Yes. A Las Vegas veteran can refinance an FHA loan into a VA loan in 2026 through VA's cash-out refinance, which is a refinance that can replace any home loan with a VA loan. That ends the FHA mortgage insurance charge of 0.50% or 0.55% of the loan a year on most newer loans. You do not need to take cash out. In its place, VA charges a funding fee, which is a one-time charge of 2.15% on first use. Many disabled veterans do not pay it.
Why it can be worth comparing. Under HUD's current table, an FHA loan insured since March 20, 2023 that started above 90% of the home's value carries monthly mortgage insurance for the life of the loan. A VA loan has no monthly mortgage insurance.
The switch is a full refinance. You need VA eligibility, a new appraisal and a new approval. VA also makes the lender show you, in writing and twice, what you gain and what it costs.
This guide covers each VA and HUD rule with its source. Every rule was read in its source on September 30, 2026. Sources are listed at the bottom.
Key takeaways
- FHA to VA uses VA's cash-out program. The IRRRL (VA's streamline refinance, the short-form path) only works on a loan that is already VA.
- Ending FHA mortgage insurance is one way to meet VA's benefit test. The lender must still show the benefit on a written comparison, where the funding fee and other costs also count.
- The waiting period and 36-month cost test do not apply. VA's rule applies them only when the loan being paid off is a VA loan.
- The funding fee is the trade. For a cash-out refinance it is 2.15% for first use and 3.3% after, per VA.gov. At a 0.55% yearly FHA premium, 2.15% equals about 47 months of premiums. At an older loan's 0.85%, it is about 30 months.
- You give up any FHA refund credit. HUD refunds part of the upfront FHA premium only on a refinance into another FHA loan.
- Can you refinance FHA to VA: yes, through VA's cash-out refinance program.
- Monthly mortgage insurance after the switch: none on the VA loan.
- VA funding fee, cash-out refinance: 2.15% first use, 3.3% after first use, $0 if exempt.
- VA waiting period when the old loan is FHA: none under VA's rule.
- VA's limit on the new loan: 100% of the VA appraised value; lenders can set lower limits.
- FHA upfront premium refund: not available on a refinance to VA.
Can you refinance an FHA loan into a VA loan?
Yes. A veteran can refinance an FHA loan into a VA loan, and VA.gov names it as one reason to use its cash-out program.
You do not have to take any cash out. The new VA loan simply pays off the FHA loan. Here is how VA.gov describes the program.
If you want to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan, a VA-backed cash-out refinance loan may be right for you.
U.S. Department of Veterans Affairs, Cash-out refinance loan, VA.gov, last updated January 7, 2026. Read the page.
VA.gov lists three things that must all be true. You qualify for a Certificate of Eligibility, or COE, which is the VA document that shows your service qualifies. You meet VA's and your lender's standards for credit and income. And you live in the home you are refinancing. The Nevada guide to getting your VA COE shows how to request it.
Some veterans bought with FHA before they had their COE in hand. That earlier FHA loan is what this guide is about.
Which VA refinance moves an FHA loan to VA?
The VA cash-out refinance moves an FHA loan to VA. VA sorts it into two types by loan size, not by whether you get cash.
VA set up two labels in Circular 26-18-30 in December 2018. That circular was rescinded in 2020, but VA's current Quick Reference Document for Cash-Out Refinances still sorts loans the same way.
- Type I. The new loan, counting the VA funding fee, is not more than the payoff of the old loan.
- Type II. The new loan, counting the funding fee, is more than the payoff of the old loan.
So if you add the funding fee to the new loan, the switch is usually Type II, even with no cash in your pocket. For a switch from FHA, that label changes little. VA's own lender guide lists the same short set of requirements for Type I and Type II when the old loan is not a VA loan.
The VA streamline refinance cannot do this job. It is called an IRRRL, short for interest rate reduction refinance loan, and it only refinances a loan that is already a VA loan. The Nevada VA IRRRL guide covers that path for later, once your loan is VA. The VA cash-out refinance guide for Nevada covers the full program, including taking equity out as cash.
What VA rules apply when the old loan is FHA?
When the loan being paid off is FHA, VA requires a net tangible benefit and two written disclosures. Its waiting period and 36-month cost test do not apply.
