FHA Refinance Programs Comparison Matrix

Criteria	FHASecure	FHA 95% Cash-out Refinance	FHA to FHA Refinance*
Eligible Loan Types	Current conventional fixed-rate or ARM loan. Delinquent conventional ARM loan. Delinquency was caused by a rate reset (recast) or an extenuating circumstance, but does not affect the borrower’s overall capacity to repay the FHA loan. Acceptable loan features include interest only, payment option and negative amortization.	FHA or conventional loan that is seasoned at least 12 months with last 12 payments made within the month due. Otherwise, limited to 85% LTV.	FHA
Ineligible Loan Types	FHA	FHA or conventional loans seasoned less than 12 months. Otherwise limited to 85% LTV.	Conventional
LTV	Standard LTV on FHA first mortgage. In addition to standard rate and term maximum mortgage calculation may include arrearages (PITI) incurred after reset or extenuating circumstance. Current appraised value is used to determine maximum loan amount. No seasoning requirement for purchase money seconds. Equity line in excess of $1000 advanced in last 12 months is not eligible for inclusion (unless documented for repair/renovation of subject property).	Up to 95% LTV on FHA first mortgage that does not exceed $417,000. Otherwise limited to 85% LTV. Standard cash-out maximum mortgage calculation up to 95%. Current appraised value is used in determining maximum loan amount. There are no seasoning requirements for subordinate liens.	Standard LTV on FHA first mortgage. Standard rate and term maximum mortgage calculation. Current appraised value is used in determining maximum loan amount. No seasoning requirement for purchase money seconds. Equity line in excess of $1000 advanced in last 12 months is not eligible for inclusion (unless documented for repairs/renovation of subject property).
CLTV	Unlimited CLTV for new subordinate financing. Unlimited CLTV for re-subordination or modification of existing subordinate financing.	Unlimited CLTV for re-subordination and/or modification of existing subordinate financing. Also applicable for FHA first mortgages limited to 85% LTV.	Standard FHA CLTV ratio on new subordinate financing: the combined 1^st and 2^nd liens do not exceed the applicable FHA LTV and maximum mortgage limit for the area. Unlimited CLTV for re-subordination or modification of existing subordinate financing.

Criteria	FHASecure		FHA 95% Cash-out Refinance	FHA to FHA Refinance*
Underwriting	FHA First Mortgage Borrower is delinquent but mortgage payment history shows that: during the 6 months prior to reset or extenuating circumstance there are no instances of making mortgage payments outside the month due; or during the 12 months prior to reset or extenuating circumstance there are no more than 1×60 late payment or 2×30 late payments; or no more than 1×90 or 3×30 during the 12 months prior to reset or extenuating circumstance provided the LTV on the FHA first does not exceed 90%. Delinquency was caused by rate reset or extenuating circumstance but does not affect borrower’s overall capacity to repay the FHA loan. Borrower delinquent on IO and/or payment option ARMs must demonstrate that they were making their monthly mortgage payments within the month due during the 6 months prior to rate reset. Standard 31/43 ratios may be exceeded with compensating factor(s), except for loans limited to 90% LTV mortgage payment history. Non-occupant co-borrowers may be added.		FHA First Mortgage Borrower must have owned property for 12 months AND if encumbered by a mortgage made payments for the last 12 months within the month due. Otherwise limited to 85% LTV. Standard 31/43 ratios, may be exceeded with compensating factor(s). Non-occupant co-borrowers may not be added for 95% cash-out refinance transactions but are permissible for those limited to 85% LTV.	FHA First Mortgage Borrower must be current and have an acceptable mortgage payment history. Standard 31/43 ratios, may be exceeded with compensating factor(s). Non-occupant co-borrowers may be added.
	Secondary Financing If payments on the second are required, they must be included in the qualifying borrower unless deferred for a period of at least 36 months. Secondary financing must meet the following requirements: No prepayment penalty No balloon payments less than 10 years Payments on FHA 1^st and subordinate liens, plus other housing expenses, cannot exceed borrower’s capacity to repay. Any periodic payments due on the second mortgage are due monthly and are essentially the same in dollar amount.		Secondary Financing If payments on the second are required, they must be included in qualifying the borrower. Secondary financing must meet the following requirements: No prepayment penalty No balloon payments less than 10 years Payments on FHA 1^st and subordinate liens, plus other housing expenses, cannot exceed borrower’s capacity to repay. Any periodic payments due on the second mortgage are due monthly and are essentially the same in dollar amount.	Secondary Financing If payments on the second are required, they must be included in qualifying the borrower. Secondary financing must meet the following requirements: No prepayment penalty No balloon payments less than 10 years Payments on FHA 1^st and subordinate liens, plus other housing expenses, cannot exceed borrower’s capacity to repay. Any periodic payments due on the second mortgage are due monthly and are essentially the same in dollar amount.
FHA Identifier	Conventional not delinquent Conventional delinquent		Conventional not delinquent	FHA to FHA Refinance, use appropriate identifier
New Mortgage	FHA Fixed, 1-year ARM or hybrid ARM		FHA Fixed, 1-year ARM or hybrid ARM	FHA Fixed, 1-year ARM or hybrid ARM
Mortgage Insurance	Delinquent	Current	1.5% UFMIP and .50% Annual Premium	1.5% UFMIP and .50% Annual Premium
	2.25% UFMIP and .55% Annual Premium when LTV > 95%	1.5% UFMIP and .50% Annual Premium

