Marcus T., a 38-year-old Army veteran, had purchased his Fort Lauderdale home five years earlier using a VA loan. Working as an IT security specialist earning $85,000 annually, Marcus had built substantial equity (home purchased $310,000, now worth $445,000; mortgage paid down to $265,000 = $180,000 equity). He wanted to launch a cybersecurity consulting business requiring $75,000 capital for equipment, certifications, marketing, and working capital. Rather than expensive business loans at 10-14% rates, Marcus explored VA cash-out refinancing to access equity at mortgage rates.

“I had $180,000 equity but needed $75,000 liquid capital for my business,” Marcus explained. “Business loans would cost 10-14% with short 5-year terms creating $1,400+ monthly payments. A VA cash-out refinance would let me access equity at 6.5% mortgage rates with 30-year terms—dramatically more affordable at only $175 monthly payment increase.”

Facing similar capital needs? Schedule a call to explore VA cash-out options.

Why VA Cash-Out Refinancing Was Marcus’s Optimal Strategy

Marcus evaluated multiple capital sources:

Business loan alternative:

• Amount: $75,000
• Rate: 11% typical
• Term: 5 years
• Monthly payment: $1,635
• Total interest: $23,100

VA cash-out refinance:

• Payoff existing: $265,000
• Cash-out: $75,000
• New loan: $340,000
• Rate: 6.5% (competitive VA rate)
• Payment increase: $175 monthly
• Conservative 76% LTV ($340K / $445K)

“The VA cash-out provided $75,000 at 6.5% versus 11% business loans,” Marcus said. “My payment increased only $175 monthly versus $1,635 for a business loan. That’s dramatically more affordable capital—my business income would easily exceed the modest payment increase.”

Documentation for Marcus’s VA Cash-Out

Documentation provided:

VA eligibility:

• Certificate of Eligibility (COE)
• Proof of military service

Income and business plan:

• Two years W-2s ($85,000 IT salary)
• Business plan for consulting firm
• Industry certifications and experience

Current mortgage:

• Existing VA loan statement ($265,000)
• Five years perfect payment history

Property:

• Homeowners insurance
• Appraisal at $445,000

The approval process:

1. Consultation (Day 1)
2. Application (Day 3)
3. Income verification (Days 4-9)
4. Credit review (Days 10-11)
5. Payment history (Day 12)
6. Business plan review (Days 13-16)
7. Appraisal (Days 17-24)
8. Underwriting (Days 25-38)
9. Approval (Day 39)
10. Closing (Day 45)

Approved based on solid income, perfect payment history, conservative 76% LTV, sound business plan, and strong equity cushion.

Ready to access equity? Submit a refinance inquiry.

Final Results

Final details:

• Previous VA loan: $265,000 (paid off)
• Cash-out: $75,000 (for business)
• New VA loan: $340,000
• Property value: $445,000
• Remaining equity: $105,000
• LTV: 76%
• Payment increase: $175 monthly
• Competitive VA rates – Try this VA Loan Cash-Out Refinance Calculator

Business results (12 months):

• Equipment/certifications: $35,000
• Marketing: $15,000
• Working capital: $25,000
• Year 1 revenue: $128,000
• Net income: $52,000
• Payment increase: $2,100 annually
• Business income: $52,000 annually
• Net benefit: $49,900 annually

“The VA cash-out transformed my financial trajectory,” Marcus said. “I launched my business generating $52,000 additional annual income—far exceeding the $2,100 payment increase. I’m building business equity while maintaining favorable VA financing. That’s intelligent capital deployment.”

When ready for more strategies, Marcus can explore VA refinancing or VA IRRRL for rate optimization.

Ready to fund your goals? Get approved or schedule a call.

Key Takeaways

• VA cash-out accesses equity at mortgage rates—6.5% vs 10-14% business loans
• Conservative 100% LTV maximum (some lenders 90%)—Marcus kept $105K equity
• 3.3% funding fee on cash-out refinances—can be financed
• Must have VA eligibility—COE required
• Perfect payment history strengthens application—five years flawless payments
• Business capital at low cost beats expensive alternatives

Questions? Schedule a call.

Alternative Options

If VA cash-out isn’t perfect:

• Conventional Cash-Out
• HELOC
• Home Equity Loan

Explore all programs.

Resources

Learn more:

• VA Loan Guide
• Cash-Out Calculator

Similar stories:

• VA purchase
• VA IRRRL

External resources:

• VA Cash-Out Refinance

Need local expertise and connections? Get introduced to trusted partners including USDA-approved lenders and rural area mortgage specialists experienced with refinancing optimization.