Current FHA cash-out guidelines, updated from one source.
Read the block as HUD’s rulebook with the Texas conditions attached. The base loan stops at the cap and the state counts the premium inside it; the home must have been the borrower’s residence for the stated months; the premiums are fixed shares; the score floor and ratio tiers are listed. The premium table follows.
Of the adjusted value on a principal residence; 80% combined with any lien that stays
Two ceilings govern the leverage: 80% on the new first mortgage and 80% on all liens combined, both measured on the adjusted value. The rate-and-term refinance, which returns no cash, reaches 97.75%; the cash-out gives up that reach in exchange for the proceeds.
Owned and occupied as the principal residence before the case number is assigned
twelve months is the occupancy clock, measured to the case number date rather than the closing date, with inheritance as the single exception. HUD pairs it with a payment-history rule: no payment on the property in the prior year made outside the month it was due.
Plus an annual premium, charged monthly, for eleven years at cash-out leverage
Expect two premiums. The first is 1.75% of the base loan, added to the balance at closing; the second is 0.50% of the balance each year on a standard thirty-year loan at this leverage, divided into the monthly payment and ending after eleven years. A larger base loan pays the higher annual rate shown in the table.
Ratios of 31/43 by reference, higher with compensating factors
The decision score is the lowest of the borrowers’ middle scores: 500 is HUD’s floor, 580 the full-financing line, 580 the wholesale starting point. Reference ratios of 31/43 rise to 40/50 with compensating factors such as verified reserves or residual income.
| Base loan | Leverage | Annual premium | Duration |
|---|---|---|---|
| Standard base loan amounts | at or below 90% LTV — the cash-out band | 0.50% | 11 years |
| Standard base loan amounts | above 90% to 95% LTV — purchase and rate-and-term leverage, not cash-out | 0.50% | mortgage term |
| Standard base loan amounts | above 95% LTV — purchase and rate-and-term leverage, not cash-out | 0.55% | mortgage term |
| Larger base loan amounts | at or below 90% LTV — the cash-out band | 0.70% | 11 years |
| Larger base loan amounts | above 90% to 95% LTV — purchase and rate-and-term leverage, not cash-out | 0.70% | mortgage term |
| Larger base loan amounts | above 95% LTV — purchase and rate-and-term leverage, not cash-out | 0.75% | mortgage term |
The line-of-credit alternative: on a primary residence Lendmire’s HELOC program reaches 90% combined loan-to-value behind the existing first mortgage, with no FHA premium attached. For a stronger credit profile the conventional cash-out matches this leverage with no premium at it and one wholesale lane goes higher; eligible veterans can reach the full value, funding fee included, through VA cash-out. Every route is priced on the same numbers before anything is recommended.
FHA cash-out snapshot as of October 1, 2026 · base loan sized on the appraised value, upfront premium financed above it · FHA county mortgage limits apply, confirmed by a Lendmire loan officer and never printed here · taking cash out raises the balance and may extend the payoff · Lendmire is a broker, never the lender.
Informational only. Nothing on this page is a commitment to lend, an offer of credit, an approval, or a quote. The parameters shown are HUD Handbook 4000.1 guidelines and wholesale lender overlays as of the date shown; they change without notice and apply only after full underwriting, including an FHA appraisal. The calculator’s rate is a published survey average, not a quote. Lendmire LLC, NMLS #2371349, is a mortgage broker licensed in sixteen states for consumer mortgages and is never the lender. This is not legal or tax advice.
What an FHA cash-out refinance is — and how the file is qualified.
Four cards, four decisions: what the new insured loan pays and what it leaves as cash; whether the Dallas home clears HUD’s year-of-occupancy rule and its payment-history rule; what the premiums add; and whether the conventional program or a line would reach the same cash for less.
For the program overview, see Lendmire’s FHA cash-out refinance program, or the statewide guide at FHA Cash-Out Refinance in Texas; the rules are HUD’s, in Handbook 4000.1.
