FHA cash-out refinance rules, in the order lenders check them
FHA cash-out to pay off debt
Handbook note
Paying off cards or loans with an FHA cash-out moves that debt onto your home, often over a much longer term with mortgage insurance added. The monthly total may fall while total interest rises. Compare the full cost and remember your home secures the new debt.
Last reviewed against the primary sources listed below.
Compare
- Current monthly debt payments.
- New mortgage payment including insurance.
- Total cost over the term.
Owner questions
Can I use an FHA cash-out to pay off credit cards?
Yes, but your home then secures that debt.
Is consolidating debt with FHA a good idea?
Compare total cost, not just the monthly figure.