A net tangible benefit is a clear gain for you that the lender must show. VA's rule, 38 CFR 36.4306, lists eight ways to meet it. Dropping mortgage insurance is the first one on the list.
The new loan eliminates monthly mortgage insurance, whether public or private, or monthly guaranty insurance;
38 CFR 36.4306(a)(3)(i)(A), Refinancing of mortgage or other lien indebtedness, Electronic Code of Federal Regulations. Read the rule.
The rule also makes the lender compare the old loan and the new loan side by side. That comparison covers the payoff, the loan type, the interest rate and the term. It also shows the total you would pay over each loan, and the loan-to-value ratio (the loan as a share of the home's value). The lender must also estimate how much home equity the refinance removes. You get it within 3 business days of applying and again at closing, and you sign that you got it both times.
| VA rule | Old loan is VA | Old loan is FHA (or any non-VA loan) |
|---|---|---|
| At least one net tangible benefit | Required | Required |
| Loan comparison, twice | Required | Required |
| Waiting period: 210 days and 6 payments | Required | Not required by VA |
| Costs recouped within 36 months | Required on Type I | Not required by VA |
| New loan at most 100% of VA value | Required | Required |
| New VA appraisal | Required | Required |
The 36-month test is recoupment, which means earning back your closing costs through lower payments. VA applies it, and the waiting period, only when the old loan is a VA loan. That is what the regulation's paragraphs (b) and (c) say.
Valley West take.No VA waiting period does not mean no lender rules. Ask each lender early if it sets its own minimum time since your FHA loan closed. And ask to see the VA comparison form before you pay for an appraisal.
What does FHA mortgage insurance cost you now?
On FHA loans insured since March 20, 2023, the yearly mortgage insurance premium is 0.50% or 0.55% of the loan. Loans from 2015 to early 2023 were set at 0.80% or 0.85% under HUD's older table.
FHA charges two kinds of mortgage insurance premium, or MIP, which is FHA's insurance on the loan that you pay for. The upfront MIP is 1.75% of the base loan and is paid once. The CFPB notes it can be added to the loan. The annual MIP is billed monthly inside your payment. HUD's Mortgagee Letter 2023-05 set today's yearly rates for loans HUD insured on or after March 20, 2023. Under that table, a loan that started above 90% of the home's value pays the premium for the life of the loan.
| LTV when the loan was made | Yearly MIP | How long it lasts |
|---|---|---|
| 90% or less | 0.50% | 11 years |
| Over 90% up to 95% | 0.50% | Life of the loan |
| Over 95% (a small down payment) | 0.55% | Life of the loan |
Older loans were priced higher. HUD's Mortgagee Letter 2015-01 set these yearly rates for FHA case numbers assigned on or after January 26, 2015. They held until the 2023 cut.
| LTV when the loan was made | Yearly MIP |
|---|---|
| 95% or less | 0.80% |
| Over 95% | 0.85% |
Check your own loan. Your rate is on your closing papers, and the monthly amount is on your mortgage statement.
The CFPB, the federal consumer finance agency, sums up the difference in one line.
With VA-backed loans, which are loans intended to help servicemembers, veterans, and their families, there is no monthly mortgage insurance premium.
Consumer Financial Protection Bureau, What is mortgage insurance and how does it work? Read the answer.
There is one more cost to know about. When an FHA borrower refinances into another FHA loan within 3 years, HUD gives back part of the upfront MIP as a credit. A move to VA gets no such credit.
If the Borrower is refinancing their current FHA-insured Mortgage to another FHA-insured Mortgage within 3 years, a refund credit is applied to reduce the amount of the Upfront Mortgage Insurance Premium (UFMIP) paid on the refinanced Mortgage, according to the refund schedule shown in the table below
U.S. Department of Housing and Urban Development, Handbook 4000.1, section II.A.8.d.iv, Upfront Mortgage Insurance Premium Refunds, page 436, last revised August 12, 2026. Read the handbook.
HUD's schedule starts at 80% of the upfront premium in the first month, then 78% the next month, 76% the month after, and so on. At month 12, it is 58%. After 3 years, there is no credit. So a veteran whose FHA loan is under 3 years old gives up that credit by going to VA. After 3 years, there is nothing to give up. The FHA site's guide to refinancing out of FHA MIP covers the same math for a move to a conventional loan.
