FHA cash-out refinance rules, in the order lenders check them
MIP on a cash-out
Handbook note
An FHA cash-out refinance is a new FHA loan, so it carries an upfront mortgage insurance premium, usually financed into the loan, and an annual premium paid monthly. Because cash-out loans start with less equity, the annual premium often lasts for many years. Your Loan Estimate shows both.
Last reviewed against the primary sources listed below.
On your Loan Estimate
- Upfront premium in the loan amount or closing costs.
- Monthly mortgage insurance in the projected payments.
Owner questions
Does an FHA cash-out have PMI?
It has FHA mortgage insurance premiums, not private mortgage insurance.