FHA Loan Refinancing

Refinance an FHA loan to unlock better mortgage terms with less hassle — even if your credit isn’t perfect.

Types of FHA refinancing

FHA refinancing lets you reset your mortgage on new terms. Whether you’re coming from a conventional loan or already have an FHA loan, there’s an option designed to fit your needs without jumping through unnecessary hoops.

Refinance to an FHA loan

Converting from a conventional mortgage to an FHA loan might make sense if you have credit challenges or need more flexible qualification standards. Remember that this move typically adds mortgage insurance premium costs to your payment. 

FHA streamline refinance

Already have an FHA loan? An FHA streamline refinance (or FHA-to-FHA refinance) lives up to its name by cutting through red tape. Get better terms with minimal paperwork, often without requiring a new appraisal or extensive income verification.

FHA cash-out refinance

Turn your home’s value into actual cash in your pocket. An FHA cash-out refinance lets you borrow more than you currently owe and pocket the difference. Use it for home improvements, debt consolidation, education expenses — the choice is yours.

Benefits of an FHA mortgage refinance

While conventional lenders might make you jump through endless hoops, FHA refinancing is often easier. With more forgiving qualification requirements and flexible terms, an FHA refinance can be your ticket to better mortgage terms — even if your financial situation isn’t picture-perfect. 

Get a better rate

Lock in a lower interest rate and watch your long-term mortgage costs shrink.

Reduce your payments

Lower your mortgage payments and give your budget some breathing room.

Cash out your home’s value

Transform your home equity into actual cash you can use however you see fit.

Flexible qualifications

Enjoy more relaxed credit score and debt-to-income requirements compared to conventional loans.

How it works

1 Set your refinance goals

Know what you want before diving in. Are you looking to lower your monthly payment, reduce your interest rate, cash out equity, or switch from an adjustable-rate mortgage (ARM) to a fixed rate? Defining your goal now makes choosing the right FHA loan refinance option much clearer.

2 Choose your FHA refinance loan

Select the type of FHA home loan that aligns with your financial situation. Need simpler paperwork? Go streamline. Want cash in hand? Choose cash-out. Coming from a conventional loan? Standard FHA refinance might be your path forward.

3 Verify eligibility

You’ll need to meet FHA refinance requirements for credit score and debt-to-income ratio. The home must be your primary residence, and the mortgage limit be 115% or lower of your area’s median home price. You’ll also need a home appraisal by a HUD-approved appraiser. FHA streamline refinances cut through much of this red tape. If you already have an FHA loan, you might skip the new appraisal and extensive income verification. 

4 Compare rates

Interest rates change daily and vary based on your credit profile. We’ll help you lock in competitive FHA refinance rates that save you money over the life of your loan.

5 Apply for your loan

Submit your refinance application with the necessary documentation — income verification, credit reports, and current mortgage details. AmeriSave makes this step straightforward. Remember, an FHA streamline refinance will likely require less paperwork.  

6 Finalize your FHA refinance

Once approved, we’ll guide you through closing. Your new FHA refinance loan terms kick in, delivering on your refinancing goals — whether that’s lower payments, better interest rates, or cash from your home’s equity landing in your bank account. 

Veron M. | Lawrenceville, GA

The process has been very quick and easy for a first timer like myself. Being able to provide things on-line via chat & email lets me handle things while taking care of other tasks.

Sprak | Charles Town

I cannot imagine an easier experience with anyone else. Everyone is friendly, helpful and simply caring. Love working with them.

Jason S | Elephant Butte, NM

Fantastic. Great company and staff. Professional and quick. The process from beginning to end was painless and speedy. Would recommend with 10 stars.
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Frequently Asked Questions

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.

Who qualifies for a Home Possible® loan?

Borrowers with incomes at or below 80% of the AMI may qualify for a Home Possible® mortgage. You may also qualify if you require a non-occupant co-borrower to help support your loan application.

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