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The VA Funding Fee is a one-time fee paid directly to the Department of Veterans Affairs (VA) for every VA purchase or refinance loan.
But refinancing into a VA loan is an option. A standard VA refinance (no cash-out) allows the loan amount to be up to 100 percent of the value of the home. In the above example, let's say the property appraised at $205,000 the loan can be refinanced from a conventional mortgage to a VA loan.If the interest rate is low enough for the VA loan compared to an existing conventional or FHA loan, then it can make sense to refinance into a new VA mortgage.onventional to VA Refinance. While a VA streamline refinance only allows a VA to VA transaction, VA loans can refinance other existing loan types including FHA and conventional mortgages. While not common, refinancing from a conventional to a VA loan is advantageous when current property values are a concern.