How many months of FHA premiums equal the VA funding fee?
At a 0.55% yearly FHA premium, a 2.15% VA funding fee equals about 47 months of FHA premiums. At an older loan's 0.85%, it is about 30 months. If you are exempt, there is no funding fee to earn back.
The VA funding fee is a one-time charge on most VA loans that helps fund the program. For a cash-out refinance, VA.gov lists 2.15% for first use and 3.3% after first use. You can pay it at closing or add it to the loan.
Here is the math, kept in percentages of the loan so it fits any balance.
- Monthly share of the FHA premium. 0.55% a year divided by 12 is about 0.0458% of the loan each month.
- First use. 2.15% divided by 0.0458% is about 47 months, just under 4 years.
- After first use. 3.3% divided by 0.0458% is about 72 months, or 6 years.
- At a 0.50% FHA premium. The same fees take about 52 and 79 months.
- At an older loan's 0.85% or 0.80%. 2.15% takes about 30 or 32 months. 3.3% takes about 47 or 50 months.
- Exempt from the fee. Zero divided by anything is 0 months. With no funding fee there is nothing to earn back. The new loan's rate and closing costs still decide your total cost.
This compares the two charges only. FHA figures its premium on your balance, which falls over time, so the real break-even runs a little longer. Closing costs add time too. A different interest rate on the new loan can change the answer more than either fee, so compare full loan offers. These figures are illustrative only and are not a quote, offer, or commitment to lend.
Who is exempt? VA.gov lists five groups, including veterans who receive VA disability compensation and surviving spouses who receive Dependency and Indemnity Compensation. The 2026 VA funding fee guide for Nevada has the full list. If a disability rating comes later and reaches back before your closing date, the VA funding fee refund guide explains how to ask for the fee back.
Paying FHA mortgage insurance as a veteran?
Check whether a VA refinance fits your loan. Rules read September 30, 2026. Bring your latest mortgage statement and your COE if you have it. A local lender can review your VA eligibility and walk through VA's comparison with you. No obligation, and all loans are subject to approval.
Check my VA refinanceCheck your break-even
The break-even checker below shows how many months of FHA premiums equal your VA funding fee.
FHA premium vs. VA funding fee
The math runs in your browser and uses percentages of the loan only. It is not a quote, offer, or commitment to lend.
A 2.15% funding fee equals about 47 months of a 0.55% FHA premium. This compares only those two charges. The new loan's interest rate and closing costs can change the result.
Method: months = funding fee % divided by (yearly FHA premium % divided by 12). Funding fees are VA.gov's cash-out refinance rates, last updated September 22, 2026. The 0.50% and 0.55% premiums are from HUD Mortgagee Letter 2023-05, and 0.80% and 0.85% from Mortgagee Letter 2015-01. Loans from before 2015 can carry other rates; read yours from your closing papers. Ignores the falling balance, closing costs and any rate change.
How much equity do you need to refinance FHA to VA?
VA lets the new loan reach 100% of the home's value from the VA appraisal. Any part of the funding fee that would push the loan past 100% must be paid in cash at closing.
That is the rule in 38 CFR 36.4306(a)(1) and (a)(2). The value is the reasonable value VA sets from its appraisal. Your lender can set a lower cap.
Here is how it plays out, in percentages of the home's VA value.
- Your FHA payoff. Say it is 99% of the VA value.
- Room under the cap. 100% minus 99% leaves 1% of the value.
- The fee. A 2.15% funding fee on a loan that size is about 2.1% of the value. It does not fit in 1%.
- Result. The part of the fee above 100% is paid in cash at closing. An exempt veteran has no fee to fit.
These figures are illustrative only and are not a quote, offer, or commitment to lend. The appraisal decides how much room you have. The Nevada VA appraisal requirements guide covers what the appraiser checks. The home equity calculator gives a rough starting point before you order one.
One more check if you own other property. Entitlement is the amount VA backs on your loans. With full entitlement, VA.gov says there is no VA loan limit. If a VA loan on another home is still open, the Las Vegas VA entitlement guide shows how the rest is figured.
What if your FHA loan has Nevada down payment help?
If the Nevada Housing Division's Worker Advantage program helped with your down payment, its second loan must be paid off when you refinance.
