The Quick Read: No. An FHA cash-out refinance cannot go above the county loan limit, even when your current loan is already FHA. Two caps size the new loan: a loan-to-value cap of 80% and the county limit for your home’s unit count. The lower of the two controls. For most homeowners the 80% cap binds first. The county limit starts to bite on higher-value homes in low-limit counties.
What the County Limit Is and What It Applies To
The county limit caps the loan amount, not the home’s value. A home can be worth far more than the limit and still be FHA-eligible. The loan just has to fit under the ceiling.
FHA limits come in tiers:
- The floor. Most counties sit at the lowest limit. It applies where local home prices are modest.
- High-cost areas. Counties with higher prices get higher limits, up to a national ceiling.
- Special-exception areas. Alaska, Guam, Hawaii and the U.S. Virgin Islands have their own higher limits under the National Housing Act. HUD’s FHA Connection background page explains that limits are set by county and describes those special areas.
Limits also rise with unit count. A two-, three- or four-unit owner-occupied home has a higher limit than a one-unit home in the same county. Limits reset each January, so the year that applies depends on when your case number is assigned.
This article does not quote county dollar figures. They change every year and differ by county. Look up yours in the tool covered in the lookup section below.
What Caps an FHA Cash-Out?
Two ceilings size every FHA cash-out loan. The loan must pass both tests.
1. The value cap. An FHA cash-out reaches 80% loan-to-value on a home you have owned and lived in for 12 months before the case number. Any second lien that stays in place counts toward the same 80% test.
2. The county cap. The base loan, plus any subordinate liens, cannot go past the FHA limit for that county and unit count.
HUD set the 80% figure in Mortgagee Letter 2019-11. The same letter says the first mortgage plus subordinate liens cannot exceed the nationwide mortgage limit. Older articles may quote a higher cash-out percentage. That figure is out of date.
Across the wholesale programs Lendmire works with, the practical rule is simple. Run both tests and take the lower result. That number is your maximum base loan. Your cash proceeds are whatever is left after the payoff of the old loan, any liens that must be paid, and closing costs.
Does an Existing FHA Loan Change Anything?
No. Having an FHA loan does not block a cash-out, and it does not waive the tests. The cash-out is a brand-new loan. It is sized under the rules in force when its own case number is assigned. The old loan’s balance, terms and limit year do not carry over.
This is where borrowers get tripped up. An existing FHA loan opens a second path, the Streamline. It is a different product with a different purpose.
| Feature | FHA Streamline | FHA cash-out |
|---|---|---|
| Cash to borrower | None | Yes |
| Appraisal | Not required | Required |
| Value cap | None (no LTV test) | 80% of adjusted value |
| Sized from | Existing loan balance | Value and county limit |
| Credit review | Limited | Full |
The Streamline refinances only your existing FHA loan. It is built around a net tangible benefit, and the mortgage insurance premium continues. An FDIC-hosted FHA Streamline fact sheet confirms the shape: no cash out, no LTV limit, and sizing based on the existing principal balance.
The county limit gets murkier on a Streamline. Some lender guidelines treat a no-appraisal Streamline differently from one done with an appraisal. Those are lender overlays, not a single rule you can count on. If your goal is cash, none of that helps. The Streamline cannot hand you a dollar.
Which Cap Binds First? Three Situations
The table below describes the pattern in words. No dollar figures are used because every county differs.
| Situation | Cap that binds | What it means for you |
|---|---|---|
| Home value is modest next to the county limit | The 80% value cap | The county limit never comes into play |
| High-value home in a low-limit county | The county limit | Loan may land well under 80% of value; some equity stays locked |
| Existing balance already near or above today’s limit | The county limit | A cash-out may not be possible at the old balance |
Scenario one: the 80% cap binds. Picture a homeowner in a mid-priced county. The 80% test produces a base loan comfortably below the county limit. The county cap is never the issue. This is the most common case.
