The Quick Read: Pulling a listing does not change the equity cap. An FHA cash-out refinance reaches up to 80% of your home’s adjusted value, with or without a withdrawn listing. That 80% limit covers every lien combined, so at least 20% equity stays in the home. What a recent listing can change is the lender’s questions about intent and any waiting period the lender sets on its own. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
What Is an FHA Cash-Out Refinance?
An FHA cash-out refinance replaces your current mortgage with a new, larger FHA-insured loan. You keep the difference between the new loan and what you owed, minus costs. It is only for a home you live in as your principal residence.
FHA cash-out estimate
Seeded with an example value, a balance to match, and a round cash request; change any field.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the FHA cap on a principal residence with the upfront premium financed, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
An illustration, not a Loan Estimate, an approval, a quote, or a commitment to lend. The rate shown is the weekly Freddie Mac thirty-year conventional benchmark, used as a market reference; an FHA cash-out is priced by the lender at lock, and this is not an FHA cash-out refinance quote. HUD’s cap limits the base loan; the upfront premium is financed on top of the capped base loan; the monthly premium for the first year follows the snapshot’s schedule. Cash available means the base loan the cap permits less the balances retired, before closing costs, which this calculator leaves out. The line figure applies the line program’s combined loan-to-value ceiling to the same value and balance. Taxes and insurance are estimates you can edit. Licensed in sixteen states for consumer mortgages.
You may be asking because your home sat on the market, the sale never happened, and you decided to stay. That is common. The equity you hoped to cash out through a sale can sometimes be reached through a refinance instead. This article covers the specific question of how much equity you can reach and how a recent listing fits in.
Lendmire is a mortgage broker, not a lender. It arranges these loans through wholesale lenders, and the lenders review and approve the file.
Key Terms Defined
Adjusted value. The appraised value after FHA’s adjustments. The 80% test runs against this number, not your list price.
LTV (loan-to-value). Your first mortgage balance divided by the home’s value, shown as a percentage.
CLTV (combined loan-to-value). The same math, but it adds every other lien, such as a second mortgage or a home equity line.
Equity. What your home is worth minus what you owe against it.
Case number. The FHA identifier a lender assigns to your file. Several FHA clocks count back from this date, not from closing.
Withdrawn listing. A listing you or your agent pulled before the home sold. It is different from an expired listing, though lenders often treat both as “taken off the market.”
How Much Equity Does FHA Cash-Out Allow?
The answer is 80% of adjusted value, applied to both LTV and CLTV. HUD Mortgagee Letter 2019-11 cut the cash-out limit from 85% to 80% for case numbers assigned on or after September 1, 2019. HUD’s announcement of the change said the cut aligned FHA with the maximum cash-out LTV that Fannie Mae and Freddie Mac allow. It also noted FHA had earlier lowered the cap from 95% to 85% in 2009. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Some older lender sheets and web pages still show 85%. Ignore them.
Here is the part that trips people up. The 80% is a ceiling on all debt against the home. It is not the cash you receive. Your payoff, any second lien, and any costs rolled into the loan all come out of that ceiling first. What remains is your cash.
No HUD rule lowers this cap because your home was listed and then pulled. The cap is the same.
How the Loan Is Underwritten, Step by Step
Here is how a file moves, in the order the pieces matter.
1. Confirm the listing is off the market. Cancel or withdraw the listing agreement in writing and keep the paperwork. A lender may ask for proof. Whether a “withdrawn” status in the listing database is enough varies by lender.
2. Check the 12-month clock. Across the wholesale programs that Lendmire places FHA files with, cash-out reaches 80% LTV only on a home you have owned and occupied for 12 months before the case number is assigned. The clock runs back from the case number, not from closing.
3. Check recent payment history. Lenders want a clean, recent record on your current mortgage. The exact lookback varies, so confirm it with your loan officer early.
4. Order the appraisal. The appraisal drives the adjusted value, and the adjusted value drives everything else.
5. Compute the ceiling. Take 80% of adjusted value. That is the most all liens can total.
6. Compare with the county limit. FHA loan limits are set by county and change every year, so county loan limits apply. The lower of the 80% ceiling and the county limit controls.