Criteria	FHASecure		FHA 95% Cash-out Refinance	FHA to FHA Refinance*
Expiration	Delinquency and/or > Std FHA CLTV Ratio:	Current and =/< Std FHA CLTV Ratio:	Permanent	Permanent
	Applications on/or before 12/31/08	Permanent
Documentation Requirements	In addition to standard FHA documentation requirements, the following documents are needed for FHASecure: Evidence of the current loan type and reset date such as the current ARM Mortgage Note or Rider, if applicable. Evidence of occurrence of extenuating circumstance(s), if applicable. Explanation letter from borrower for delinquency and/or missed payments. Evidence that the payment history for the 6 months prior to reset had no payments outside the month due (credit report, payment history, etc); OR Evidence that the payment history has no more than 1×60 late payment or 2×30 late payments in the last 12 months (credit report, payment history, etc); OR Evidence that the payment history has no more than 1×90 or 3×30 late payments in the last 12 months. Include evidence of partial forbearance, if applicable. Evidence of terms and conditions of secondary financing, if applicable. MCAW (LT) with comments from the underwriter in the Remarks section to document decision that reset or temporary financial setback caused the loan to become delinquent.		Standard FHA documentation requirements	Standard FHA documentation requirements
Other	All other standard FHA requirements apply		All other standard FHA requirements apply	All other standard FHA requirements apply

Table of contents "Click Here"

FHA Refinance Programs Comparison Matrix

Explore the FHA Refinance Programs Comparison Matrix. Learn the key differences between FHA Streamline, Cash-Out, Rate-and-Term, and 203(k) refinance options.

Compare FHA Refinance Options Side by Side

Know the difference between streamline, cash-out, and rate-and-term refinances.

Check Out Our FHA Refinance

Understanding the FHA Refinance Programs Comparison Matrix

The FHA Refinance Programs Comparison Matrix helps you quickly spot the differences between the FHA’s options. Each program is aimed at different financial goals:

FHA Streamline helps you secure a lower interest rate, the Cash-Out option taps into equity you’ve built, the Rate-and-Term changes the structure of your loan without cash changes, and the 203(k) covers home repairs in the refinance.

By putting the key details side by side, the Matrix becomes a visual guide that tells you which loan might suit you best. FHA refinancing is built to be adaptable, so even homeowners with less-than-perfect credit can still take advantage of the current mortgage market.

