A homeowner in Glen Allen may have a solid payment history and a VA-backed mortgage but little equity because prices have leveled, they bought recently, or they financed a high percentage of the purchase price. That leads to a practical question: can veterans refinance at 100 LTV? In many cases, yes. A VA cash-out refinance can reach 100% of the appraised value, subject to underwriting, occupancy, credit, residual-income review, and the individual program rules available through the broker.
That does not mean every 100% loan-to-value refinance is a smart move. The new payment, remaining term, funding fee, closing costs, and reason for refinancing all matter. A lower rate can look attractive while a new 30-year term adds interest over time. The right answer comes from the full math, not a headline rate.
By Duane Buziak, NMLS #1110647
Table of Contents
- What 100% LTV means on a VA refinance
- When a VA cash-out refinance fits
- A worked Richmond payment example
- Approval factors beyond equity
- Broker, bank, and online-platform comparison
- Local price context and competitor questions
- Richmond VA refinance FAQ
- Next steps before applying
Can Veterans Refinance at 100 LTV? Yes, With VA Cash-Out
Loan-to-value, or LTV, compares the new base loan amount with the home’s appraised value. If a home appraises at $400,000 and the new base loan is $400,000, the refinance is at 100% LTV. There is no equity cushion in that calculation.
For eligible veterans, service members, and qualifying surviving spouses, a VA cash-out refinance is often the route used for a 100% LTV transaction. Despite the name, it can be used to replace an existing VA loan or a non-VA mortgage even when the homeowner takes no cash back. In contrast, an Interest Rate Reduction Refinance Loan, commonly called an IRRRL, follows a different rule set and is generally built for refinancing an existing VA mortgage rather than extracting equity.
A VA cash-out refinance requires an appraisal. The appraised value is central because it sets the 100% LTV ceiling. The property also generally must be the borrower’s primary residence. A rental in Short Pump, a second home near Lake Anna, or an investment property in Williamsburg is not a standard VA cash-out fit simply because the borrower has VA eligibility.
The VA program itself does not impose a universal minimum FICO score, but wholesale program partners set their own credit and underwriting floors. Richmond Mortgages can review options for VA borrowers down to a 500 FICO score in qualifying scenarios. That is not an approval promise. Recent late payments, debt-to-income ratio, residual income, appraisal condition, and the reason for the refinance can change the result.
When 100% LTV Is Worth Considering
The strongest reason is usually payment improvement with a reasonable break-even period. Other valid reasons include replacing a higher-rate non-VA mortgage, consolidating certain higher-cost debt when the new total housing payment remains manageable, or completing needed home improvements. A 100% LTV refinance is not a shortcut around affordability review.
There are trade-offs. At full LTV, the appraisal has no room for error. If the property comes in below expectations, the transaction may need a smaller loan amount, funds brought to closing, or a different plan. VA funding fees can apply unless the borrower is exempt based on qualifying disability status. Ask about our no-out-of-pocket closing options, but review whether any costs are financed and how that affects the total obligation.
For a homeowner in Chesterfield or Midlothian, a lower payment may matter more than preserving a shorter remaining term. For another borrower, especially one planning to sell in a few years, refinancing into a fresh 30-year schedule may not justify the expense. The decision should be tied to the household’s timeline.
A Fully Worked 100% LTV Refinance Example
Assume a Henrico County homeowner has a property that appraises at exactly $400,000 and owes $400,000. The refinance is therefore 100% LTV. Assume the existing mortgage has a $400,000 balance, a 7.25% fixed rate, and 30 years remaining. Its principal-and-interest payment is $2,728.27 per month.
Now assume the homeowner completes a new 30-year VA cash-out refinance with a $400,000 base loan at an illustrative fixed rate of 6.25%. The new principal-and-interest payment is $2,462.87 per month.
The monthly principal-and-interest difference is $2,728.27 minus $2,462.87, or $265.40 per month. Over five years, $265.40 multiplied by 60 payments equals $15,924 in payment reduction. That figure excludes taxes, insurance, funding fees, financed costs, prepaid items, and the fact that a new 30-year term resets the repayment schedule. It is a worked illustration, not a quote or rate offer.
The local value question remains real. The Henrico County median sale price was reported at $390,000 in May 2024 in Central Virginia Regional MLS market reporting. A current appraisal can differ materially from a county median because condition, square footage, school assignment, lot, and immediate comparable sales drive the result.
