Access Cash While Refinancing FHA Cash-Out Refinance Explained

Turn Your Home’s Equity into Cash with an FHA Cash-Out Refinance

Need extra cash for home improvements, debt consolidation, or major expenses? A cash-out refinance FHA loan lets you tap into your home’s equity—even with a lower credit score—to secure affordable financing backed by the Federal Housing Administration (FHA).

With flexible credit requirements, competitive rates, and up to 80% loan-to-value (LTV) limits, this refinance option makes it easier for homeowners to get the cash they need.

• Get up to 80% of your home’s value in cash
• Lower credit score requirements (as low as 580)
• Government-backed loan with flexible terms
• Use funds for home renovations, debt consolidation, or emergencies

See how much cash you qualify for today—without impacting your credit score!

What Is an FHA Cash-Out Refinance?

A cash-out refinance FHA loan allows homeowners to replace their existing mortgage with a new FHA loan while withdrawing cash from their home’s equity. Unlike an FHA streamline refinance (which only lowers your rate), an FHA cash-out refinance puts money directly in your pocket—all while maintaining affordable, government-backed loan terms.

How It Works:

1. Refinance your mortgage into a new FHA loan
2. Borrow up to 80% of your home’s appraised value
3. Receive the difference in cash after paying off your current mortgage

Example:

• Home Value: $350,000
• Current Mortgage Balance: $200,000
• Max Loan Amount (80% LTV): $280,000
• Cash Out After Closing Costs: $75,000+

Want to learn more? Check out our FHA Cash-Out Refinance Guide for a full breakdown.

Key Benefits of an FHA Cash-Out Refinance

Wondering if an FHA cash-out refinance is the right move for you? Here’s why homeowners choose this option over other refinancing methods:

Access More Cash with a Higher Loan-to-Value (LTV) Limit

Unlike conventional cash-out refinances, which typically cap borrowing at 80% LTV, FHA loans allow you to borrow up to 80% of your home’s appraised value—making it easier to tap into your equity.

Easier Credit Approval Than Conventional Loans

If your credit score isn’t perfect, you’re in luck—FHA cash-out refinancing is available to borrowers with scores as low as 580, whereas most conventional cash-out loans require 620+.

Competitive Interest Rates

Because FHA loans are government-backed, lenders often offer lower interest rates than traditional cash-out refinance loans—helping you keep monthly payments manageable.

Use Funds for Any Purpose

Your cash-out funds aren’t restricted—you can use them for:

✔ Home renovations or repairs

✔ Debt consolidation (pay off high-interest credit cards)

✔ Medical bills or unexpected expenses

✔ Investing in another property

Government-Backed Security & Stability

Since FHA loans are insured by the Federal Housing Administration, they come with more flexible lending terms and lower risk compared to conventional loans.

How Much Cash Can You Get?

Want to know how much cash you can take out with an FHA refinance? Use our simple formula:

FHA Cash-Out Refinance Calculation Example

• Home Value: $400,000
• Current Mortgage Balance: $250,000
• Max Loan Amount (80% LTV): $320,000
• Cash Out (After Paying Off Mortgage & Fees): $65,000+

Try Our FHA Cash-Out Refinance Calculator Below:

💡 Enter your home value & mortgage balance to get an instant estimate!