Quick answer
For borrowers who already have an FHA loan. Reduced documentation and often no appraisal. It must produce a net tangible benefit, such as a lower combined rate and mortgage insurance, or a move from adjustable to fixed.
Key takeaways
- Available from FHA or non-FHA loans. FHA rate-and-term (credit-qualifying) refinance
- Lets owner-occupants take equity out, subject to FHA’s maximum loan-to-value and occupancy rules. FHA cash-out refinance
- If you have built enough equity, refinancing to a conventional loan may eliminate mortgage insurance. Leaving FHA
FHA Streamline Refinance
For borrowers who already have an FHA loan. Reduced documentation and often no appraisal. It must produce a net tangible benefit, such as a lower combined rate and mortgage insurance, or a move from adjustable to fixed. No cash out beyond a small allowance.
FHA rate-and-term (credit-qualifying) refinance
Available from FHA or non-FHA loans. Fully underwritten with an appraisal. Useful when you want to change the term, add or remove a borrower, or move a conventional loan to FHA.
FHA cash-out refinance
Lets owner-occupants take equity out, subject to FHA’s maximum loan-to-value and occupancy rules. Fully underwritten.
Leaving FHA
If you have built enough equity, refinancing to a conventional loan may eliminate mortgage insurance. Compare both.
Comparison at a glance
| Option | Existing FHA needed? | Appraisal | Cash out |
|---|---|---|---|
| Streamline | Yes | Often not | No |
| Rate-and-term | No | Yes | No |
| Cash-out | No | Yes | Yes |
Updated · Last reviewed
This page is general education. Program rules change; confirm current requirements with the official sources linked here and with a licensed lender.