That help is a second loan behind your first mortgage. On a refinance, a second loan must agree to stay in second place behind the new loan. That is called subordination. For Worker Advantage, the Nevada Housing Division says it will not do that.
Nevada Housing Division will not subordinate its second loan position if the borrower refinances the first mortgage or obtains a home equity line of credit (HELOC).
Nevada Housing Division, Worker Advantage Program Administrator's Guidelines, revised July 16, 2026, page 16. Read the guide.
So the new VA loan must pay off both the FHA loan and that second, or you pay the second in cash. Both still have to fit under VA's 100% cap. Other Nevada programs have their own guides, so read the one for yours.
Valley West take.If you have a state second loan, ask for its payoff statement first. That one number can decide whether the whole refinance fits under VA's 100% cap.
One more item for closing day. Lenders typically require proof of homeowners insurance before closing. Valley West Insurance, an affiliate of Valley West Mortgage, offers a home insurance coverage checkup. You are never required to use it or any particular insurance provider, and your loan does not depend on it.
The decision rule
An FHA to VA refinance may be worth comparing when one of the first three is true. The last two are checks that must also pass.
- You are exempt from the funding fee. Then there is no fee to earn back against the FHA premium you would stop paying. Still compare the full offer, including rate and closing costs.
- You expect to keep the home longer than the months shown above. At 0.55%, that is about 47 months on first use or 72 months after first use. At 0.85%, it is about 30 or 47 months.
- Your FHA insurance will not end on its own soon. If it is set to end at year 11, that date is on your closing papers. The closer it is, the smaller the gain.
- Must also hold: the numbers fit under 100% of the VA value. Include any state down payment second you must pay off.
- Cost to weigh: your FHA loan is over 3 years old, or you accept losing the refund credit. Under 3 years, you give up HUD's upfront premium credit.
Whatever fits, the interest rate on the new loan can outweigh every item above. A VA loan with no monthly insurance can still cost more each month if your FHA loan has a much lower rate. Ask for full written offers and compare the total. If none of these fit, keeping the FHA loan for now may be the better call. A VA loan can still be used for your next purchase.
The bottom line
A veteran with an FHA loan in Las Vegas can move it to VA through VA's cash-out refinance program. The monthly FHA insurance ends. VA requires a clear benefit and two written comparisons, but not the waiting period or 36-month cost test it uses for VA-to-VA refinances.
The trade is the funding fee. At a 0.55% FHA premium, a 2.15% fee equals about 47 months of premiums, and an exempt veteran has no fee to earn back. The new loan's rate and closing costs still count. Keep the new loan at or under 100% of the VA value, and plan for any state second loan. These figures are illustrative only and are not a quote, offer, or commitment to lend.
Weighing a VA refinance against other options? Valley West's main site has a Las Vegas refinance overview that compares the common paths. For a side-by-side of the two loan programs, see VA vs FHA in Nevada.
Article history
- September 30, 2026, first published. Every rule and quotation was read that day in the sources listed below.
| Rule | Source | Date in source |
|---|---|---|
| VA refinance rules | 38 CFR 36.4306 | Current eCFR text, read 09/30/26 |
| Type I and Type II | VA Circular 26-18-30 (rescinded 2020) and VA's Quick Reference Document | 12/19/18; document undated |
| Funding fee rates | VA.gov funding fee page | Updated 09/22/26 |
| FHA annual MIP | HUD Mortgagee Letter 2023-05 | Effective 03/20/23 |
| Older FHA annual MIP | HUD Mortgagee Letter 2015-01 | Case numbers from 01/26/15 |
| FHA upfront premium refund | HUD Handbook 4000.1 | Revised 08/12/26 |
| State second loan payoff | NHD Worker Advantage guide | Revised 07/16/26 |
Frequently asked questions
Common questions about refinancing an FHA loan into a VA loan, answered from VA and HUD rules.
Can you refinance an FHA loan into a VA loan?
Yes. VA's cash-out refinance program can pay off an FHA loan and replace it with a VA loan, even if you take no cash out.
You need a Certificate of Eligibility (the VA document that shows you qualify), you must meet VA's and your lender's credit and income standards, and you must live in the home.
Does refinancing from FHA to VA get rid of mortgage insurance?
Yes. A VA loan has no monthly mortgage insurance premium, so the monthly FHA premium ends when the FHA loan is paid off.