7. Underwrite credit and income. This is full underwriting. The base ratio pair is 31/43 (housing to total debt, as a share of income) with no compensating factors. Documented compensating factors can raise it to as much as 40/50 for the strongest files, and the automated finding governs most files.
8. Close, then wait out rescission. A principal-residence refinance carries a three-business-day cancellation window, covered below.
Lenders work from the refinance sections of HUD’s handbook for FHA loans, which is posted on hud.gov.
Does a Withdrawn Listing Change the Equity Limit?
No. It changes the questions you get asked.
HUD’s published rules do not set a delisting waiting period for FHA cash-out. Individual lenders sometimes do. Some ask for a short gap after the listing ends. Others want a longer one. The length is lender-specific, so do not treat any number you read online as a rule.
Why would a lender care? Because FHA cash-out is for a home you occupy as a principal residence. A listing signals you may have planned to leave. An underwriter wants to be satisfied you are staying. Expect to document that.
For contrast, conventional loans have a clear rule. Fannie Mae’s Selling Guide says a property that was listed for sale must be taken off the market on or before the disbursement date of the new loan. That is a conventional rule, not an FHA rule. FHA lenders often borrow similar caution as their own overlay.
A practical way to handle it: ask the lender early whether any listing-related wait is HUD’s rule or its own. That one question saves a lot of confusion.
What Does the Math Look Like at Different Equity Levels?
The cash you walk away with depends on value, balance, and costs. Here is how three homeowners might compare. These are modeled assumptions, expressed as percentages of value, not market data.
| Scenario | Current balance | Ceiling (80%) | Cash outlook |
|---|---|---|---|
| Low equity | About 78% of value | 80% of value | Almost nothing left after costs |
| Mid equity | About 60% of value | 80% of value | A moderate amount after costs |
| High equity | About 35% of value | 80% of value | Largest cash, but county limit may bind |
In the low-equity case, the ceiling barely clears your payoff. Closing costs and the financed upfront mortgage insurance premium (1.75% of the base loan) can eat the gap entirely. The refinance may not produce usable cash.
In the mid-equity case, the gap between payoff and ceiling is real, but costs still shave it.
In the high-equity case, the 80% ceiling is generous, yet the county loan limit may cut it first. That is why the lower of the two controls.
Here is the sequence to run yourself. Start with adjusted value. Take 80%. Subtract your payoff, any second lien, and the costs financed into the loan. What is left is your cash. Your loan officer can run it on real numbers.
Why Appraisal Value Matters After a Failed Sale
Your list price is not your value. The appraiser sets that, and the 80% test uses it.
A home that did not sell at its asking price may appraise lower than you hoped. Sometimes that is the reason it did not sell. If the appraisal comes in under the list price, your ceiling drops dollar for dollar, and your cash shrinks with it. A weak appraisal can leave little or no cash.
Take a hard look at the price you listed at. If it sat for a long time without offers, assume the appraisal may land below it. Plan the refinance around a conservative value.
Costs from the failed sale also matter. Repairs you made, concessions you offered, and carrying costs you absorbed all reduce what you actually net, even though they are not part of the loan math.
Where the General Rule Breaks
Several situations change the answer.
- Listing still active. If the home is on the market at application or funding, expect a lender to require removal first. Some will not take the application at all.
- Under 12 months of ownership or occupancy. Standard cash-out is not available. A rate-and-term refinance has different tests, and across the programs I work with it can reach 97.75% on a principal residence occupied for the previous twelve months. That product does not pay you cash.
- Second homes and rentals. Standard FHA cash-out is for owner-occupied principal residences only. Occupancy decides the leverage.
- Inherited property that was rented out. The 12-month occupancy period still has to be met before cash-out. Confirm the details against the handbook.
- Free and clear homes. A home with no mortgage can be eligible for cash-out. The same 80% ceiling applies.
- Second liens. Any second mortgage counts against the same 80%.
- FHA Streamline. This is not a cash-out workaround. The FDIC’s summary notes it is for existing FHA loans and allows no cash to be taken. It refinances without an appraisal and with a limited credit review, but you leave with no cash.