One new FHA loan, cash at closing
An FHA cash-out is a brand-new insured first mortgage. The settlement agent pays off your current first lien, pays off any second lien that is not being resubordinated, pays the closing costs, and sends you what remains once the rescission period has run. The upfront premium is added to the balance at closing, which is why the total loan lands a little above HUD’s cap.
The occupancy rule and the payment history
To be eligible, at least one borrower must have owned the home and lived in it as a principal residence for the twelve months before the case number is assigned, and every mortgage payment on the property in that year must have been made within the month it was due. Inherit the home and live in it, and the twelve-month wait is waived; the payment-history rule never is.
Mortgage insurance, upfront and monthly
Two premiums, two timings: one share of the base loan paid once at closing and almost always financed, and one share of the balance paid monthly for eleven years at cash-out leverage. The rate depends on the leverage band and the size of the base loan, not on the score, and the table beneath the snapshot lists every band for a Dallas file.
FHA cash-out or the alternatives
Run the comparison before choosing. For a Dallas owner with a solid score, the conventional cash-out tends to cost less over the life of the loan; for an owner with a thinner profile, FHA is the program that accepts the file. The line of credit wins when the current first mortgage is worth keeping and the sum is modest or arrives in stages.
The order matters. HUD caps the base loan before the premium is added, so the financed premium can push the total above the cap while the base loan stays under it; the cash is measured on the base loan, never on the total. Ask for less and the loan shrinks; ask for more and the calculator reports the ceiling.
Where Dallas’ equity sits — and how FHA cash-out fits.
Here is Dallas by the numbers the Census Bureau publishes: how many households own, what the typical home is worth, and what households earn. An FHA cash-out is written against those numbers, because they set the scale of the equity and of the payment the premium rides on.
These are context figures, not underwriting inputs. A higher median value puts more equity behind the cap; a higher balance against that value leaves less of it reachable. HUD’s percentages are fixed; the dollars they release follow the market.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Dallas neighborhoods, distinct FHA files.
Sort Dallas’ neighborhoods by what an FHA underwriter asks about them: how long the owner has lived there, whether the project or the property type is eligible, and what the appraiser will find when the home is inspected against HUD’s standards.
Condominiums in approved projects
Attached housing makes up much of Dallas, and an FHA cash-out on a unit begins with the building: HUD must have approved the project, or the unit must clear single-unit approval, before anyone talks about value. Older associations with an approval on file need no further project review; new or investor-heavy projects need the review first. Median household income in Dallas sits near $70,518 on the latest Census estimate.
Long-held close-in homes
A close-in Dallas house with years of occupancy behind it clears HUD’s twelve-month rule without effort and carries a small balance against a grown value; the one item to prepare for is the appraisal’s inspection against HUD’s minimum property requirements. Roughly 226,615 Dallas households own their homes on the latest Census estimate — 42% of all households, the pool an FHA cash-out refinance draws on.
Homes bought with FHA years ago
A home bought on FHA terms in Dallas and held for years makes the cleanest FHA cash-out file: the occupancy record is long, the payment history is on file, and the only open question at the review is whether the owner now qualifies conventionally and could drop the premium. Dallas counts a population near 1.31M within the Dallas-Fort Worth-Arlington, TX area.
Newer infill and recent purchases
A Dallas home bought in the last few years still carries most of its purchase balance, and the cash under the cap can be small even after the occupancy year passes; a home owned under a year is also valued at the lower of the appraisal and the price paid plus improvements. The median owner-occupied home value in Dallas runs near $320,700 on the latest Census estimate.
High-value homes near the limit
In the pricier parts of Dallas the base loan can approach the FHA county mortgage limit, which stops the loan before the leverage does, and a larger base loan also pays the higher annual premium tier. A file above the limit moves to the conventional or jumbo program. About 58% of Dallas’ households rent — roughly 307,300 renter households on the latest Census estimate.
Two- to four-unit homes, owner-occupied
The older duplexes and small multi-unit buildings of Dallas qualify for an FHA cash-out when the owner lives in one unit: the cap is the same as for a house, the other units’ rent counts under HUD’s rules, and the appraisal carries a rent schedule. On a Dallas home at the median value, an FHA cash-out refinance at the program cap finances up to $257,000 before the financed upfront premium — the existing balance comes off the top, and the rest is the cash available before closing costs.
