FHA cash-out refinance rules, in the order lenders check them
Rule 1: twelve months in the home
Handbook note
HUD allows an FHA cash-out refinance only on a home you have owned and lived in as your main residence for the twelve months before the case number is assigned. Lenders verify it with records such as tax returns, utility bills or your driver's license. A recently purchased home, a second home or a rental does not qualify.
Last reviewed against the primary sources listed below.
Ways lenders verify
- Address on tax returns and W-2s.
- Utility bills.
- Credit report address history.
Owner questions
Can I do an FHA cash-out on a rental property?
No. FHA cash-out requires that you live in the home as your main residence.