FHA cash-out refinance rules, in the order lenders check them
Rule 2: payment history
Handbook note
For a home with a mortgage, HUD generally requires that every payment in the past twelve months was made within the month due, or for the full time you have had the loan if shorter. A recent late payment usually means waiting until twelve clean months have passed. A home owned free and clear has no payment history to check.
Last reviewed against the primary sources listed below.
If you had a late payment
- Note the month it happened.
- Count twelve on-time months from the next payment.
- Apply after that, with a written explanation ready.
Owner questions
Can I get an FHA cash-out refinance with a late payment?
Usually not until you have twelve months of on-time payments.