REFINANCE

VA Standard Refinance: NTB & Seasoning

Screen VA cash-out refinance benefits, Type I or Type II seasoning, loan-to-value, and the extra VA-to-VA Type I tests.

VALast agency guidance update: Jul 25, 2019Last verified: Nov 9, 2026Effective date: Jul 25, 2019

Agency guidanceSee verification scopeView guideline history

Source publication: Not yet verified
Last verified: Nov 9, 2026
Effective date: Not yet verified

Verified the eight benefit paths, 100% value cap including any financed funding fee, and additional Type I and II provisions.

VACash-out refinance rule, 83 FR 64459 ↗

Material guidance update: Dec 17, 2018
Last verified: Nov 9, 2026
Effective date: Feb 15, 2019

Introduced the cash-out benefit and seasoning framework.

VACircular 26-20-16, Exhibit A, Q2 ↗

Source publication: Apr 20, 2020
Last verified: Nov 9, 2026
Effective date: Not yet verified

Explains that the later statutory first-payment-due rule governs Type I, while Type II follows the regulation’s actual payment date.

VA38 U.S.C. § 3709 ↗

Material guidance update: Jul 25, 2019
Last verified: Nov 9, 2026
Effective date: Jul 25, 2019

The 2019 amendment changed the statutory seasoning anchor to first payment due; six consecutive payments are also required.

VACircular 26-19-05, cash-out implementation ↗

Source publication: Feb 14, 2019
Last verified: Nov 9, 2026
Effective date: Not yet verified

Used for the P&I comparison, disclosure details and Type I recoupment method. The 2019 statute governs the Type I seasoning date.

01 / SCENARIO

Inputs

Start with the example or enter your own figures. You can type dollar amounts above the slider ranges.

Check any that apply

Start with the standard inputs. Select an option to see the extra fields.

The old or new loan is an ARM

I want to compare the remaining and proposed terms

The refinance eliminates monthly insurance or pays off qualifying interim financing

I have both VA residual income calculations

The VA payment history needs special review

Is the existing loan VA-guaranteed or insured?

New total loan including financed funding fee

$0$10,000,000

Existing loan payoff

$0$10,000,000

VA reasonable value (Notice of Value)

$0$10,000,000

Existing current note rate

New note rate

Existing monthly principal and interest

New monthly principal and interest

Proposed closing date

Existing first payment actually made (VA Type II)

Date the sixth qualifying monthly payment was made

Use the sixth consecutive qualifying payment for Type I. Exclude skipped payments and review any applicable forbearance treatment.

02 / WORKSHEET

Results

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MortgageRisk is independent of the agencies cited. Results are for professional review and do not constitute an underwriting decision or loan approval.

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