FHA cash-out refinance rules, in the order lenders check them
The FHA cash-out appraisal
Handbook note
Every FHA cash-out refinance needs a new appraisal by an FHA-roster appraiser. The appraised value sets how much you can borrow under the equity cap, and the appraiser also checks that the home meets FHA's minimum property standards for safety and soundness. Repairs may be required before closing.
Last reviewed against the primary sources listed below.
Prepare the home
- Fix peeling paint and safety hazards.
- Make sure utilities are on.
- Provide access to every room and the attic.
Owner questions
Does an FHA cash-out refinance require an appraisal?
Yes, a new FHA appraisal is required.
Can an FHA appraisal require repairs?
Yes, if the home does not meet minimum property standards.