FHA refinance loans and the FHA streamline refinance allow borrowers to reduce the interest rate on their current mortgages. Refinancing your home loan involves the same process and work as you put into your first mortgage.

FHA.com: Home Purchase and Refinance Loans

FHA Loan Programs for 2024

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?




- Improving Your Credit Score Has Never Been More Important -

FHA.com is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

FHA Refinance Loans for Homeowners

Learn About the FHA Cash-Out Refi and Other Programs

With home values continuing to rise, homeowners have gained more equity in recent years. This may allow you to refinance your home and eliminate existing monthly mortgage insurance premiums. You may also use that equity to pay off high interest credit debt or use the cash for home repairs.



Homeowners enjoy the benefits of investing in their property year after year. For some, there comes a time when that investment can come in handy. Refinancing with an FHA loan can prove to be an effective way to put that equity to work. Keep in mind that FHA refinancing is only available to homeowners who are currently using their home as their principal residence now.

FHA Cash-Out Refinance

FHA Cash-Out Refinance

This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A Cash-Out Refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe. To be eligible for an FHA cash-out refinance, borrowers will need at least 20 percent equity in the property based on a new appraisal.

A Cash-Out Refinance can be a smart option for many homeowners. Whether it’s for home improvement, college tuition, debt consolidation (to pay off other high interest rate loans), student loan debt, or home remodeling, you can access money that you have in an illiquid asset.

  • Credit Score Guidelines
    Applicants must have a minimum credit score of 580 to qualify for an FHA cash-out refinance.
  • Debt-to-Income Ratio Guidelines
    The FHA has guidelines regarding an applicant's debt-to-income ratio in order to keep people from entering into mortgage agreements that they cannot afford.
  • Maximum Loan-to-Value Guidelines
    FHA Cash-Out Refinance loans have a maximum loan-to-value of 80 percent of the home's current value.
  • Payment History Requirements
    Documentation is required to prove that the borrower has made all the monthly payments for the previous 12 months.



FHA Streamline Refinance

FHA Streamline Refinance

This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamline Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

  • Your Current Mortgage Must Already Be FHA-Insured
    While refinancing from a conventional loan to one backed by the FHA is possible, the Streamline option is only available to borrowers with an existing FHA loan.
  • The Mortgage Must Be Current
    This means that you have not missed any payments. You must have made at least 6 monthly payments and have had your existing mortgage for a minimum of 210 days before you can apply for the Streamline Refinance option.
  • There Must Be a Net Tangible Benefit
    The FHA actually requires that there be some advantage for the borrower if they go ahead with a Streamline Refinance.



FHA Simple Refinance

FHA Simple Refinance

The FHA Simple Refinance allows homeowners to go from their current FHA Loan into a new one, whether it's a fixed-rate loan or an ARM. This refinance is the most straightforward, and there is no option for cash-out. Lenders will require a credit qualification, income, and assets to ensure the borrower meets the loan requirements.

Homeowners should think about several factors while considering the benefits of refinancing their mortgages. Below are some of the most common goals borrowers have when moving forward with their refinance options.

  • Lower Monthly Payments
    Refinancing your home gives you the opportunity to get a lower interest rate on your mortgage, which means smaller monthly payments.
  • Switch to a Fixed Rate Loan
    Even by switching from an ARM to fixed rate mortgage, you could avoid higher monthly payments and will have a set amount to pay every month.
  • Earn Cash on Your Home Equity
    It allows you to borrow cash against your home equity in the case of large upcoming expenses. By liquidating this equity you can get cash-in-hand.



FHA Rehab Mortgages

FHA Rehab Mortgages

Many buyers decide to purchase a home that is significantly older, and not in the best condition. The FHA 203(k) Rehabilitation Loan enables borrowers to finance the purchase or refinance of a home, along with its renovation or "rehabilitation" of the property. HUD allows Section 203(k) financing to be used for:

  • Structural alterations and reconstruction
  • Modernization and improvements to the home's function
  • Elimination of health and safety hazards
  • Changes that improve appearance and eliminate obsolescence
  • Reconditioning or replacing plumbing; installing a well and/or septic system
  • Adding or replacing roofing, gutters, and downspouts
  • Adding or replacing floors and/or floor treatments
  • Major landscape work and site improvements
  • Enhancing accessibility for a disabled person
  • Making energy conservation improvements



FHA Reverse Mortgages

FHA Rehab Mortgages

An FHA reverse mortgage is designed for homeowners age 62 and older. It allows the borrower to convert equity in the home into income or a line of credit. The FHA reverse mortgage loan is also known as a Home Equity Conversion Mortgage (HECM), and is paid back when the homeowner no longer occupies the property.

There are requirements for an FHA-insured reverse mortgage or HECM;

  • The loan is based on the age of the youngest borrower if there are co-signers.
  • Homeowners are required to get consumer counseling and education before a HECM loan is approved.
  • Borrowers must own and live on the property as the primary residence.



SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


FHA Loan Articles and Mortgage News

Construction Loan or Rehab Loan?

February 27, 2024 - If you have never bought or built a home, your options may initially seem confusing. The more you learn about different loan types and the application of those home loans, the more you realize you have a wealth of options depending on your goals and needs for the home.

Home Insurance Coverage for the House You Buy

February 26, 2024 - FHA loans and other government-backed mortgages do not (on paper) require you to carry specific types of homeowner’s insurance, but you’ll want coverage just the same to protect your investment. Mortgage insurance protects the lender in case you default on the loan.

15 Year vs. 30 Year FHA Mortgages

February 10, 2024 - What’s the difference between a 15-year mortgage and a 30-year home loan? Aside from the obvious (the number of years you’ll pay on the mortgage), there are some important things to know about your loan term.

How to Compare Mortgage Lenders

February 4, 2024 - Not sure if an FHA mortgage is right for you? One of the most often-repeated forms of advice for finding the right lender for you is to compare several lenders and ask about your loan options, especially when it comes to the differences between conventional and FHA loans.

How You Can Use an FHA Home Loan

January 31, 2024 - There are many uses for FHA home loans, and some borrowers don’t realize there are separate types of mortgage loans for various uses. FHA mortgages and related loan products aren’t just for buying suburban houses.

FHA Rehab Loan Options You Might Consider

January 17, 2024 - The FHA 203(k) rehabilitation mortgage is a type of FHA loan you can use to buy and renovate a home or refinance an existing mortgage and renovate the home simultaneously. There are options you need to know and a few things that you should cross off your list of options.

Refinancing With an FHA Loan in the New Year

January 9, 2024 - As mortgage rates begin to fall in 2024, some borrowers and potential FHA loan applicants want to know what kinds of refinance opportunities might exist in the new year and what property types. We examine some of the strongest options below.

Hope for Refinance Loans in 2024

December 22, 2023 - 2023 was not a great year to look for a refinance loan. Interest rates flirted with the 8% range in 2023, and anyone with an existing loan wouldn’t want to refinance into a higher rate. Rates began moving back to the 7% zone with many expecting further recovery and a downward trend.

Why FHA Home Loan Rates Are Recovering

December 14, 2023 - The Federal Reserve took measures to control inflation, including raising the cost of lending money by increasing the Federal Funds Rate. That rate, previously just above 0%, has risen as high as 5.5%. Those higher rates made people with lower rates stop plans to refinance.

Housing Market Predictions for 2024

December 13, 2023 - Real estate brokers and listing services typically publish articles discussing their predictions for the new year late in the current year. This year is no different. A wide range of financial and real estate pundits and publications have chimed in on what they view as the future of real estate.