NewDay100 is NewDay USA's VA cash-out refinance product, built to reach the full loan-to-value ceiling the VA actually allows rather than the lower cap most lenders apply on their own. The VA permits a cash-out refinance up to 100% of a home's appraised value, well above the 80% ceiling on conventional cash-out loans, but many lenders quietly limit their own VA cash-out loans to 90% or 95% as a risk decision, not because the VA requires it.
NewDay100 is built around using the VA's full allowance rather than a self-imposed cap below it.
What "100%" Means
Accessing up to 100% of a home's value doesn't mean receiving a check for the home's full appraised value. It means the new loan itself can be sized up to 100% of that value, and the cash a Veteran actually receives is whatever's left after paying off the existing mortgage balance and covering closing costs. A home with a large amount of equity built up will unlock far more cash at 100% LTV than a home that's nearly maxed out on its current mortgage.
Who's Eligible
Eligibility follows standard VA service requirements:
- Generally at least 90 continuous days of active duty during wartime
- 181 days during peacetime
- Or six years of qualifying National Guard or Reserve service
- Must occupy the home as a primary residence
A Veteran doesn't need to already have a VA loan to use NewDay100. A conventional, FHA, or USDA mortgage can be refinanced into a VA cash-out loan, provided the underlying service and property requirements are met.
How the Process Works
Because a cash-out refinance is fully underwritten, the process includes a new VA appraisal to establish the home's current value on a Notice of Value, along with a full review of income, credit, and existing debt. Cash-out refinances also have their own Net Tangible Benefit test, separate from the one that applies to a rate-reduction refinance, along with a required disclosure showing how much home equity is being removed as part of the transaction. None of that paperwork is optional the way it often is on a VA Interest Rate Reduction Refinance Loan (IRRRL), so cash-out refinances may take longer to close.
What It Costs
Cash-out refinances carry a VA funding fee of 2.15% for first-time use and 3.3% for subsequent use, and Veterans with a service-connected disability rating are exempt from the fee entirely. A new appraisal is also required, which typically runs $700 to $1,500 depending on the state and county. Standard closing costs for title work and any required inspections apply on top of those figures.
What to Consider Before Maximizing Your LTV
Borrowing up to the full 100% of a home's value leaves little to no equity cushion behind. If home values in the area soften afterward, that can leave a Veteran owing more than the home is worth, at least on paper, until values recover or the balance is paid down. It also means a larger loan balance and a larger monthly payment than a lower cash-out amount would carry. Maximizing the loan-to-value ratio makes sense for some financial goals and not for others, and it's worth thinking through the full amount actually needed rather than defaulting to the maximum available.
FAQs
Does NewDay100 mean I get 100% of my home's value in cash?
No. It means the new loan can be sized up to 100% of the home's appraised value. The actual cash received is that new loan amount minus the payoff of the existing mortgage and minus closing costs, not the full appraised value itself.
Do I need to already have a VA loan to use NewDay100?
No. A conventional, FHA, or USDA mortgage can be refinanced directly into a VA cash-out loan through NewDay100, provided the standard VA service and occupancy requirements are met.
What happens if my home appraises for less than expected?
The maximum loan amount is based on the appraised value on the Notice of Value, not on an estimate from a listing site or tax assessment. A lower appraisal means a lower maximum loan amount and less cash available, since the 100% ceiling is calculated against whatever the appraisal actually confirms.
Can I use a VA cash-out refinance for any purpose?
Yes. The VA doesn't restrict how the cash is used. Common uses include debt consolidation, home improvements, education costs, or building a financial cushion, though rolling unsecured debt into a mortgage is worth weighing carefully against the tradeoffs involved.
Is a 100% loan-to-value cash-out refinance available to every Veteran?
Eligibility depends on meeting the standard VA service and occupancy requirements, along with individual factors like credit history, income, and existing debt that affect how much a lender is willing to approve.
