Current FHA cash-out guidelines, updated from one source.
These are HUD’s numbers for a cash-out, served from Lendmire’s guideline source and rewritten on this page whenever the handbook or the wholesale overlays move: how much of the adjusted value the base loan may reach, how long the home must have been owned and occupied, what the two premiums cost, and what the credit profile and the ratios must show. The premium table follows the cards.
Of the adjusted value on a principal residence; 80% combined with any lien that stays
80% of the adjusted value is where HUD stops the base loan, with 80% as the combined ceiling if a second lien is resubordinated. For a home owned less than a year, the adjusted value is the lower of the appraisal and the price paid plus documented improvements; after a year, it is the appraisal.
Owned and occupied as the principal residence before the case number is assigned
HUD counts twelve months of ownership and occupancy as a principal residence before the case number is assigned, and it reads the mortgage history for that year: every payment within the month due. Inherited homes occupied since the inheritance skip the wait; nothing skips the payment test.
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
A 580 decision score clears HUD’s full-financing line, 500 is the absolute floor, and 580 is what the wholesale programs expect. Ratios run 31/43 by reference and up to 40/50 with two compensating factors; accounts paid through the closing come out of the ratio.
| 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.
Guidelines, not an offer. The cap, the occupancy rule, the premium schedule, the credit floors, and the ratio tiers are HUD parameters and wholesale overlays read from Lendmire’s guideline source on the date shown, subject to change without notice and to full underwriting. Payment figures from the calculator are estimates built on a published weekly benchmark rate, not quotes. Lendmire LLC, NMLS #2371349, broker, not lender. Not legal or tax advice.
What an FHA cash-out refinance is — and how the file is qualified.
Here is the program in the order it matters: the loan and the disbursement, the occupancy and payment-history rules, the insurance and its span, and the choice between FHA and its alternatives for a Washington home.
For the program overview, see Lendmire’s FHA cash-out refinance program; the rules are HUD’s, in Handbook 4000.1.
One new FHA loan, cash at closing
Picture the house being refinanced from scratch with HUD standing behind the lender: a base loan sized to the cap, the payoffs and costs taken from it, the upfront premium stacked on top, and the balance of the proceeds wired to you after rescission. Your old payment disappears and one new payment, monthly premium included, takes its place.
The occupancy rule and the payment history
The case number date, not the closing date, is where HUD measures the year, and the year counts occupancy as well as ownership. A Washington home you lived in throughout qualifies; a home you rented out for part of the year does not until a full year of occupancy has passed. A loan seasoned less than a year must show every payment on time, and no non-occupant co-borrower may be added.
Mortgage insurance, upfront and monthly
HUD insures the lender against loss, and the borrower funds the insurance twice: an upfront premium that is a share of the base loan, financed into the balance in nearly every file, and an annual premium charged monthly on the outstanding balance at the rate the schedule sets for the leverage band and the base loan tier. At cash-out leverage the monthly premium runs eleven years and then ends.
FHA cash-out or the alternatives
The honest comparison for a Washington owner is three columns on one page: the FHA payment with the premium, the conventional payment without it, and the current payment plus a line of credit for the same cash. The column with the lowest cost that the credit profile actually qualifies for is the recommendation, and the review produces it.
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 Washington’s equity sits — and how FHA cash-out fits.
HUD’s cap is a percentage, and the Washington market turns it into dollars that differ by county and by town. The figures below are statewide; each market page below has its own.
Statewide figures provide general market context, not an appraisal or an income calculation. Citywide medians sit above some homes and below others; the appraisal and the balance on one house decide what an FHA cash-out on it can do.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Washington’s equity is borrowed with FHA — market by market.
Six Washington markets, six local guides. HUD’s program is the constant; the equity a typical home holds, the condition questions the local stock raises, and the county mortgage limit are the variables.
Seattle
Seattle’s owner base runs near 158,945, about 44% of households; in a metropolitan market of that scale the FHA cash-out is a routine file: a year in the house, HUD’s cap, the premium, the appraisal. Census context: median value near $938,600, median household income near $123,860, population near 754K.
Spokane
Spokane’s owner base runs near 57,325, about 59% of households; in a metropolitan market of that scale the FHA cash-out is a routine file: a year in the house, HUD’s cap, the premium, the appraisal. Census context: median value near $363,500, median household income near $70,064, population near 230K.
Tacoma
Roughly 51,893 Tacoma households own (56% of the total), a good many with the modest scores and small down payments FHA was built for, which is why the insured cash-out carries a steady share of this metropolitan market’s equity lending. Census context: median value near $479,600, median household income near $85,884, population near 223K.
Vancouver
Vancouver’s owner base runs near 41,385, about 51% of households; in a metropolitan market of that scale the FHA cash-out is a routine file: a year in the house, HUD’s cap, the premium, the appraisal. Census context: median value near $462,400, median household income near $81,338, population near 195K.
Bellevue
Bellevue’s owner base runs near 32,234, about 52% of households; in a metropolitan market of that scale the FHA cash-out is a routine file: a year in the house, HUD’s cap, the premium, the appraisal. Census context: median value near $1,340,300, median household income near $165,576, population near 152K.