- Hawaiian Homelands loans. Section 247 mortgages are excluded from the 80% cut.
How Cash-Out Compares With the Alternatives
| Option | What it does | Best fit |
|---|---|---|
| FHA cash-out | New first loan, up to 80% LTV | Owner-occupant needing cash, wants one loan |
| FHA Streamline | Refinances FHA loan, no cash | Existing FHA borrower lowering cost or term |
| Conventional cash-out | New first loan, listing must be off market | Stronger credit and equity |
| HELOC | Second lien on top of current loan | Keeping the current first mortgage |
| Relisting | Sell the home | Still wanting to move |
A HELOC can be the better fit when your current first mortgage is one you want to keep. A cash-out replaces that mortgage, so the new loan’s terms apply to the whole balance. Think about what you are giving up before you swap.
What Does This Do to Your Monthly Budget?
A bigger balance means a bigger payment. FHA mortgage insurance also applies. The upfront premium is 1.75% of the base loan, usually financed. 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 loan’s term. At or below 90% LTV it ends after eleven years.
At the 80% ceiling you are below 90% LTV, which is the shorter-premium side of that line. These are program facts, not prices. Your Loan Estimate shows what applies to you. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Refinancing also resets your loan. You trade a mortgage with years of payments behind it for a new one starting over. Weigh that against what you plan to do with the cash.
What About the Three-Day Wait?
Funds do not reach you the day you sign. Under the CFPB’s right of rescission, most refinances on your principal residence give you three business days to cancel after signing. If you cancel, you still owe the original loan.
If you need the cash by a fixed date, plan for this. The right can be waived only for a genuine personal financial emergency, and only through your own written, dated statement. The CFPB explains that pre-printed waiver forms are not allowed.
What Should You Gather Before Applying?
A short checklist helps.
- Written proof the listing is canceled or withdrawn
- Your current mortgage statement and payment history
- Proof you live in the home, such as utility bills and a driver’s license showing the address
- A realistic value estimate, based on the appraisal you expect, not your list price
- A list of any second liens or HELOCs
- Records of any repair or concession costs from the listing period
One honest observation. Borrowers in this spot often wait too long to disclose the listing. Say it up front. Lenders handle this regularly, and early disclosure lets them tell you about any overlay before you pay for an appraisal.
Common Misconceptions
“A withdrawn listing lowers my FHA equity limit.” HUD’s cap is 80% of adjusted value. I found no listing-based reduction.
“FHA has a six-month delisting rule.” Not in HUD’s published rules. Six months is sometimes a lender’s own policy.
“I can borrow 85%.” That ended for case numbers on or after September 1, 2019.
“80% of value is what I’ll receive.” It is a ceiling on total liens, not cash in hand.
“The 12 months counts back from closing.” It counts back from case number assignment.
Frequently Asked Questions
Does FHA make me wait a set time after I withdraw my listing?
HUD’s published rules do not set one, as far as I can find. Individual lenders may, and the length varies. Ask your lender whether any wait is HUD’s rule or its own overlay before you apply.
Is the equity limit the same if my listing expired instead of being withdrawn?
Yes. The 80% cap is tied to adjusted value, not to how the listing ended. A lender may still want proof the home is off the market and that you plan to stay.
Will my old list price be used as my home’s value?
No. The appraiser sets the value, and FHA adjusts it. If the home appraises below your list price, your ceiling and your cash both shrink.
What happens if I relist the home after refinancing?
A cash-out is underwritten on your certification that you will occupy the home as your principal residence. Relisting soon after closing can raise questions about that intent, so talk through your plans with your loan officer before you apply.
Can I get cash with an FHA Streamline?
No. A Streamline refinances an existing FHA loan and allows no cash out. Cash requires the cash-out program.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s FHA loan programs page.
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 Mortgagee Letter 2019-11
2. HUD press release PR 19-114
3. Fannie Mae Selling Guide, cash-out refinance transactions
This article is part of Lendmire’s FHA cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: FHA Cash-Out vs Conventional Cash-Out After a Withdrawn Listing · How Much an FHA Cash-Out Lends on a Condo Without Project Approval · How Much an FHA Cash-Out Lends to Pay Off a Partner or Relative
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.