Why Opt for FHA When Refinancing?

If you’re considering refinancing, an FHA loan might be the boost you’re after. These FHA-backed loans have relaxed credit-score standards, accept high loan-to-value ratios, and easily accommodate flexible debt-to-income ratios. In contrast, most conventional loans put up steep barriers: sky-high credit scores, hefty equity hurdles, and stricter DTI rules. FHA loans open the door for borrowers who otherwise wouldn’t get the chance.

FHA Streamline Refinance

The Basics

The FHA Streamline Refinance is the most straightforward FHA refi option.
Homeowners already carrying an FHA loan can refocus their mortgage without piles of papers.

Top Perks

No income documents: Forget pay stubs or tax forms.
No home appraisal: The current property value is already known, so it’s unnecessary.
Rapid closings: Many Streamline loans wrap up in about 30 days.
Credit-friendly: There’s technically no fixed minimum score, so lower numbers can still clear hurdles.
Who It’s For: This loan is best for anyone seeking a lower rate or smaller monthly bill with the lightest paperwork.

FHA Cash-Out Refinance

What It Is: The FHA Cash-Out Refinance lets you unlock a chunk of equity, put extra cash in your pocket, and reset your existing mortgage at the same time.
It’s not a home equity loan or a line of credit.
It wipes out your current mortgage and produces a brand-new one with a bigger balance, the difference in cash going to you at the closing table.
Key Benefits: Tap up to 80% of your home value.
FHA lets you take out more cash than many traditional lenders.
Gentle credit rules:Payment spots, collections, or late payments are not as big a deal.
You can use cash for what you want: pay medical bills, renovate your bathroom, or combine several loans into one.
Best For: People who want to use home equity to pay bills, fund home projects, or save money on monthly payments.

FHA Rate-and-Term Refinance

What It Is: This program lets you change your existing FHA loan terms without taking out cash.
You can choose a new fixed or adjustable mortgage with better terms.

Key Benefits

Lower monthly rate: A smaller interest rate cuts your house payment.
Change mortgage type: Move from an adjustable rate to a fixed rate for peace of mind.
Alter loan length: Depending on your plans, you can switch your loan from 30 years to 15 years or vice versa.
Best For: Folks who want to save money or simplify their mortgage while keeping the loan balance the same.

FHA 203(k) Refinance

What It Is: The FHA 203(k) Refinance helps current homeowners who want to fix up their homes by combining their current mortgage and repair costs into a new FHA loan—one loan, one closing, and one payment.

Key Benefits

Finance repairs and upgrades: You can pay for new kitchens, modernized bathrooms, roof repairs, and other big improvements.
Low equity requirement: You only need 3.5% equity to start.
Single mortgage: Your existing mortgage balance and the estimated rehab costs roll into one new loan.

Best Suited For

Homeowners who want to refinance and renovate the property can do so with one FHA loan instead of juggling multiple loans.

Comparing FHA Refinance Programs Comparison Matrix

Each FHA refinance program meets a unique need. The Streamline Refinance is great for lowering monthly payments quickly. A Cash-Out Refinance allows you to take a portion of your home equity in cash. The Rate-and-Term Refinance focuses on getting different loan terms. On the other hand, the 203(k) Refinance is best for anyone planning renovations.

Considering the FHA Refinance Programs Comparison Matrix, Consider These Questions:

Do I Want to Reduce Monthly Payments, Tap Into Equity, or Improve My Home?

The answers will show you the best fit.

How to Choose the Right FHA Refinance Programs Comparison Matrix

Set your goal: Decide if you want a lower monthly payment, cash for a big expense, improved loan terms, or funds for home upgrades.
Check your credit and equity first: Each FHA program has specific credit and equity guidelines.
Speak with your lender. A mortgage professional can help you choose the right FHA refinance program for your situation.
Move quickly in a shifting market: Mortgage rates change daily, and good timing is key.