A lower credit score can open the door to an FHA refinance.
Qualify with a lower credit score- A streamlined process if you already have an FHA loan
- Better terms, even if your finances aren’t perfect
Why choose AmeriSave for an FHA refinance?
Get A Lower Rate
You could lower your rate and save big over the life of your loan.
Reduce Your Monthly Payment
Lower your monthly payment and put more money back in your pocket.
Relaxed Qualifications
Qualify with a lower credit score and higher debt-to-income (DTI) ratio.
Trusted Expertise
Over 730K clients. 23 years’ experience. One goal: helping you build a brighter future.
Smarter technology. Real numbers.
Get Personalized Loan OptionsSee your best loan options with technology that analyzes your finances in real time.
Flexible Loans And TermsPick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan QuicklyGet approved and funded quickly, so you can enjoy your new financial freedom.
Get Personalized Loan Options
See your best loan options with technology that analyzes your finances in real time.
Flexible Loans And Terms
Pick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan Quickly
Get approved and funded quickly, so you can enjoy your new financial freedom.
Refinance to a lower payment or get cash.
FHA offers two refinance paths: the Streamline for fast rate reduction, and the Cash-Out for getting cash from your equity. Both keep your loan FHA-insured.
Choose Your Refinance Path
Streamline: Lower your rate or payment with minimal paperwork and no appraisal. Cash-Out: Get cash from your equity with full underwriting and a required appraisal.
Get Your New Rate
FHA refinance rates often track closely with FHA purchase rates. Apply online for a personalized refinance rate.
Close Fast (Streamline) Or Standard (Cash-Out)
FHA Streamlines can close in 2 to 3 weeks; Cash-outs follow standard 30 to 45-day timelines with full underwriting.
Enjoy Your New Payment
Streamline: Get a lower rate, the same balance, and a lower monthly payment. Cash-Out: Get a new balance, cash in your pocket, and one simple monthly payment.
Two paths, both FHA-insured.
Streamline refinances allow rate reductions without an appraisal or full underwriting. Cash-out refinances let you get cash from your equity worth up to 80% of your home's value.
When An FHA Refinance Makes Sense
FHA refinance options are flexible; the right one depends on whether you need lower payments, cash, or a way out of FHA mortgage insurance.
Lower Your FHA Payment Fast
If rates have dropped since you got your FHA loan, a streamline can cut your payment with minimal paperwork and no appraisal.
Pull Cash From Equity
An FHA cash-out lets you access up to 80% of your home's value for renovations, debt consolidation, or major expenses; even if your credit isn't perfect.
Exit FHA Mortgage Insurance
If your equity has grown to 20% or more, refinancing into a conventional loan eliminates lifetime MIP. The numbers often justify the closing costs.
Consolidate A Second Mortgage
An FHA cash-out can roll a second mortgage or HELOC into your primary, leaving you with one fixed payment instead of two.
FHA Refinance Requirements
FHA refinance underwriting depends on which path you take; streamline is light, cash-out is full underwriting.
Streamline requires a current FHA loan in good standing for at least the prior six to twelve months. Cash-out accepts any loan type as the starting point.
Streamline: no minimum equity required. Cash-out: maximum 80% loan-to-value after the new loan amount.
580+ is the typical floor for both options at AmeriSave's threshold. Higher scores get better pricing on rate and MIP.
Streamline: minimal; often just mortgage statement and ID. Cash-out: full income, asset, employment, and appraisal documentation.
FHA Streamline vs. FHA Cash-Out Refinance
FHA gives you two refinance paths; one optimized for speed and lower rate, the other for pulling equity out of your home.
Pros And Cons of An FHA Refinance
FHA refinances are accessible to borrowers conventional lenders might decline, but they come with mortgage insurance trade-offs.
What Works In Your Favor
Flexible Credit Requirements
FHA accepts lower credit scores than conventional refinances, which can mean approval when other options say no.
Streamline Is Fast And Cheap
No appraisal, reduced documentation, and often no income verification means closing in weeks, not months, with lower fees.
Cash-Out Up To 80% Of Value
Higher allowed loan-to-value than many conventional cash-out programs, especially for borrowers with imperfect credit.
Government-Backed Pricing
FHA rates are competitive because the loan is insured by the government; lenders price accordingly.
Higher Debt-To-Income Tolerance
FHA underwriting allows higher DTI ratios than most conventional programs, which helps borrowers with student loans or other obligations.
What To Weigh Carefully
Mortgage Insurance Is Required
Upfront MIP and annual MIP apply to every FHA refinance. For most loans today, annual MIP stays for the life of the loan.
Streamline Only Works For Existing FHA Loans
If your current mortgage isn't FHA, you'll need a full refinance, and you'll be adding MIP, not avoiding it.
Closing Costs Still Apply
Even the streamline isn't free. Expect closing costs of 2% to 5% of the loan amount, though many can be rolled in.
Owner-Occupied Only
FHA refinances require the home be your primary residence. Investment properties and second homes don't qualify.
Loan Limits Cap How Much You Can Refinance
FHA loan limits are county-based. High-cost areas have higher limits, but jumbo borrowers will need a different program.
Frequently Asked Questions
An FHA refinance replaces your current mortgage with a new loan that is backed by the Federal Housing Administration. This gives homeowners a way to lower their monthly payments, change the terms of their loan, or get access to their home equity. Continue Reading...
A standard FHA refinance lets you switch from a different mortgage type (like a conventional mortgage loan) to an FHA loan, requiring full documentation and underwriting. An FHA streamline refinance is only for existing FHA loans and lives up to its name — less paperwork, often no new appraisal, and minimal income verification.
An FHA loan can offer lower credit score requirements, potentially smaller down payments, competitive interest rates, and flexible debt-to-income ratios. These make FHA loans potentially more accessible to home buyers when conventional loans aren’t an option.
It’s important to remember that most FHA loans require you to pay mortgage insurance premiums (MIPs) in your closing costs and throughout the life of the loan (unlike conventional loans), and loan limits may be lower than with some conventional options.
There are three main choices for FHA refinancing options: Standard rate/term refinance (switch your current mortgage loan to an FHA loan with new terms), streamline refinance (simplified process for existing FHA loans), and cash-out refinance (borrow more than you owe and pocket the difference).
For most FHA refinances, you’ll need to have made at least six monthly payments on your current mortgage and waited at least 210 days since your closing date. For streamline refinances, you’ll also need to show a “net tangible benefit” — like a lower rate or payment — to qualify.