FHA cash-out refinance rules, in the order lenders check them
FHA or conventional cash-out?
Handbook note
FHA cash-out tends to fit owners whose credit or debt load makes conventional pricing expensive. Conventional cash-out has no mortgage insurance at typical cash-out loan sizes and can be cheaper for strong credit. Ask lenders to quote both on Loan Estimates and compare the payment, mortgage insurance and total costs.
Last reviewed against the primary sources listed below.
Side by side
| FHA cash-out | Conventional cash-out | |
|---|---|---|
| Occupancy | Main residence, twelve months | Varies by occupancy type |
| Mortgage insurance | Upfront and annual | Usually none |
| Credit flexibility | Often more | Often less |
Owner questions
Which is cheaper, FHA or conventional cash-out?
It depends on your credit and equity. Compare Loan Estimates.