Kent
Roughly 26,961 Kent households own (57% of the total), a good many with the modest scores and small down payments FHA was built for, which is why the insured cash-out carries a steady share of this metropolitan market’s equity lending. Census context: median value near $587,800, median household income near $92,302, population near 136K.
There are no Washington markets with their own FHA cash-out rules. The cap, the occupancy rule, the payment-history requirement, the premiums, the credit floor, and the ratio tiers are identical everywhere in the state; the one county-level variable is the FHA mortgage limit, which a Lendmire loan officer confirms for each file and this page never quotes.
Four ways Washington homeowners put equity to work with FHA.
Washington 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.
Consolidate higher-cost debt into one insured payment
A consolidation file is the FHA cash-out at its most common: first mortgage, second lien, and unsecured debt paid at the table, one payment with the premium inside it afterward. The ratio is measured on what survives the closing, which is why many Washington files qualify more easily than the credit report suggests, and the home now secures what was unsecured.
Capitalize a business or an investment
Working capital drawn from a Washington home arrives as one disbursement after rescission and is repaid on the mortgage, premium included, regardless of how the venture performs. Underwriting reads the owner’s personal income and credit, not the business plan, and HUD’s standard is often the one a self-employed file clears.
Fund a large expense or a reserve
Tuition, medical bills, a family event, or simply cash on hand: HUD does not restrict the use of the proceeds, and they arrive in one sum after rescission. The review asks one question first, whether a line of credit, which charges interest only on what is drawn and carries no FHA premium, would serve the Washington household for less.
Replace a second lien or a line in repayment
Two liens become one fixed insured payment. The combined balances plus the costs have to fit under the base-loan cap; where they do not, a Washington owner can leave the second lien in place inside the combined ceiling and resubordinate it, or pay part of it down before closing.
Estimate the cash, the premium, and the new payment on a Washington home before requesting a quote.
The calculator follows HUD’s arithmetic for a Washington home: cap times value for the base ceiling, payoff subtracted, cash request tested against the remainder, upfront premium stacked on the base, the total amortized over the term at the rate shown, the monthly premium and the escrows added, and the payment measured against income and other debts.
Washington FHA cash-out estimate
A Washington example to start from. Enter your own figures to see your own ceiling, premium, and payment.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA cash-out refinance quote.
Illustrative starting assumptions: a $565,000 home value near Washington’s median owner-occupied value, a $311,000 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 Washington (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.
Same equity, three ways to borrow it.
FHA cash-out, conventional cash-out, line of credit: one purpose, three instruments, each with its own leverage, cost, and credit standard. Below is how they line up for a Washington owner and where each tends to fit.
FHA cash-out, conventional cash-out, or a HELOC.
The insured route: a lower decision score accepted, ratios that rise with documented strength, a year of occupancy required, two premiums as the price. It delivers the lump sum, the fixed payment, and the second lien folded in, for a Washington owner the conventional programs would decline.
Where the score is solid, the conventional cash-out wins on cost: nothing added to the balance for insurance, nothing added to the payment for it, and a wholesale lane above the agency cap for the strongest files. Lendmire prices it beside the FHA route on the same value, balance, and cash for every Washington review. See Lendmire’s conventional cash-out refinance program.
Keep the first mortgage, add a line. For a Washington 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 Washington scenario review.
What goes into a Washington 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.
Most FHA cash-outs in Washington close as planned; the ones that close for less, or not at all, usually meet one of the details below. Read them before the case number is requested.
Use these checks to keep the Washington 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 Washington home.
- Price the premium: The upfront premium is financed on top of the capped base loan; the monthly premium runs eleven years.
- Confirm the occupancy clock: Twelve months as the principal residence before the case number; inheritance is the exception.
- Build the credit case: Ratios rise only with documented compensating factors; an automated approval can exceed the reference.
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 Washington 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
HUD measures the year to the case number date, which the lender controls, so the timing of the request matters: a Washington owner a month short of the year waits a month, and a payment made outside the month due inside that year stops the file until a clean year has passed. The deed, the address records, and the mortgage history are the three proofs.
The decision score and the compensating factors
A recent credit event meets HUD’s waiting periods rather than an automatic decline, and an automated approval can carry the ratios past the manual tiers. The score still prices the loan, so a Washington borrower near the floor should expect that, and the review says whether a few months of credit repair would change the placement or the cost tier.
Closing costs and the premium come out of the loan
An insured cash-out carries the costs of any full mortgage, appraisal, title and settlement, recording, prepaid interest, escrow set-up, plus the upfront premium, which is financed. Rolled in, the costs consume part of the base ceiling; the cash in hand is what remains after the payoff and the costs, and the calculator reports the cash before them so the loan estimate’s figure comes off that.
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 Washington purchase or payoff the cash must meet.
From a Washington scenario review to cash at closing.
An FHA cash-out moves in a fixed sequence: a review that sizes the loan on the value, the balance, and the cash; the application, the case number, and the automated finding; the FHA appraisal and underwriting; closing, the rescission window, and disbursement. Each step is described below for a Washington owner.
