FHA Refinance loans offer a few different options for refinancing your loan. FHA refinances can be done as a “streamline” to simply reduce your interest rate or loan term. FHA refinances can also be done as “cash out” to use the equity in your home to pay off other debts or pull cash out. Generally speaking both transactions can be done with very little effort and minimal documentation required. For complete details on the FHA streamline refinance program or FHA cash out loan see below.
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FHA Refinance with Cash Out
FHA refinance with cash out, sometimes called an FHA cash out refinance, is used to take cash out of the home’s equity. This type of transaction pays off your existing first mortgage loan or loans on the property and any other debts that the homeowner wishes to pay off. If there is any remaining equity it can be received as cash back at closing for other needs. The cash can be used for any purpose. The borrower needs to qualify for this loan much like when they purchased the home. This type of FHA refinance does require an appraisal all other loan qualifications.