VA charges a one-time funding fee instead, unless you are exempt.
Can I use a VA IRRRL to refinance my FHA loan?
No. An IRRRL (interest rate reduction refinance loan) only refinances a loan that is already a VA loan.
To move from FHA to VA, you use VA's cash-out refinance program.
Is there a waiting period to refinance FHA to VA?
Not under VA's rule. The 210-day and six-payment waiting period in 38 CFR 36.4306 applies only when the loan being paid off is a VA loan.
Individual lenders can set their own stricter rules.
What is the VA funding fee on an FHA to VA refinance?
For a VA cash-out refinance, VA.gov lists 2.15% for first use and 3.3% after first use.
You can pay it at closing or add it to the loan. Veterans who receive VA disability compensation, and some others, do not pay it.
Do I get my FHA upfront premium back if I refinance to VA?
No. HUD gives a refund credit on the upfront premium only when you refinance into another FHA loan within 3 years.
A refinance into a VA loan earns no FHA refund credit.
How much equity do I need to refinance FHA to VA?
VA lets the new loan reach 100% of the home's value set by the VA appraisal. Any part of the funding fee that would push the loan past 100% must be paid in cash at closing.
Your lender can set a lower limit.
Ready to see if VA fits your FHA loan?
Talk to a local Nevada mortgage lender about your VA eligibility, your funding fee status and VA's refinance comparison. A short review, no pressure, and no obligation.
Start my VA reviewAbout this guide
Sources
- Electronic Code of Federal Regulations, 38 CFR 36.4306, Refinancing of mortgage or other lien indebtedness. Paragraphs (a)(1) through (a)(3), (b) and (c). Read September 30, 2026.
- U.S. Department of Veterans Affairs, Circular 26-18-30, Revisions to VA-Guaranteed Cash-Out Refinancing Home Loans, December 19, 2018, rescinded January 1, 2020. Paragraph 4a, IRRRL, Type I and Type II; cited for the origin of the two labels. Read September 30, 2026.
- U.S. Department of Veterans Affairs, Loan Guaranty Service, Quick Reference Document for Cash-Out Refinances. Pages 5 and 8 to 9, requirements for VA to VA and non-VA to VA refinances. Read September 30, 2026.
- U.S. Department of Veterans Affairs, Cash-out refinance loan, VA.gov, last updated January 7, 2026. Read September 30, 2026.
- U.S. Department of Veterans Affairs, VA funding fee and loan closing costs, VA.gov, last updated September 22, 2026. Cash-out refinance rates and exemptions. Read September 30, 2026.
- U.S. Department of Veterans Affairs, VA home loan limits, VA.gov. Full entitlement. Read September 30, 2026.
- U.S. Department of Housing and Urban Development, Mortgagee Letter 2023-05, Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates, February 22, 2023, effective March 20, 2023. Pages 2 and 3. Read September 30, 2026.
- U.S. Department of Housing and Urban Development, Mortgagee Letter 2015-01, Reduction of Federal Housing Administration (FHA) annual Mortgage Insurance Premium (MIP) rates, January 9, 2015, effective for case numbers assigned on or after January 26, 2015. Page 2. Read September 30, 2026.
- U.S. Department of Housing and Urban Development, Single Family Housing Policy Handbook 4000.1, section II.A.8.d.iv, Upfront Mortgage Insurance Premium Refunds, page 436, and Appendix 1.0, Mortgage Insurance Premiums, page 1749, last revised August 12, 2026. Read September 30, 2026.
- Consumer Financial Protection Bureau, What is mortgage insurance and how does it work? Read September 30, 2026.
- Nevada Housing Division, Worker Advantage Program Administrator's Guidelines, revised July 16, 2026, page 16, Subordination Agreements and Payoff Statements. Read September 30, 2026.
Keep exploring
Refinance
VA cash-out refinance in Nevada
The full program, including taking equity out as cash.
Streamline
VA IRRRL in Nevada
The short-form refinance once your loan is VA.
Funding fee
VA funding fee in 2026
Rates, exemptions and how to pay it.
Compare
VA vs FHA in Nevada
How the two programs stack up side by side.
Appraisal
VA appraisal requirements
What the appraiser checks and how value is set.
Next step
Check my VA refinance
Have a local lender review your eligibility.