Scenario two: the county cap binds. Say a home has risen sharply in value in a county that sits at or near the floor. Eighty percent of the value would be above the county limit. The lender has to cut the loan down to the limit. The borrower ends up borrowing well under 80% of value. Part of the equity stays out of reach with FHA.
Scenario three: the old loan is above today’s limit. This happens when the limit fell, or when the loan was modified. FHA does not size a cash-out off the old loan. It uses today’s limit and the 80% cap. HUD text on this exact case is thin, so treat this as a likely outcome and have your lender confirm it against the current handbook.
What Counts Toward the Cap
Four items trip up borrowers more than the headline numbers do.
Second liens and HELOCs. A subordinate lien that stays in place counts toward the combined caps. It uses up room that the new first mortgage would otherwise have. Paying one off with the cash-out, or paying it down first, frees room.
The financed upfront premium. FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, and borrowers usually finance it. The handbook’s limit test is generally applied to the base loan before that financed premium. The total loan can then rise by the premium amount. Have your lender confirm how it treats this on your file, because older reproductions of the handbook text differ.
Annual mortgage insurance. The annual premium runs between 0.15% and 0.75% of the balance, depending on term, loan amount and LTV. On a thirty-year loan above 90% LTV it lasts for the term. At or below 90% it ends after eleven years. A cash-out at 80% LTV falls in the lower-LTV group, which affects how long the premium runs. That is a program fact, not a price quote. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Unit count. A duplex, triplex or fourplex that you live in has a higher county limit than a single-family home. Occupancy still has to be your principal residence. Cash-out is a principal-residence product, so a second home does not fit this program, and occupancy sets the leverage on anything else.
“Exceeding the Limit” Usually Means Jumbo
Search results often mix up two ideas. People ask how to exceed the FHA limit when what they want is a bigger loan. Outside the special-exception areas, FHA has no product above the ceiling. There is no jumbo FHA loan.
If your number is over the cap, you are not asking for an FHA exception. You are asking whether another loan type fits. That might be a conventional loan, which has its own limits set by the FHFA. The FHFA’s conforming loan limit announcement is the base for the FHA ceiling, which is set as a percentage of the national conforming limit. Above the conforming limit, a jumbo loan is the next step. Jumbo guidelines are set by each lender and differ from FHA’s.
If Your Number Is Over the Cap: Options Compared
| Option | Cash out | Appraisal | County limit applies |
|---|---|---|---|
| FHA cash-out | Yes | Yes | Yes |
| FHA Streamline | No | No | Sizing from existing balance |
| FHA rate-and-term | No | Yes | Yes |
| Conventional cash-out | Yes | Yes | Conforming limit applies |
| Jumbo cash-out | Yes | Yes | Set by lender guidelines |
Each path has a trade-off.
- Take less cash. Lower the requested amount until the loan fits under both caps. The simplest fix, but it means less money.
- Pay down or pay off a lien. Clearing a second lien frees room under the combined cap.
- Switch to a Streamline. Works if you want a lower payment or a different term and do not need cash. It only touches the existing FHA balance.
- FHA rate-and-term. With an appraisal, it reaches 97.75% on a principal residence occupied for the previous twelve months. It pays off the old loan without cash out.
- Go conventional or jumbo. These can reach higher loan amounts. Credit, ratio and reserve rules differ from FHA, and mortgage insurance works differently. The CFPB’s FHA loan page notes that FHA is not always a more affordable choice and recommends comparing quotes.
Lendmire’s FHA cash-out refinance program page lays out how the product works from the borrower’s side. Lendmire’s piece Can an FHA Cash-Out Refinance Exceed the County Loan Limit? covers the same cap from a different angle.
Other Eligibility Points That Can Stop a Cash-Out
The caps are not the only gate. Cash-out refinances get a full file review.
- Ownership and occupancy. The home must be owned and occupied for 12 months before the case number.
- Payment history. Payments on all mortgages must be current. A recent late payment can disqualify the file. Borrowers who completed forbearance need a run of on-time payments afterward. Confirm the exact count against the current handbook.