From the oldest Dallas neighborhood to the newest, the file is judged the same way, with the premium and the occupancy year as constants and the value as the only local variable.
Four ways Dallas homeowners put equity to work with FHA.
Dallas homeowners bring four reasons to an FHA cash-out more than any others, and each one changes a different part of the review: the ratio, the appraisal, the sequence, or the comparison with a line of credit.
Fund a large expense or a reserve
Borrowing to hold a reserve means paying the premium and the interest on money that may sit unused, which is where a line drawn only when needed often wins. For a Dallas owner whose credit fits HUD but not the line program, the FHA cash-out is the instrument that is open, and the review says so plainly.
Leave a loan whose structure no longer fits
A balloon, an adjusting rate, or a lender’s own insurance product can be replaced with one fixed FHA loan whose monthly premium has a known eleven-year span at this leverage, with cash taken at the same time. The review compares the old structure’s cost with the new premium rather than assuming either is cheaper for a Dallas owner.
Consolidate higher-cost debt into one insured payment
Retiring a stack of balances with one insured loan changes two things at once for a Dallas household: the monthly outlay falls, and the ratio HUD measures is computed after the payoffs leave the file. The home now secures what was unsecured, and the balance runs on a new full term, which is the part to weigh before signing.
Renovate or repair the home
The FHA appraisal is of the Dallas house as it is, so the renovation is sized to the equity already built, not to the value the work will create; a repair the appraiser requires may even have to be done before closing. The cash lands in one disbursement after rescission, and the payment is fixed from the start.
Estimate the cash, the premium, and the new payment on a Dallas home before requesting a quote.
Type in a Dallas value, the current balance, and the cash you want; pick a term and the escrows. The calculator answers with the base-loan ceiling, the maximum cash at the cap, the total loan once the upfront premium is financed, the cash at closing before costs, principal and interest, the first-year monthly premium, the full payment, the back-end ratio against HUD’s reference, and the line-of-credit figure on the same value.
Dallas FHA cash-out estimate
A Dallas example to start from. Enter your own figures to see your own ceiling, premium, and payment.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA cash-out refinance quote.
Illustrative starting assumptions: a $320,000 home value near Dallas’ median owner-occupied value, a $176,000 current balance, the FHA cap on a principal residence with the upfront premium financed, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Texas (U.S. Census Bureau). 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 above it; 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. On a Texas homestead the state constitution caps the whole loan, financed premium included, at the FHA figure and adds a waiting period, a prescribed closing location, and a fee cap.
Same equity, three ways to borrow it.
Three routes to equity in a Dallas home, compared on what actually decides the choice: how far each reaches, what credit standard it applies, what happens to the existing first mortgage, and what each adds in insurance or fees.
FHA cash-out, conventional cash-out, or a HELOC.
A new FHA-insured first mortgage replaces the old one, with the upfront premium financed on top and a monthly premium inside the payment for eleven years at this leverage. Leverage runs to HUD’s cap on a principal residence, the credit standard is the most forgiving of the three, and the file is judged on compensating factors as well as the score.
Same leverage, no premium, stricter credit. The conventional file is priced on the score through the agencies’ adjustments, carries no upfront or monthly insurance at the cash-out cap, and serves second homes and rentals, which FHA does not. The trade is a score and a ratio the file must clear without HUD’s compensating-factor tiers. See Lendmire’s conventional cash-out refinance program.
Keep the first mortgage, add a line. For a Dallas owner with a low-cost first lien and a modest or staged need, the line usually reaches the cash for less than any refinance; for an owner whose first mortgage should go, or whose credit fits HUD better than the line program, the FHA cash-out fits. See Lendmire’s home equity line of credit.