Approval Factors Beyond the Appraisal
A 100% LTV VA refinance still needs a file that makes sense on paper. Underwriting evaluates the mortgage payment, taxes, insurance, association dues where applicable, revolving debt, installment debt, income stability, and residual income. Residual income is one reason VA financing can look beyond a single debt-to-income ratio, but it is not a reason to ignore monthly obligations.
A soft credit pull mortgage review can help a borrower understand where they stand before choosing a direction. Richmond Mortgages offers the NoTouch Credit Pull process so homeowners can start with a no hard inquiry mortgage pre approval conversation. For borrowers weighing a refinance against waiting six months, a mortgage pre approval without hard pull process can identify credit issues without immediately creating a new inquiry.
The NoTouch Credit Pull is especially useful when a veteran needs to review utilization, disputed accounts, or a recent credit event. A soft pull mortgage broker can evaluate the available information and outline likely documentation before the borrower authorizes a full application. That makes a no credit hit mortgage application review more practical for households that are still comparing options.
How a Broker Compares With Other Channels
The difference is less about a logo and more about how many program choices can be evaluated for a specific VA file. A mortgage broker shops available wholesale options; a bank generally offers its own shelf; an online platform may use a narrower automated process. Terms, eligibility, and pricing change daily, so comparison should happen on the same day with the same scenario.
| Comparison point | Mortgage broker | Bank | Online platform |
|---|---|---|---|
| Rate access | Can compare wholesale program options | Typically limited to its own menu | Varies by platform and partner setup |
| FICO floor | Can match qualifying files to available overlays | Set by that institution’s overlay | Often driven by automated rules |
| Investor count | Richmond Mortgages has access to 500+ wholesale investors | Single institutional channel | Varies by platform |
| Pre-approval type | Can begin with NoTouch Credit Pull review | Process varies | Process varies |
Local Comparison Questions That Matter
Borrowers sometimes compare Richmond Mortgages with Rocket Mortgage, Movement Mortgage, The Cowart Team, Sparrow Home Loans, 804 Mortgage, or C&F Mortgage. Ask each company to price the identical loan amount, occupancy, credit profile, lock period, and points structure. Ask whether the quote is based on a 100% LTV VA cash-out refinance and whether the funding fee is included in the disclosed loan amount.
Colonial 1st Mortgage still appears in some Richmond and Glen Allen directory listings. The Better Business Bureau lists the business as out of business, its former domain does not resolve to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Homeowners who see Colonial 1st Mortgage in search results should verify current licensing status through the NMLS Consumer Access database before making contact.
Richmond VA Refinance FAQ
Can I refinance at 100% LTV in Richmond City?
Potentially, yes. The property needs to appraise at or above the qualifying base loan amount, and the borrower must meet VA cash-out underwriting requirements.
Does a 100% LTV VA refinance require cash back?
No. A VA cash-out refinance can replace an existing mortgage without cash back. The program name describes its capability, not a requirement.
Can a Glen Allen homeowner use this for a rental property?
Generally no. VA cash-out refinances are intended for a primary residence, not a rental or second home.
What price tier works best in Midlothian?
There is no preferred price tier. A $300,000 home and a $700,000 home follow the same core LTV math, but appraisal support and payment qualification differ.
How long does a VA cash-out refinance take in Chesterfield?
A practical expectation is often 30 to 45 days, depending on appraisal timing, title work, documentation, and underwriting conditions.
Do veterans need perfect credit for 100% LTV?
No. VA does not establish one universal FICO minimum, but program overlays and the overall credit profile determine what is available.
Can I roll costs into the new loan?
Some allowable costs and the funding fee may be financeable in qualifying circumstances. Review the final loan amount and payment carefully before proceeding.
Should I choose a VA cash-out refinance or an IRRRL?
An IRRRL may be simpler for an existing VA loan when no equity access is needed. A VA cash-out refinance is the program typically considered for 100% LTV or for replacing a non-VA mortgage.
Before ordering an appraisal, gather your current mortgage statement, homeowners insurance declaration page, income documents, and a clear explanation of what the refinance needs to accomplish. A good refinance decision should leave you with a payment and timeline you can live with, not just a number that looks better for one month.
Not a commitment to lend. Rates subject to change. Equal Housing Lender.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.