Florida Cash-Out Refinance • NMLS #303217

Florida Cash-Out Refinance

Tap your home’s equity — up to 100% LTV with VA — for renovations, debt payoff, or your next investment.

See My OptionsCall Keith: 352-619-4959
Keith Meredith, Division PresidentWritten by Keith Meredith·NMLS 303217·Division President, Black Rock Mortgage

Florida home values have risen substantially since 2020. If you’ve owned for more than a few years, you’re sitting on equity — and a cash-out refinance turns that equity into tax-free cash to use however you want. Renovations, debt consolidation, the next investment property, or just a meaningful cash cushion. We close cash-out refinances in 30-45 days.

Up to 100% LTV (VA)

VA cash-out refinances allow up to 100% LTV — the highest of any program. FHA caps at 80%; conventional at 75-80%.

Tax-Free

Cash-out proceeds are loan proceeds, not income. They’re tax-free — no 1099 to the IRS. Use the cash without tax consequences.

Lower Rate Bonus

If you’ve been on a 7%+ rate, cash-out refis often give you both a lower rate AND access to equity simultaneously. Two wins in one transaction.

When a Florida Cash-Out Refinance Makes Sense

Five scenarios where cash-out is almost always the smart move:

  • Consolidating high-interest debt. Florida buyers carrying $30K-$80K in credit card or personal loan debt at 18-25% APR can roll it into a mortgage at single-digit rates — saving hundreds or thousands per month. The math is overwhelming for most files.
  • Major home renovations. Cash-out is typically cheaper than a HELOC or personal renovation loan, especially if you’re also lowering your first-mortgage rate in the process. Florida coastal homes adding hurricane impact glass or kitchen remodels are common.
  • Buying the next investment property. Real estate investors use cash-out from one property to fund the down payment on the next. Cheaper than hard money, more flexible than a HELOC.
  • Replenishing reserves after a major life event. Medical, divorce, business setback — cash-out can rebuild liquidity at a low rate without forcing a sale.
  • Funding college or major purchases. Cheaper than student loans for parents, often cheaper than auto loans, and tax-free at withdrawal.

Cash-Out Refi vs HELOC vs Home Equity Loan

FeatureCash-Out RefiHELOCHome Equity Loan
How it worksReplaces your first mortgageSecond lien, line of creditSecond lien, lump sum
Rate typeFixed (most programs)VariableFixed
Typical rate (vs first mtg)Same as first mortgage1-3% above first mortgage1-2% above first mortgage
Max LTV80% conv / 80% FHA / 100% VA85% combined85% combined
Closing costs2-4% of new loan~$500-$2K typical2-4% of new loan
Monthly paymentOne mortgage paymentVariable; interest-only optionsOne mortgage payment + first mortgage
Best forLower-rate environment, big cash needs, simplifying to one paymentFlexible access over timeFixed-amount need, keep low first mortgage rate

If your current first mortgage rate is higher, cash-out refi often wins. If you’re sitting on a 3% mortgage from 2021, a HELOC or home equity loan is usually better — don’t give up that low first-mortgage rate. We’ll look at all three options before recommending.

Florida Cash-Out Refinance Features and FAQ’s

  • Cash out up to 80% LTV on conventional and FHA, up to 100% on VA
  • Use proceeds for renovations, debt consolidation, education, or investment
  • Replace your existing first mortgage with a single new fixed-rate loan
  • Fixed-rate certainty vs. variable-rate HELOC — predictable payment for the life of the loan
  • 620+ FICO conventional, 580+ FHA, 580+ VA — broad credit acceptance
  • Roll closing costs into the loan — $0 out of pocket in most scenarios
  • Interest may be tax-deductible if proceeds are used for home improvements (consult tax advisor)
  • Cash-out vs. HELOC analysis — we model both side-by-side to find the cheaper path
  • 30-45 day close timeline — standard refinance underwriting
  • 24-hour pre-approval on weekdays so you can lock your rate fast

Depends on the program. FHA: 80% of current appraised value, minus your existing mortgage balance. Conventional: 75-80%. VA: up to 100% (veterans only). DSCR (investment): 80%. Bank statement: 80%. Example: $400K home, $200K existing mortgage. FHA cash-out: $400K × 80% = $320K new loan, minus $200K existing = $120K cash to you (minus closing costs).

No. The cash you receive is loan proceeds, not income. There’s no 1099 to the IRS. The downside: the interest you pay on the new mortgage may have limited tax deductibility depending on how you use the funds. Talk to your CPA on the deduction side, but the cash itself is tax-free.

Cash-out refi rates are typically 0.25-0.5% higher than rate-and-term refi rates at the same LTV — that’s the small premium for taking out cash. But if your current rate is significantly above today’s market rates, you can do cash-out and still come out ahead overall. We’ll model both.

Yes — VA is the only program that allows 100% LTV cash-out. It’s an extremely powerful benefit for veterans. The funding fee applies (2.15% first use, 3.30% subsequent), but disability-rated veterans are exempt. Run the numbers carefully — pulling 100% means no equity buffer if values drop.

Yes. Conventional cash-out on investment properties allows up to 75% LTV with strong credit. DSCR programs allow up to 80% LTV with no personal income docs. Bank statement programs work for self-employed investors. Each has tradeoffs; we’ll match you to the right one. DSCR details →

30-45 days from application is typical — about the same as a purchase. The longest steps are the appraisal (especially in markets where comparable sales are scarce) and the lender’s title work. Coastal Florida properties sometimes take longer due to flood and wind insurance verification. Plan for 45 days, hope for 30.

Short term: minor dip from the credit pull and the new account opening — typically 5-15 points, recovered within 90 days. Long term: usually neutral or positive, especially if you used the cash to pay off higher-interest debt (which lowers your credit utilization ratio).

Typically 2-4% of the new loan amount — covering appraisal, title, recording, lender origination, and Florida-specific items like documentary stamps and intangible tax. On a $300K cash-out refi, expect $6K-$12K in closing costs. These can be rolled into the new loan (financed) so you don’t pay out of pocket.

Keith Meredith, Florida mortgage broker and Division President at Black Rock Mortgage

About the Author

Keith Meredith

Division President, Black Rock Mortgage
NMLS 303217 · 16+ years originating · $100M+ in mortgages closed

Keith Meredith is a 16 year mortgage industry expert who has originated over $100,000,000 in mortgages. Headquartered in Ocala, Florida, Keith runs Black Rock Mortgage as a division of Coast 2 Coast Mortgage, a lender licensed in 40 states. Keith specializes in manufactured home financing, self-employed mortgages, VA construction loans, and helping first-time buyers navigate FHA, USDA, and conventional programs. He creates written and video content to help borrowers understand their financing options.

Call or text directly: 352-619-4959 · Follow Keith on X, Facebook, Instagram, and LinkedIn

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