Any experience with VA-backed cash-out refinance loan?

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Seems like a VA version of a Heloc?

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It isn't the same because it isn't a second lien. You are just refinancing the original VA loan and taking out cash. You also are not reducing your debt, you are increasing it by taking out the cash and (most likely) tacking on a higher interest rate to that original debt.

Me personally, I would do whatever I could to avoid the increased interest rate on the original loan balance. A quick look at the avg. 30yr VA cash-out refinancing rate is 7.61% right now. That would more than double my existing rate.

Oh I understand. Makes sense. Thanks.

I did this a couple of times.

The first time we had put about $350K into renovations out of my own pocket into the house and as rates were falling I was able to refi and get that cash back out and put it back into other investments while carrying it at 2.75%.

The last time I refi'd was when I was able to get 2.25% and I took EVERY SINGLE DOLLAR I had in equity out that was under the jumbo limit.

Being retired with a disability rating sure helped as I didn't have to pay ANYTHING in the funding fee. I was actually making money in credits to walk my rate down.