FHA refinance: first identify the transaction—then apply the right rules.
FHA does not have one refinance rulebook for every situation. Streamline, Simple, Rate and Term and Cash-Out refinances have different purposes, documentation, appraisal and eligibility requirements.
FHA refinance knowledge tree
Streamline Refinance
Credit-qualifying vs non-credit-qualifying, seasoning, payment history, net tangible benefit and $500 cash limit.
Rate & Term vs Simple
When each applies, appraisal requirements and what debts/costs can be included.
Cash-Out Refinance
Equity withdrawal, title/occupancy requirements, payment history and maximum-mortgage framework.
Seasoning & payment history
Six-payment/210-day Streamline timing and transaction-specific mortgage-history rules.
Second mortgages & subordinate liens
Paying off, retaining or subordinating junior liens and how transaction purpose changes classification.
Adding/removing borrowers
Ownership, liability, assumptions, divorce and when credit qualification becomes necessary.
The four FHA refinance lanes
Cash-Out: equity withdrawal. Rate and Term: no-cash-out refinance of an FHA or non-FHA mortgage used to pay eligible existing liens and transaction costs. Simple: no-cash-out refinance of an existing FHA-insured mortgage with an appraisal. Streamline: FHA-to-FHA refinance with limited underwriting and no appraisal.
Official FHA policy baseline
Primary source: HUD/FHA Single Family Housing Policy Handbook 4000.1, Update 18, revised August 12, 2026. FHA identifies Cash-Out, Rate and Term, Simple and Streamline as refinance types. Section 203(k) rehabilitation refinances remain in Mortgage Navigator's separate future renovation-loan section.