FHA Refinance with 'Cash Out'

Let an FHA Cash Out Refinance Loan help you get you a lump sum when you close your loan.

An FHA Cash-Out Refinance Loan allows homeowners with an existing mortgage to refinance their loan while taking out cash from their home's equity. Backed by the Federal Housing Administration (FHA), this loan is ideal for borrowers who may not qualify for conventional refinancing due to lower credit scores or higher debt-to-income ratios.

 With an FHA Cash-Out Refinance, homeowners can borrow up to 80% of their home's appraised value, using the difference between their existing loan balance and the new loan amount as cash. This money can be used for various financial needs, such as home improvements, debt consolidation, or unexpected expenses.

One of the key benefits of this loan is more lenient credit and income requirements compared to conventional loans. However, borrowers must meet FHA eligibility standards, including a minimum credit score of typically 580-600, a debt-to-income ratio limit, and at least 12 months of on-time mortgage payments.

Some of these features include:

  • Immediate Access to Home Equity

  • Lower Credit Score Requirements

  • Competitive Interest Rates

  • Higher Loan-to-Value (LTV) Ratios

  • Flexible Use of Funds

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  • 'Fixed and Adjustable Rate Options

  • Assumable Loan

 

The important step in securing your FHA loan is to get an FHA Pre-Approval Letter. The peace of mind that comes with knowing that your mortgage loan has been pre-approved will allow you to proceed with confidence.

FHA Debt Consolidation Application