Scenario review
The review is where the Washington owner learns whether the file fits HUD, what the premiums add, and whether the conventional cash-out or a line of credit would reach the same cash for less. It ends with written terms on a conservative value, and nothing is ordered until the owner agrees the plan is worth an appraisal.
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 Washington borrower sees the condition list here: statements, occupancy evidence, payoffs, insurance, and whatever the finding raises.
FHA appraisal and underwriting
The FHA Roster appraiser values the home and reports its condition against HUD’s minimum property requirements. If the value holds and no repairs are required, the loan is sized as reviewed; otherwise it is resized or the repairs are scheduled. Underwriting then verifies income, assets, the occupancy history, the payment history, and the payoffs.
Closing, rescission, and funding
At the closing table the Washington owner signs the note and the security instrument and the costs are settled; the rescission window then runs, and when it closes the settlement agent pays the old loans, records the new one, and wires the cash. The first payment, premium included, is due at the start of the second month after funding.
A brokerage built around equity lending.
A broker’s worth on an insured cash-out is choice and candor. The FHA route, the conventional route, the wholesale lane above it, and the line of credit are all available in one place, compared on the owner’s own figures, with the fit written up and the misfits explained.
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 Washington 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 Washington 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
Written terms come first and fees come after: the Washington owner sees the base loan, the premiums, the cash after costs, the payment, and the ratios on a conservative value before the appraisal is ordered, so a plan that cannot close never costs an appraisal fee.
Trusted by homeowners & families alike.
Washington FHA cash-out refinance FAQs
Before you apply in Washington: how much, how soon, what the premium costs, and when the conventional route or a line of credit is the better instrument.
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?
HUD limits the base loan to the share of the adjusted value shown in the snapshot, and the cash is what remains of that ceiling after the existing balance, any second lien being paid, and the closing costs. The upfront premium is financed on top of the base loan rather than deducted from the cash. The calculator above runs the numbers for a Washington value and balance; the FHA appraisal has the last word on the value.
How long do I need to have lived in my home before an FHA cash-out?
A full year as the principal residence before the case number is assigned, with the mortgage paid within the month due throughout that year; inheritance waives the year for a home occupied since the inheritance. The lender controls the case number date, so a Washington owner a few weeks short simply waits for it.
What does FHA mortgage insurance cost on a cash-out, and how long does it last?
Two premiums: an upfront premium that is a share of the base loan, financed into the balance in nearly every file, and an annual premium charged monthly on the outstanding balance at the rate the snapshot’s table sets for the leverage band and the base loan tier. A cash-out starts at or below the ninety percent band, so the monthly premium runs eleven years and stops. The calculator shows the first-year monthly premium on a Washington home.
What credit score do I need for an FHA cash-out refinance?
Two numbers in the snapshot matter: HUD’s floor and the wholesale program’s starting point. Above them the score prices the loan rather than deciding its availability, and the ratios and compensating factors carry the rest.
Would a HELOC be better than an FHA cash-out?
Look at your current mortgage first. A line of credit leaves a good first mortgage alone, borrows only the new money, reaches a higher combined leverage than HUD’s cap, and carries no premium, so for a modest or staged need it is usually the cheaper route, with a payment that can change and the line program’s own credit standard as the trade. When the first mortgage should go, or the sum is large and your credit suits HUD better than the line program, the FHA cash-out is the fit. Both are arranged here and priced side by side on your Washington figures.
What is different about the FHA appraisal?
An FHA Roster appraiser values the home on comparable sales and also inspects it against HUD’s minimum property requirements, so the appraisal can produce required repairs as well as a value: peeling paint, a failing roof, a missing handrail, a safety defect, a system that does not work. Repairs are completed before closing or through a repair escrow where permitted. On a Washington home the value sets the cap and the condition can set the calendar.
Is the FHA Streamline refinance a cash-out option?
The Streamline is a rate-and-term tool for existing FHA loans, not a route to cash. The two programs serve different purposes and are compared at the review when the current loan is FHA.
When do I actually get the money?
Signing and funding fall on different days. The rescission window runs first; then the payoffs go out and the cash is wired.
Are there restrictions on what I can use the cash for?
Any lawful purpose, with no restriction from HUD: the lender records the purpose on the application and documents a payoff only when the retired debt leaves the ratio. The loan is secured by the Washington home however the proceeds are used, and the tax treatment of the interest is a question for a tax adviser.
Run the Washington FHA cash-out numbers, then get the terms in writing.
Start with a review of the value, the balance, the cash wanted, the occupancy history, the score, and the income. A licensed Lendmire loan officer sizes the base loan under HUD’s cap, adds the premiums, prices the conventional cash-out and the line of credit beside it, and delivers written terms before any case number is requested.
This guide covers Washington — for the program overview, see Lendmire’s FHA cash-out refinance program.
All Washington city guides (6): Bellevue · Kent · Seattle · Spokane · Tacoma · Vancouver
Related programs: Cash-Out Refinance · FHA Loans · HELOC