FHA Borrowers

• Owners with legal title on single-family, multifamily and manufactured homes that already have an FHA-insured mortgage may qualify to refinance the same property with FHA. FHA insurance offers three main insurance programs: the streamline refinance, intended for borrowers who only seek to lower their monthly payment or improve their loan terms; the no cash-out refinance, which changes the loan's rate and term; and the cash-out refinance, which allows borrowers to access part of their home's equity. FHA borrowers seeking a cash out must have made all payments on time for at least the past 12 months.
  
  

Non-FHA Borrowers

• Borrowers who have legal title on a home securing a non-FHA loan, also known as a conventional loan, may qualify for FHA's no-cash out and cash-out refinance programs. Non-FHA borrowers may use the no-cash out refinance to buy out and remove an ex-spouse's or other co-borrower's interest in the property, according to FHA Outreach. Conventional borrowers may cash out out on their home's equity to consolidate debts. They may refinance a home owned free and clear of mortgage indebtedness. All cash-out borrowers on a one- to four-unit property must occupy the property as their principal residence.
  
  

Underwater Homeowners

• Between September 7, 2010 and the end of 2012, FHA is insuring refinances for certain non-FHA borrowers in negative equity positions, or "underwater" homeowners, according to the Department of Housing and Urban Development. The temporary refinance program, known as an FHA short refinance, helps borrowers who are current on their existing mortgage. The borrower's lender must agree to forgive or "write off" at least 10 percent of the principal loan balance to qualify, according to HUD's press release. A borrower who has experienced a reduction in income and is therefore unable to repay their current mortgage debt may also qualify for the short payoff refinance.
  
  

Considerations

• With the exception of FHA's streamline refinance, qualified applicants meet FHA's minimum debt-to-income ratios, which are calculated using employment, earnings, asset and monthly expense documentation.
  
  Condominium owners may qualify to refinance only if their property is part of an FHA-approved condo project, as determined by HUD's database.
  
  Manufactured home owners may qualify only if their property has been permanently erected on a site for more than 12 months, the property is complete and taxed as real property, according to FHA Outreach.