Common questions

No. It is an independent educational site and is not affiliated with HUD, FHA or any government agency.

Use HUD’s FHA Mortgage Limits lookup by county.

No. FHA insures loans made by FHA-approved lenders.

Yes. HUD-approved housing counseling agencies offer free or low-cost counseling.

• FHA Streamline Refinance. For borrowers who already have an FHA loan.
• FHA rate-and-term (credit-qualifying) refinance. Available from FHA or non-FHA loans.
• FHA cash-out refinance. Lets owner-occupants take equity out, subject to FHA’s maximum loan-to-value and occupancy rules.

Read “FHA Refinance Options Compared”

• MIP duration. For FHA loans with case numbers assigned on or after June 3, 2013, annual MIP lasts 11 years if the original loan-to-value was 90 percent or less, and for the life of the loan otherwise (HUD Mortgagee Letter 2013-04, carried…
• Refinance to conventional. With enough equity, refinancing to a conventional loan can eliminate mortgage insurance.
• Paying down. Paying down principal does not cancel life-of-loan MIP on newer FHA loans.

Read “Removing FHA Mortgage Insurance”

• What it is. A rate-and-term refinance replaces your current loan with a new FHA loan, without taking significant cash out.
• Who it fits. It can suit borrowers with a non-FHA loan who want FHA financing, borrowers who need to remove a co-borrower, or those whose streamline options are limited.
• Loan-to-value. The maximum loan-to-value is higher than for cash-out.

Read “FHA Rate-and-Term Refinance: The Full-Underwriting Option”

• Why borrowers switch. For many FHA loans with case numbers assigned since June 2013, annual MIP lasts for the life of the loan when the original loan-to-value exceeded 90 percent.
• Equity needed. Conventional loans at or below 80 percent loan-to-value do not need private mortgage insurance.
• Credit. Conventional pricing depends heavily on credit score.

Read “FHA to Conventional: Ending Mortgage Insurance by Refinancing”

• Upfront and annual MIP. The upfront mortgage insurance premium is charged at closing and is usually financed.
• Streamline versus rate-and-term. A streamline refinance usually reduces documentation and may not require an appraisal, but limits cash to the borrower.
• Net tangible benefit. For streamline refinances, HUD requires that the new loan provide a measurable benefit, such as a reduced combined rate or a move from an adjustable to a fixed rate.

Read “FHA Refinance Glossary: Terms You Will See”