Loan Offerings Mortgage Rates References Account About Us You are here: Loan Offerings Cash Out Refinances FHA cash out refinances Tap your home’s equity for the cash you need. GET STARTED Overview Compare Reviews Rates & Fees FAQs About GET STARTED Overview An FHA cash out refinance allows you to tap into the value of your home's equity to get cash for important expenses. With this type of refinancing, you'll replace your current mortgage with a new loan for a higher amount. The difference between the two mortgages is what you'll receive in cash at closing. For example, if you have a mortgage with a loan balance of $200,000, you might be able to get a new FHA loan for $250,000. This would give you $50,000 in cash at closing. You can use the money to pay for home improvements and college educations, or to pay down high-interest debts. FHA cash out refinances require a new loan application and you'll need to meet the requirements to get your refinance approved. Get cash from home equity Consolidate debts Pay for home renovations Pay for college educations How much cash can you get? The amount of cash you might get from a cash out refinance depends on the value of your home’s equity and the loan-to-value ratio of your refinance. Change the default values to personalize your estimate! All fields are required. Value of the Property $ Existing Mortgage $ Calculator assumes your loan-to-value ratio is 80%. This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage. GET MY ESTIMATE You might qualify for $50,000 Ask about our FHA cash out refinance rates At Freedom Mortgage, we want to help you make the most of your home's equity with competitive rates for FHA cash out refinances. Your credit score, finances, current market and other factors can affect the rate we may be able to offer you. We're happy to answer your questions and see if you qualify! Is an FHA cash out refinance right for you? FHA cash out refinancing can provide you with the financial flexibility to reinvest your home's equity in other parts of your life. FHA cash out refinances All qualified homeowners are eligible Maximum loan-to-value ratio often 80% Mortgage insurance required No funding fee Conventional cash out refinances All qualified homeowners are eligible Maximum loan-to-value ratio often 80% Mortgage insurance required with home equity less than 20% No funding fee Learn more VA cash out refinances Only qualified veterans, military personnel, and surviving spouses are eligible Maximum loan-to-value ratio often 90% Minimum credit score often 620 Mortgage insurance not required Most veterans will pay a funding fee of 2.3% to 3.6% of loan amount Learn more What Our Customers Say Check out the reviews from some of our customers. “I truly appreciated my experience with Bryan and the whole Freedom Mortgage processing team. My loan was closed prior to the targeted date and it was a very smooth process. Thanks so much for making my first experience with refinancing an exceptional experience. I would definitely recommend your company to family and friends!!!” Glenn, FL 5/5 stars An exceptional experience Go to Previous slide Go to Next slide FHA cash out refinance requirements In order to be eligible for an FHA cash out refinance, you'll need to have a significant amount of home equity. Lenders will typically measure your home equity using a loan-to-value ratio (LTV). Your application will only be approved if you meet the lender's credit, income, and financial standards. Take a look at the other factors that go into FHA cash out refinancing. New application and documentation You'll need to submit proof of income, tax returns, and other documents that provide your financial history. New home appraisal Your home's fair market value may have changed since you bought it. Lenders typically require a new home appraisal to determine how much home equity you have. Home appraisals can cost around $300. Learn more Loan-to-value ratio The maximum loan-to-value-ratio (LTV) for FHA cash out refinances is often 80%. Your LTV helps lenders decide if you qualify for cash out refinancing and how much cash you may be able to borrow against your home's equity. Learn more New credit check You should expect a credit check as a part of the approval process. Higher credit scores might get you a lower interest rate. Learn more Closing costs FHA cash out refinance closing costs can vary but will always include the Upfront Mortgage Insurance Premium (UFMIIP). You may also need to pay lender fees, mortgage points, or other costs. Learn more Loan disclosures and closing After you apply, you'll also need to sign Disclosures before you close. We'll review your closing steps with you when the time comes so you're prepared. Learn more Frequently Asked Questions Benefits Requirements Substantial equity in your home might mean that an FHA cash out refinance can give you more money in your pocket for big expenses. Some homeowners choose to use their money for home renovations. This can increase the home's value if you decide to resell your home in the future. Other homeowners use the money to pay for college tuition. An FHA cash out refinance can also help you consolidate your debt. If the interest rate on your credit card payment is much higher than your mortgage rate, for example, it can sometimes be beneficial to refinance and use cash from your home’s equity to pay down debts with higher interest rates. Using money from your home’s equity to pay for education, pay down your debt, or invest back in your home can pay off in the long run. Freedom Mortgage Corporation is not a financial advisor. The ideas outlined above are for informational purposes only, are not intended as investment or financial advice, and should not be construed as such. Consult a financial advisor before making important personal financial decisions. The Freedom Mortgage Difference Freedom Mortgage has grown to be the 6th largest mortgage lender in the US. With 30 years of experience helping customers achieve and maintain the dream of homeownership, we are proud today to be the nation’s #1 VA and FHA lender. Beyond originating loans, we also service mortgages for 1.25+ million customers. Our outstanding service includes our Eagle Eye Pledge, to alert customers to opportunities for lower rates and monthly payments. We are dedicated to meeting our customer’s needs for the life of their loan. Contact Us 855-690-5900 Contact our Customer Care team Experiencing financial difficulties? We’re here to help you. 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