan
Choose a cash-out refinance if your current rate is higher than today’s rate or you need a large lump sum. Choose a HELOC or home equity loan if your first mortgage rate is lower than current rates, since those products leave it in place.
| Feature | Cash-out refinance | HELOC | Home equity loan |
|---|---|---|---|
| How it works | New larger mortgage pays off the old one; you receive the difference in cash | Revolving credit line secured by the home; draw as needed | One-time lump sum secured by the home, repaid in installments |
| Rate type | Usually fixed, sometimes adjustable | Usually variable | Usually fixed |
| Closing costs | Full refinance costs on the entire loan | Often lower; varies by product | Often lower than a refinance; varies by product |
| Effect on first mortgage | Replaced; rate and term reset | Untouched; adds a second lien | Untouched; adds a second lien |
| Best fit | Existing rate is above today’s, or a large lump sum is needed | Low first-mortgage rate and ongoing or uncertain expenses | Low first-mortgage rate and a known, one-time expense |
Who you work with also shapes your options. The structural differences below are factual, and they say nothing about which company offers lower pricing on a given day.
| Factor | Duane Buziak (broker) | Rocket Mortgage | Movement Mortgage |
|---|---|---|---|
| Business model | Broker; submits one file to hundreds of wholesale lenders | Direct lender; originates loans under its own company | Direct lender; originates loans under its own company |
| Loan products | Programs from many wholesale lenders | That company’s own program menu | That company’s own program menu |
| Soft-pull pre-approval | NoTouch Credit Pull | Ask how credit is pulled before you apply | Ask how credit is pulled before you apply |
| Licensed states for Duane | VA, FL, TN, GA, DC, NC, SC, MD | Check the company’s current licensing | Check the company’s current licensing |
One misconception is worth correcting: a cash-out refinance does not always mean a lower rate. When your existing rate is already low, the refinance usually raises it, as the example above showed.
What Virginia homeowners need to qualify and apply
Lenders generally look at credit score, LTV, debt-to-income (DTI) ratio, income documentation, and occupancy. Thresholds vary by program and by lender, so verify them before you apply.
A typical document checklist includes:
- Recent pay stubs, or tax returns if you are self-employed
- Bank statements
- Proof of homeowners insurance
- Your current mortgage statement
Seasoning rules add a timing constraint. Lenders commonly require a waiting period after you buy the home or complete a previous refinance before you can take cash out. Fannie Mae, FHA, and VA each set their own rules, so check the current Selling Guide, HUD, and VA.gov requirements, or ask Duane.
The process usually follows these steps:
- Start with the NoTouch Credit Pull. This soft credit pull mortgage review is a no credit hit mortgage application stage, so you can see your likely options without a hard inquiry.
- Compare programs and offers across conventional, FHA, and VA, including any quote you already hold.
- Lock your rate when the numbers work for your budget.
- Move to a full application when you are ready. That is when a standard credit pull occurs.
Duane Buziak is licensed in VA, FL, TN, GA, DC, NC, SC, and MD, and does not lend outside those states. Homeowners in any of them can use the same no hard inquiry mortgage pre approval process described here.
Match the cash-out option to your existing rate, LTV, and eligibility
The right Virginia cash-out option depends on your existing rate, your LTV, and your eligibility. A veteran with a high current rate may do well with a VA cash-out, while a homeowner holding a 3% mortgage may do better with a HELOC. Start with the NoTouch Credit Pull to see your options without a hard inquiry.
Don’t let uncertainty about mortgage rates cost you thousands. Find your personalized options with a mortgage professional who can compare rates across hundreds of wholesale lenders, starting with a soft pull that involves no hard inquiry. Schedule your free consultation today and take the first step toward the right mortgage solution for your financial goals. Lower Mortgage Rates by Duane Buziak serves homeowners in VA, FL, TN, GA, DC, NC, SC, and MD only. Call 804-212-8663.