Choose FHA when the score, a credit event, or the ratio keeps the file out of the conventional programs and the home has been the principal residence for a year; choose conventional when the file clears its floor, because the premium is avoided; choose the line when the first mortgage should stay and the need is modest or staged. Veterans: see the VA cash-out program.
What to prepare for a Dallas scenario review.
What goes into a Dallas FHA cash-out file, item by item.
A general guide to preparing, not a complete checklist: the selected lender may ask for more, depending on the transaction, the property, the automated finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
A loan officer runs this list on every Dallas FHA cash-out before quoting anything, because each item can move the loan amount, the cost, or the timing.
Use these checks to keep the Dallas file clean and fundable.
Occupancy, premium, value: confirm the first against the deed and the mortgage history, price the second against the conventional alternative, and plan the third conservatively for the Dallas home.
- Know the Texas rules: The homestead cap applies to the whole loan, financed premium included.
- Price the premium: Compare the FHA payment with the premium against the conventional payment without it.
- Confirm the occupancy clock: Every mortgage payment in the prior year within the month due; no non-occupant co-borrower.
Texas homestead rules shape every FHA cash-out
No other state in Lendmire’s footprint adds these conditions to an owner-occupied cash-out, and they govern timing and cost rather than eligibility: the cap counts the premium, the waiting period is fixed, the closing location is prescribed, and the fees are limited. A Texas owner should expect the state’s timeline, and the calculator on this page applies the Texas cap.
The premium rides on the loan and inside the payment
Two premiums insure the loan: the upfront one is stacked on the base loan, so the total borrowed exceeds HUD’s cap by that share, and the annual one is collected with every payment for eleven years at cash-out leverage. Together they are the real cost of the insured route on a Dallas home, and the calculator shows both so the conventional comparison is made on the full figure.
Twelve months owned and occupied, with a clean payment history
Ownership and occupancy are counted together: the home must have been the borrower’s principal residence for the twelve months before the case number, shown by the deed and by records at the address, and every mortgage payment in that year must have been made within the month it was due. A Dallas owner who rented the home out during that year waits.
The rescission period before the money moves
Closing day and funding day are different days. The rescission window runs after signing, cancellation during it carries no penalty, and the lender disburses when it closes: payoffs to the old lenders, cash to the borrower. Build the sequence into the plan for any Dallas purchase or payoff the cash must meet.
Closing costs and the premium come out of the loan
Weigh the costs against the purpose. A Dallas owner after a modest sum may pay more to close an insured refinance than a line of credit would cost to open, and the line carries no premium; a larger sum spreads the same costs over more cash. The loan estimate itemizes everything after application and the closing disclosure finalizes it before signing.
From a Dallas scenario review to cash at closing.
Review, application and case number, appraisal and underwriting, closing and funding: four stages, in that order, and the first one decides whether the other three are worth starting on a Dallas file.
Scenario review
The review settles the shape of a Dallas file: whether the occupancy year and the payment record clear HUD’s test, what the premiums add, whether the conventional route would cost less, and whether a line would reach the same cash more cheaply. The answer is written terms, and the case number waits until the plan holds.
Application and case number
Once the application is filed, the disclosures go out, the credit report is pulled, the case number is assigned, and the finding tells the lender what to verify. The Dallas borrower sees the condition list here: statements, occupancy evidence, payoffs, insurance, and whatever the finding raises.
FHA appraisal and underwriting
Here the figures become final. The appraiser sets the Dallas home’s value and lists any required repairs; the underwriter tests the file against the handbook and the lender’s overlays; each condition is issued, documented, and cleared ahead of the final approval; and the closing disclosure is drawn on the final loan with the premiums inside it.
Closing, rescission, and funding
Sign, wait, receive. The closing disclosure is reviewed and signed, the settlement agent holds the package through the rescission window, and at disbursement the old liens are paid and released and the proceeds are wired to the Dallas owner, who now has one insured loan where there may have been three.
A brokerage built around equity lending.
Lendmire is a mortgage brokerage licensed for consumer lending in sixteen states. On an FHA cash-out that means three things: the file is placed across several wholesale programs rather than one, the conventional cash-out and the line of credit are priced on the same numbers before the insured route is chosen, and the terms are in writing before a case number is requested.
