Cash-out refinancing remains a popular strategy for homeowners looking to leverage their home’s equity in 2025. This process involves replacing your existing mortgage with a larger one, pocketing the difference in cash for purposes like consolidating debt, financing home improvements, or business investments. The timeline from application to funding a cash out refinance can vary significantly based on loan type, lender efficiency, market conditions, and individual circumstances. On average, conventional cash-out refinances take 30-45 days, but specialized programs like government-backed or alternative loans have their own paces. Factors influencing speed include appraisal turnaround (7-14 days), underwriting (1-3 weeks), documentation verification, and closing coordination. The RefiGuide published this article to educate homeowners on how long the cash out refinance programs are taking to fund whether its, Fannie Mae, FHA, VA, USDA, DSCR, hard money and non QM loans.
In a stable 2025 market with interest rates hovering around 6-7%, delays might stem from high application volumes or economic uncertainties. This article breaks down average closing times for specific cash-out refinance types—FHA, VA, USDA, Non-QM, DSCR, and hard money—while highlighting why variances occur. We’ll also explore three real-world-inspired case studies to illustrate these timelines in action.
The Average Cash-Out Refinance Process and Timeline
Understanding the standard steps provides context for type-specific variations. The journey begins with pre-approval, where you submit financial docs like pay stubs, tax returns, and credit reports. Lenders then order an appraisal to confirm your home’s value, crucial for determining equity and loan-to-value (LTV) ratios—typically capped at 80% for cash-outs. Underwriting follows, scrutinizing your debt-to-income (DTI) ratio (ideally under 43%), credit score (620+ minimum), and employment stability. Once approved, you receive a Closing Disclosure, triggering a mandatory three-day waiting period before signing. Funding occurs 1-3 days post-closing, with cash disbursed via wire or check.
Delays can arise from incomplete paperwork, appraisal revisions, or title issues. In 2025, digital tools like e-signatures and automated underwriting have shaved days off, but government loans often involve extra oversight, extending times. Conversely, private or alternative lenders prioritize speed for competitive edge. Now, let’s dive into averages for each queried type, based on current industry data.
Conventional Cash-Out Refinance: Average Timeline
Conventional cash-out refinances, backed by Fannie Mae or Freddie Mac, are the most common type for borrowers with strong credit (typically 620+) and stable finances. They allow up to 80% LTV and don’t require mortgage insurance if equity exceeds 20%. From application to funding, conventional cash-outs average 30-45 days. This timeline benefits from standardized guidelines and efficient processes at major banks and online lenders. Appraisals usually take 7-10 days, with underwriting wrapping in 1-2 weeks for clean files. In 2025, some digital platforms close in 20-30 days using automated valuation models (AVMs) instead of full appraisals, but expect extensions to 50 days during busy periods or if manual reviews are needed for complex income sources.
FHA Cash-Out Refinance: Average Timeline
The Federal Housing Administration (FHA) cash-out refinance is ideal for borrowers with lower credit scores (down to 580) or limited equity, allowing up to 80% LTV. It requires mortgage insurance premiums (MIP) but offers flexible guidelines. From application to funding, FHA cash-outs typically close in 30-45 days. This aligns with general refinance averages but can stretch to 50 days if appraisals lag—FHA mandates detailed inspections, and appraisers must adhere to strict HUD standards. Borrowers need at least six months of on-time payments on their current mortgage, adding a built-in wait for recent homeowners. In 2025, with streamlined FHA processes, some lenders close in under 30 days for straightforward cases, but expect extras like home inspections to add time.
VA Cash-Out Refinance: Average Timeline
Veterans Affairs (VA) cash-out refinances cater to military members, offering up to 100% LTV in some cases—no private mortgage insurance required. However, they involve a 210-day seasoning period or six on-time payments post-original closing. Average closing time is 40-50 days from application to funding, slightly longer than FHA due to VA-specific appraisals (often 10-14 days) and funding fee processing. In 2025, VA refinances can hit 60 days during peak seasons, as regional loan centers review files for compliance. Speed-ups occur with lenders using automated systems, potentially closing in 30 days for IRRRL (streamline) variants, but full cash-outs demand more scrutiny.
