Yes, you can. There are 2 basic types of VA loan refinance programs:
- Interest rate reduction / Streamline refinance: If you have an existing VA-backed home loan and you want to reduce your monthly mortgage payments, this type of refinance lets you replace your current loan with a new one under different terms.
- Cash-out refinance: A VA cash-out refinance loan is designed to allow veterans with an existing VA or conventional loan to use their home equity to fund home improvements or other major purchases. The amount of cash available to the borrower is determined by evaluating the current appraised value of the property. Most VA lenders will allow a cash-out loan amount of up to 90 percent of the appraised value.