- Credit and ratios. The program starts at a 580 decision score on the wholesale side. HUD allows lower scores on some files. The base ratio pair is 31/43 for housing and total debt, and documented compensating factors can reach 40/50 at the top tier. The automated finding governs most files.
- Credit events. HUD’s waiting periods apply. That is two years from a chapter 7 discharge and three years from a foreclosure. These are HUD rules, not a promise from any lender.
- Special-case exemptions. Hawaiian Homelands (Section 247) loans are outside the 80% change in the 2019 letter.
Each item is subject to lender guidelines and a full file review. Nothing here is a commitment to lend.
How to Look Up Your Limit and the Right Year
1. Find the tool. Use HUD’s FHA mortgage limits lookup. The CFPB advises setting the limit type to “FHA Forward.”
2. Pick the year by case number. Limits follow the date a case number is assigned. A refinance started before a January reset can face a different limit than one started after.
3. Enter your county and unit count. Check the one-unit figure first, then the figure for your actual unit count.
4. Compare that limit to 80% of your home’s value. Use a recent appraised value or an honest estimate. Whichever is lower is the cap.
5. Subtract liens that stay. Any second mortgage or HELOC you keep comes off the room.
6. Ignore stale pages. Many pages quote old-year limits. Check the year on any chart you rely on.
HUD publishes the rulebook in Handbook 4000.1. A mortgagee letter can change a handbook rule, so lenders check both.
What to Ask Your Lender
- What is the county limit for my county and unit count under the limit year that applies to my case number?
- Is 80% of the appraised value lower or higher than that limit?
- Do my second liens stay, and how much room do they use?
- Is the upfront premium financed on top of the base loan, and does the limit test count it?
- Would a Streamline, rate-and-term or conventional loan fit my goal better?
Key Terms Defined
Adjusted value. The appraised value of the home, adjusted under FHA rules, that the loan-to-value cap is measured against.
Base loan amount. The loan before the financed upfront mortgage insurance premium is added.
Combined loan-to-value (CLTV). The first mortgage plus any second liens, divided by the home’s adjusted value.
County loan limit. The most FHA will insure on a home in a given county, set by unit count.
Net tangible benefit. A clear, measurable gain a borrower must get from an FHA Streamline, such as a lower payment or a more stable loan term.
Upfront mortgage insurance premium (UFMIP). A one-time FHA premium of 1.75% of the base loan, usually financed into the balance.
Frequently Asked Questions
Can I take cash out on an FHA loan if my home is worth far more than the county limit?
Yes, but only up to the cap. The loan amount has to fit under the county limit and under 80% of value. In a low-limit county with a high-value home, the limit binds first. You borrow less than 80% of value, and some equity stays locked.
Does the FHA Streamline let me take cash out?
No. The Streamline allows no cash back. It refinances your existing FHA loan, with no appraisal and a limited credit review. It also requires a net tangible benefit. If you want cash, you need a full cash-out refinance with an appraisal.
Is there a jumbo FHA loan?
No. FHA does not insure loans above its ceiling, except in the special-exception areas with their own higher limits. If you need a bigger loan, look at conventional or jumbo options, each with its own guidelines.
Do my second liens count toward the limit?
Yes. A second lien or HELOC that stays in place counts toward the combined caps. It reduces the room for the new first mortgage. Paying it off or down can free up room.
Which year’s limit applies to my refinance?
The one in force when your case number is assigned. Limits reset each January. A refinance started just before or after the reset can face different limits.
Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Another Lendmire article, how the upfront premium cuts an FHA cash-out at the county limit, shows how the financed premium fits into the cap.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HUD FHA Connection mortgage limits background
2. HUD Mortgagee Letter 2019-11
3. FDIC-hosted FHA Streamline fact sheet
4. FHFA conforming loan limit announcement
6. HUD FHA mortgage limits lookup
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Should a Veteran Refinance an FHA Loan Into a VA Cash-Out? · How to Get an FHA Cash-Out After a Quitclaim From a Parent · Does an FHA Cash-Out Refund Upfront MIP on Your Existing FHA Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.