FHA cash-out refinance rules, in the order lenders check them
HUD and consumer sources
Handbook note
Owner's Equity Handbook summarizes HUD's Handbook 4000.1 and mortgagee letters and CFPB consumer guidance. It is not a government website.
Last reviewed against the primary sources listed below.
How each chapter uses them
Occupancy, payment history and the equity cap come from the HUD handbook. Credit, income and comparison chapters draw on CFPB explainers and Fannie Mae's cash-out rules.
HUD and consumer sources
- HUD Single Family Housing Policy Handbook 4000.1
- HUD FHA Resource Center: answers to common questions
- CFPB: Home equity loans, cash-out refinances and other options similar to a HELOC
- Fannie Mae Selling Guide B2-1.3-03: Cash-out refinance transactions
- CFPB: What is a debt-to-income ratio?
- CFPB: Credit reports and scores
- CFPB: What is a loan-to-value ratio and how does it relate to my costs?
- CFPB: What is mortgage insurance and how does it work?