Yes—if you qualify.
Many homeowners refinance from an FHA loan into a conventional loan to eliminate FHA mortgage insurance, lower their monthly payment, or access some of their home’s equity through a cash-out refinance.
Whether you can do both at the same time depends on several factors, including:
- Your home’s current appraised value
- How much you still owe on your mortgage
- Your credit score
- Your debt-to-income ratio
- The amount of equity you have available
- The maximum loan-to-value (LTV) allowed for the loan program
If your home has appreciated in value and you’ve built enough equity, it may be possible to refinance into a conventional loan, pay off your existing FHA loan, and receive cash back at closing for home improvements, debt consolidation, or other eligible purposes.
The best way to determine whether a cash-out refinance makes sense is to compare your current loan with today’s interest rates, estimated closing costs, and the amount of equity available. We’ll walk through the numbers together so you can decide whether refinancing is financially beneficial.
To learn more about refinances, visit the Refinance page.