Cash-out
FHA cash-out refinance
Use the equity you've built in your Texas home for debt consolidation, repairs, or reserves — with FHA's more flexible credit guidelines and a fixed rate.
What it is
An FHA cash-out refinance replaces your current mortgage with a larger FHA loan and returns the difference to you at closing. FHA caps cash-out at 80% of the appraised value. Texas has additional consumer protections for cash-out home equity loans on a homestead, including specific disclosure timing and closing location requirements, so the process is a little more structured here than in other states — we walk you through it.
Who it's for
- Homeowners with at least 20% equity after the new loan
- Borrowers consolidating higher-rate credit card or personal loan debt
- Homeowners funding repairs, a roof, HVAC, or storm damage work
- Borrowers who don't qualify for a conventional cash-out
The 3.5% down rule, in plain English
FHA's headline benefit is a 3.5% minimum down payment with a credit score of 580 or higher. Below 580, the minimum is 10%. Down payment funds can come from savings, a documented gift from family, or an eligible Texas down payment assistance program. FHA also allows a higher debt-to-income ratio and shorter waiting periods after a past credit event than most conventional programs.
Qualification checklist
- Maximum 80% loan-to-value based on a new appraisal
- 12 months of on-time mortgage payments and 12 months of occupancy
- Owner-occupied primary residence
- Texas homestead cash-out disclosure and timing rules apply
- New loan within your county's FHA limit
This site is not affiliated with or endorsed by HUD, the FHA, or any government agency. Rate and payment examples are estimates for illustration only. Rates are subject to change and this is not a commitment to lend. Actual APR depends on credit, occupancy, loan amount, and property details.