FHA cash-out refinance rules, in the order lenders check them
How an FHA cash-out refinance works
Handbook note
An FHA cash-out refinance replaces your current mortgage with a new, larger FHA loan and pays you the difference after payoffs and costs. You apply with an FHA-approved lender, the home is appraised, the loan is underwritten with full credit and income review, and you close. On a primary home, funds are released after the right-to-cancel period.
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Steps
- Choose an FHA-approved lender.
- Apply and receive a Loan Estimate.
- Appraisal.
- Underwriting.
- Closing and funding.
Owner questions
What is an FHA cash-out refinance?
A refinance into a new FHA loan that is larger than what you owe, with the difference paid to you.
Do I need to have an FHA loan already?
No. You can refinance from any loan type into FHA cash-out if you qualify.