FHA cash-out refinance rules, in the order lenders check them
Rule 4: credit and income
Handbook note
Unlike a streamline refinance, an FHA cash-out is fully underwritten. Lenders pull credit, verify income and assets, and calculate your debt-to-income ratio with the new payment. FHA's standards can be more flexible than many conventional programs, but lenders may add their own minimum scores.
Last reviewed against the primary sources listed below.
Gather early
- Recent pay stubs and W-2s or tax returns.
- Bank statements.
- A list of debts and monthly payments.
Owner questions
Is an FHA cash-out easier to qualify for than conventional?
Often on credit, but it carries mortgage insurance. Compare both.