Refinancing Loan Programs

Here are the refinance programs available depending on the loan type:

For Conventional Loans:

• Cash Out – A refinance to take out the subject property equity

Beyond the basic cash-out option, here are some additional conventional refinance products and features:

Conventional Cash-Out 90 ^[6]This is a specialized cash-out refinance product with specific parameters:

• Max LTV of 89.99% (no mortgage insurance required)
• Min FICO of 680
• Primary residence only
• 1-4 unit SFR, PUDs, and condos eligible
• Only 6-month seasoning required on the first mortgage
• Shorter 120-day EPO policy (vs. standard 180 days)

Adjustable Rate Mortgage (ARM) Options. Conventional ARMs are available on rate/term and cash-out refinances:

• 5/6, 7/6, and 10/6 ARM options
• Minimum FICO of 620
• Max LTV of 95%
• Eligible for Temporary Rate Buydowns

Temporary Rate Buydowns ^[5]On rate & term refinances, borrower-paid buydowns (2-1 or 1-0 options) are available for conventional fixed and ARM products on primary and secondary homes. 

For FHA Loans: No Cash-Out Refinances

• Rate and Term – A no cash-out refinance to adjust an FHA mortgage
• Simple Refinance – A no cash-out refinance of an existing FHA-insured mortgage ^[3]
• Streamline Refinance – A streamlined refinance of an existing FHA-insured mortgage

FHA Cash-Out Refinance

Allows borrowers to pull equity out of the property. For cash-out refinances, the first lien mortgage being paid off must meet specific seasoning requirements: a minimum of 6 payments made on the loan AND 210 days must elapse from the first payment date on the loan being paid off to the first payment date of the new loan.

• Cash-Out Refinance – A refinance where proceeds are used to withdraw equity from the property
• 203(k) Rehabilitation Mortgage Insurance Program – For refinances to finance rehabilitation and repair of the property.

Special Considerations:

• Non-owner occupied properties and HUD-approved secondary residences are only eligible for Streamline Refinancing into a fixed rate mortgage.
• At least one borrower on the refinancing mortgage must hold title to the property prior to case number assignment.

Streamline Refinance requirements and benefits

An FHA Streamline Refinance is a special refinance program that allows borrowers to refinance their existing FHA loan into a new FHA mortgage without requiring an appraisal and, in most cases, without reviewing the borrower's income or credit profile.

Key Benefits:

• No appraisal required – The loan-to-value is determined using the original property value from the existing FHA loan rather than a current appraisal.
• Streamlined underwriting – Loans are manually underwritten without running the Automated Underwriting System (AUS)
• Lower documentation burden – Depending on the type, income and credit review may not be required
• Financial benefit required – Every Streamline must provide a net tangible benefit to the borrower, measured through a reduction in the combined rate, a change from ARM to fixed rate, and/or a reduced term

Two Types of Streamlines:

Non-Credit Qualifying – All borrowers from the existing mortgage remain on the new loan. No income or credit review is required; only mortgage payment history on the subject loan is reviewed.

Credit Qualifying – When borrowers are removed from the existing mortgage (except in cases of divorce, legal separation, or death), a full credit and income analysis is required for the remaining borrowers.

Important Requirements:

• Mortgage seasoning – At least 6 payments must have been made on the existing FHA loan, and at least 6 full months must have passed since the first payment due date
• Maximum amortization period – Limited to the lesser of the remaining loan term plus 12 years, or 30 years
• Occupancy documentation – For primary residences, evidence that at least one borrower currently occupies the property is required
• Subordinate financing – Any existing subordinate financing must be resubordinated to the new mortgage

Non-streamlined Refinance – Requires a new appraisal and allows financing of principal, interest balance, and reasonable closing costs.

For VA Loans:

• VA IRRRL (Interest Rate Reduction Refinance Loan) – A refinance to adjust a VA mortgage

For VA loans, there are three main refinance programs available:

VA Interest Rate Reduction Refinance Loan (IRRRL) [6626f957-dcb9-4a21-8e4e-6d09c3f20511:1:2026-23-02-165209].
This is a refinance loan made to refinance an existing VA guaranteed loan, generally at a lower interest rate. IRRRLs are VA-to-VA only transactions and require a VA mortgage lien on title.

VA Type I Cash-Out Refinance. A refinance loan where the loan amount (including the VA funding fee) does not exceed the total final adjusted payoff amount of the loan being refinanced. Type I cash-outs can be VA-to-VA or Non-VA to VA transactions (such as Conventional to VA, FHA to VA, etc.). A lien on title is required but does not have to be a mortgage lien.

VA Type II Cash-Out Refinance. A refinance loan where the loan amount (including the VA funding fee) exceeds the total final adjusted payoff amount of the loan being refinanced. Like Type I, this can be VA-to-VA or Non-VA to VA. A lien on title is required but does not have to be a mortgage lien.

All VA cash-out refinances require a Net Tangible Benefit (NTB) to be demonstrated, which can include interest rate reduction, lower P&I payments, refinancing an ARM to fixed, shorter amortization, eliminating PMI, increased residual income, refinancing interim construction loans, or keeping the loan amount at or below 90% of the home's reasonable value.

For USDA Loans:

For USDA loans, there is one primary refinance program available:

Non-Streamlined Refinance. This refinance option requires a new appraisal and allows financing of the principal and interest balance, plus reasonable closing costs.

Requirements for All USDA Refinance Options:

• Only loans financed or guaranteed by USDA are eligible
• Existing loan must have closed at least 180 days prior to submission to the Agency
• Fixed interest rate at or below the current interest rate of the loan being refinanced
• Borrower must meet applicable adjusted annual household income
• No cash out from collateral equity—only reimbursement of borrower prepaid eligible closing costs and/or refund from escrow overage

Special Consideration for Direct Loans: If you're refinancing a USDA Section 502 Direct Loan, there are additional considerations regarding subsidy recapture. Direct loan borrowers can refinance or defer the amount of subsidy recapture due. Borrowers choosing to refinance subsidy recapture may be eligible for a discount on the amount owed.

USDA refinance eligibility requirements and income limits

Here are the USDA refinance eligibility requirements and income limits:

Income Limits: Income of all household members 18 years of age and older cannot exceed USDA Guidelines. ^[11] The specific income limits vary by state and county. You can find the applicable income limits for your area at the public website: http://eligibility.sc.egov.usda.gov/eligibility/

General Eligibility Requirements:

• Only loans financed or guaranteed by USDA are eligible ^[2]
• Existing loan must have closed at least 180 days prior to submission to the Agency
• Fixed interest rate at or below the current interest rate of the loan being refinanced
• Borrower must meet applicable adjusted annual household income

Borrower Eligibility:

• U.S. citizens and permanent resident aliens not able to secure credit on reasonable terms without USDA Guarantee
• All credit documents must be within 120 days of the Note date

Property Requirements:

• Restricted to non-urban areas
• Owner occupied, single family only

For more information about each of these Refinancing Programs, Requirements, eligibilities, etc. please Contact Us.