Knowing how to refinance an FHA loan to VA loan is the best way for veterans to stop paying monthly mortgage insurance and keep more money in their pockets.
This guide shows you the exact steps and the 2026 rules you need to follow to make this smart money move.
Below is a simple guide to help you understand how this switch works and why it is a great choice for your family.
Why Switch from FHA to VA?
Many veterans start with an FHA loan because it is easier to get if you have a lower credit score. But FHA loans have a big cost: Mortgage Insurance Premium (MIP).
You usually have to pay this fee every month for the life of the loan. VA loans are different because they have no monthly mortgage insurance.
The Big Benefits
- Save Monthly: You can stop paying the FHA insurance. This often saves families between $100 and $300 every month.
- Lower Interest: VA loans usually have the lowest interest rates available.
- Get Cash Back: If you have extra value in your home, a VA loan lets you take out up to 100% of that value in cash. FHA only lets you take 80%.
How to Refinance an FHA Loan to VA Loan: The Rules
To move your loan to the VA program, you must meet a few basic rules. The VA calls this a “Cash-Out Refinance,” even if you do not want any extra cash.
It is just the name of the process used to switch from a non-VA loan.
1. Military Service
You must prove you served in the military. You do this by getting a Certificate of Eligibility (COE). You can get this if:
- You served 90 days during wartime.
- You served 181 days during peacetime.
- You were in the National Guard or Reserves for 6 years.
Not sure if you have your full benefit available? Let our VA specialists pull your Certificate of Eligibility (COE) and verify your status for you in minutes.
2. Time in Your Current Loan
You cannot switch loans right away. You must wait a certain amount of time. This is called “seasoning.”
- You must have made at least six monthly payments on your FHA loan.
- At least 210 days must have passed since your first payment was due.
The Costs of Refinancing in 2026
When you move from an FHA loan to a VA loan, there is a one-time fee. This is called the VA Funding Fee. This fee helps the government keep the program running for other veterans.
| Your Use of VA Loan | 2026 Funding Fee |
| First-Time Use | 2.15% |
| Used Before | 3.30% |
Good News: If you have a disability from your service (10% or higher), you do not have to pay this fee! This makes the switch very cheap.
You can check the latest fee charts on the official VA website.
Easy Steps to Refinance
Step 1: Find a VA Lender
Not all banks are the same. Look for a lender that knows how to handle the “FHA to VA” switch. They will help you pull your COE and check your credit.
Step 2: Get a Home Appraisal
The VA needs to know what your home is worth. They will send a special appraiser to check your house. They want to make sure the home is safe and in good shape.
Step 3: Close the Loan
Once the bank approves you, you sign the papers. Your new VA loan pays off your old FHA loan. Your monthly FHA insurance stops immediately.
FHA vs. VA Loans
| Feature | FHA Loan | VA Loan |
| Monthly Insurance | Yes (MIP) | No |
| Upfront Fee | 1.75% | 2.15% to 3.3% |
| Max Cash-Out | 80% of value | 100% of value |
| Typical Rate | Higher | Lower |
Need extra cash for home repairs or debt? Unlike FHA, a VA refinance lets you tap into 100% of your home’s value. Find out how much equity you can unlock today.
Conclusion
Learning how to refinance an FHA loan to VA loan is a smart move for your wallet. By making the switch, you get rid of monthly insurance fees and get a lower interest rate.
Even with the one-time funding fee, most veterans save thousands of dollars over the years. Your service earned you this special benefit.
Do not stay in a more expensive FHA loan when you have a better option available.
Read more VA Home Loan Entitlement and Limits
Frequently Asked Questions
Is there a “Streamline” option from FHA to VA?
No. The “Streamline” (IRRRL) is only for moving from one VA loan to another. To go from FHA to VA, you must do a full refinance with an appraisal.
What credit score do I need?
Most lenders want to see a score of 580 to 620. However, the VA does not set a strict score, so some lenders may be more flexible.
Can I include my closing costs in the loan?
Yes. Many veterans roll the funding fee and other costs into the new loan so they do not have to pay much cash at the closing.
Will I get my FHA insurance money back?
You will not get back the insurance you already paid. However, you will get back any money left in your “escrow” account for taxes and insurance from your old lender.
