A veteran may also use their eligibility for a VA home loan refinance of an existing VA mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home.

MAXIMUM VA REFINANCE LOAN

• the VA reasonable value plus the VA funding fee, or
• the sum of the outstanding balance of the loan to be refinanced plus allowable closing costs (including the funding fee) and discounts.

The cost of energy efficiency improvements can also be added to the VA home refinance loan.

The borrower is not allowed to receive any cash back at the closing nor pay off any consumer debt such as credit cards or installment loans on a VA home loan refinance.  Otherwise it would need to be a VA Cash Out Refinance.

On October 16, 2008 VA made changes to it guidelines that now allow a cash out VA refinance to go to a new LTV of 100%.  Please see the Cash Out Section.  Additionally, Congress raised VA’s maximum loan amount for these types of VA refinancing loans. Previously, these VA home refinancing loans were capped at $144,000. With the new legislation, such loans may be made up to $729,750 depending on where the property is located.

This type of VA home refinance loan is generally referred to as a "Rate and Term" refinance. 

Other types of va home loan refinance options are:

IRRL - VA Streamline Refinance

Cash Out Refinance - Used to consolidate bills