USDA Cash-Out Refinance: Average Timeline
The U.S. Department of Agriculture (USDA) program focuses on rural properties but does not offer true cash-out refinances. Instead, it provides rate-and-term or streamlined refinances, where borrowers can’t extract equity beyond reimbursing closing costs. If cash-out is needed, homeowners must refinance into a conventional or other loan type. For USDA refinances, timelines average 30-45 days, similar to purchases, with underwriting involving income verification for low-to-moderate earners. Appraisals in rural areas can delay by 7-10 days due to fewer comparables. In 2025, streamlined assists close faster (25-40 days), but full refinances require 180-day seasoning. Borrowers seeking cash should explore alternatives to avoid USDA restrictions.
Non-QM Cash-Out Refinance: Average Timeline
Non-Qualified Mortgage (Non-QM) cash-outs suit self-employed or non-traditional borrowers, bypassing Fannie Mae/Freddie Mac rules with flexible underwriting like bank statement income verification. They allow higher DTIs (up to 50%) and credit down to 500. Closing averages 30-45 days, akin to conventional, but can be quicker (20-30 days) with specialized lenders. No strict seasoning (as little as one day post-event like bankruptcy), but custom docs extend review. In 2025, Non-QM’s rise in popularity means busier pipelines, potentially adding weeks if asset depletion or foreign income is involved.
DSCR Cash-Out Refinance: Average Timeline
Debt Service Coverage Ratio (DSCR) loans, often under Non-QM, target investors using rental income to qualify—no personal DTI needed if DSCR ≥1.0. Cash-outs up to 75% LTV for investment properties close in 15-30 days on average, faster than traditional due to asset-based focus. Appraisals emphasize income potential, speeding things up, but lease reviews can delay. In 2025, fintech lenders close in 10-21 days, appealing to real estate investors needing quick equity access.
Hard Money Cash-Out Refinance: Average Timeline
Hard money loans from private investors emphasize property value over borrower credit, with rates 8-15% and short terms (6-24 months). Cash-outs fund quickly—7-15 days average—due to minimal paperwork and in-house underwriting. No seasoning required; some close in 24-72 hours for urgent needs. However, high fees (2-5 points) and appraisals (3-5 days) apply. In 2025, they’re ideal for flips or bridges, but expect 2-3 weeks if title issues arise.
Case Study 1: FHA Cash-Out for Debt Consolidation
Lisa, a 38-year-old nurse in Ohio with a 650 credit score, owned a $300,000 home with $150,000 equity. Seeking $50,000 to pay off credit cards, she applied for an FHA cash-out in March 2025. Appraisal took 10 days, underwriting 2 weeks amid MIP calculations. Delays from tax doc revisions added 5 days, but she closed in 42 days total—funding wired 2 days later. This average pace suited her, saving on interest despite the wait.
Case Study 2: VA Cash-Out for Home Improvements
Mike, a 45-year-old veteran in Texas, had a $400,000 home with $200,000 equity and 720 credit. In June 2025, he pursued a VA cash-out for $80,000 renovations. The 210-day seasoning was met, but VA appraisal delayed 12 days due to regional backlog. Underwriting cleared in 18 days, closing at 48 days—funding immediate. Mike appreciated no MIP but noted extra VA steps extended beyond 40 days.
Case Study 3: Hard Money Cash-Out for Investment Flip
Sarah, a 50-year-old investor in California, needed $100,000 from her $500,000 rental’s equity for a quick flip. With spotty credit, she chose hard money in August 2025. Minimal docs and in-house appraisal wrapped in 5 days; no seasoning needed. She closed in 10 days, funding same-day. High rates were a trade-off, but speed enabled her deal.
Takeaways on How Long Cash Out Refinancing Takes
Cash-out refinance timelines in 2025 range from 7-15 days for hard money to 40-50 days for VA, with FHA and Non-QM at 30-45, DSCR at 15-30, and USDA unavailable for cash-outs (refinances 30-45 days). Shop lenders, prepare docs early, and consider your needs—speed vs. cost. Consult professionals to navigate options effectively.
About RefiGuide
Bryan Dornan is a financial journalist and currently serves as Chief Editor of RefiGuide.org. Bryan has founded several mortgage and marketing companies and has worked as a loan officer and mortgage broker in the industry for over 25 years and has a wealth of experience in providing mortgage clients with the highest level of service in the industry. Bryan's continual focus is to promote affordable home-ownership to consumers like you across the United States. He also writes for RealtyTimes, Patch, Buzzfeed, Medium and other national publications. Find him on Twitter, Muckrack, and Linkedin
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