Every route, one review
No owner is steered toward the one product a lender happens to offer. Each route is run on the same value, balance, and cash, each is costed to open and to carry, and the one the numbers favor for the Dallas home is the one recommended. The owner chooses with the figures in hand, not with a pitch.
Placed across wholesale programs
Several wholesale lenders compete for a Dallas FHA file, and their floors and cost tiers differ enough at a given score to matter. Lendmire places the file where it fits best and hands the owner terms from that placement rather than from a single lender’s sheet.
Terms in writing, before any fee
An appraisal fee on a plan that cannot close is money wasted, so the review is done at a realistic value with room beneath it and with the occupancy and payment history confirmed; the terms are written, and only then is the case number requested. If the value comes in low, the Dallas owner already knows what the loan becomes.
Trusted by homeowners & families alike.
Dallas FHA cash-out refinance FAQs
The questions Dallas homeowners ask most about FHA cash-out refinancing, answered in the order they usually come up.
What is an FHA cash-out refinance, and who is it for?
A refinance that pays you and is backed by HUD: new note, new term, a balance that includes the cash and the upfront premium, one payment with the monthly premium inside. Principal residences only, and best suited to the file that needs flexibility on credit.
How much cash can I take out with an FHA refinance?
Cap times adjusted value, minus what you owe, minus the costs: that remainder is the most cash available, and the premium is added afterward. A large balance leaves little even on a valuable home, which is the first thing a Dallas review checks before a case number is requested.
How long do I need to have lived in my home before an FHA cash-out?
One year as the principal residence, counted to the case number date rather than the closing date, with inheritance as the lone exception. A loan seasoned under a year must have been paid on time throughout.
What does FHA mortgage insurance cost on a cash-out, and how long does it last?
Upfront plus monthly, the monthly premium ending after eleven years because a cash-out begins at or below the ninety percent band. Larger base loans carry a higher annual rate; the table beneath the snapshot lists every band and tier.
What credit score do I need for an FHA cash-out refinance?
The program accepts scores the conventional programs refuse, which is why many Dallas owners choose it. The lowest middle score is the decision score, the wholesale floor sits above HUD’s, and reserves, residual income, and payment history are weighed alongside it.
What is different about the FHA appraisal?
A value and a condition report in one. A low value lowers the ceiling and the cash; a condition finding adds repairs before the loan can close. Walk the home for the obvious items before the appraisal is ordered and plan the cash on a conservative value.
Are there restrictions on what I can use the cash for?
No restriction exists. The application records a purpose, the closing disclosure lists the payoffs, and the balance of the proceeds is yours; it is mortgage debt on the home all the same.
What does an FHA cash-out refinance cost to close?
What a purchase costs, less the items a sale involves, plus the payoff statements and the upfront premium. Rolled into the loan they reduce the cash; paid at closing they reduce what you bring to the table instead. The calculator above shows the cash before they are deducted.
Can I take cash out of a duplex or a rental with an FHA loan?
Owner-occupied two- to four-unit homes qualify; investment property and second homes do not. The other units’ rent helps the ratios on the eligible file.
Would a HELOC be better than an FHA cash-out?
Compare the total monthly cost: the FHA payment on the whole refinanced balance, premium included, against the current payment plus a line payment for the same cash. With a low-cost first mortgage the line usually wins on a Dallas home; with a costly or nearly paid-off mortgage, the refinance often does.
From a Dallas scenario review to cash after rescission.
Three questions open a Dallas FHA cash-out: what the home is worth, what is owed, and whether the file fits the conventional program instead. Lendmire answers them, places the file, and writes up the route that fits.
This guide covers Dallas — for the statewide guidelines, markets, and scenarios, see FHA Cash-Out Refinance in Texas, part of Lendmire’s FHA cash-out refinance program.
Nearby markets in Texas: Fort Worth · Austin · Houston · San Antonio · El Paso
Related programs: Cash-Out Refinance · FHA Loans · HELOC