Common questions
Short answers to common questions about FHA loans, then a summary of each of the 5 guides on FHA Cash-Out Guide, quoted from the guide itself.
About this site and the basics
Is this site part of HUD or FHA?
No. It is an independent educational site and is not affiliated with HUD, FHA or any government agency.
Where can I check FHA loan limits?
Use HUD’s FHA Mortgage Limits lookup by county.
Does FHA lend money directly?
No. FHA insures loans made by FHA-approved lenders.
Can I get free help?
Yes. HUD-approved housing counseling agencies offer free or low-cost counseling.
What the guides on FHA Cash-Out Guide cover
What does “FHA Cash-Out Refinance: How It Works” cover?
- What it is. An FHA cash-out refinance replaces your current mortgage (FHA or not) with a new FHA-insured loan larger than what you owe, paying you the difference.
- Mortgage insurance. A new upfront and annual mortgage insurance premium apply.
- Loan limits. FHA loan limits vary by county.
What does “FHA Cash-Out Occupancy and Seasoning Explained” cover?
- Occupancy. FHA cash-out requires the home to be your principal residence for the required period before the case number is assigned.
- Payment history. FHA requires on-time payments on the existing mortgage for a recent period.
- Properties owned free and clear. Homes with no mortgage may be eligible for cash-out under FHA rules.
What does “FHA Cash-Out Appraisal and Property Standards” cover?
- Purpose. The FHA appraisal establishes value and checks that the property meets HUD's minimum property requirements and standards for safety, security and soundness.
- Common issues. Peeling paint on older homes, missing handrails, roof leaks and inoperable systems can lead to required repairs before closing.
- Preparing. Fix obvious safety issues before the appraisal, make utilities available and provide access to all areas.
What does “FHA Cash-Out Documents Checklist” cover?
- Identity and income. Government ID, recent pay stubs, W-2s for two years and tax returns if self-employed or with other income.
- Assets. Recent bank statements, especially if funds are needed to close.
- Current mortgage. Recent mortgage statement and payoff information, plus any second lien statements.
What does “FHA Cash-Out Refinance: The Process From Application to Funding” cover?
- Application and initial disclosures. You provide income, asset and property information, and the lender pulls credit.
- Appraisal and underwriting. FHA requires an appraisal by an FHA-roster appraiser, who also checks the property against HUD's minimum property standards.
- Closing disclosure and rescission. At least three business days before closing, you receive a Closing Disclosure.
Read “FHA Cash-Out Refinance: The Process From Application to Funding”
Answers are general education. The guide summaries are quoted from the guides on this site, which cite their official sources.