FHA No-Cash-Out Refinance

FHA no cash-out refinance programs can be a smart option for both first-time buyers and long-time homeowners. Whether you’re hoping to secure a lower interest rate, shorten your loan term, or move from an adjustable-rate mortgage to a more predictable fixed-rate option, FHA offers several pathways worth considering.

FHA No-Cash-Out Refinance Overview

An FHA no-cash-out refinance is designed for homeowners who want to update the terms of their mortgage without taking equity out at closing. This type of refinance is especially useful when today’s rates match — or improve upon — the rate you originally qualified for.

Even if current rates aren’t exceptionally low, converting an adjustable-rate mortgage (ARM) to a fixed-rate loan can provide long-term stability and predictable monthly payments. Homeowners may also choose to refinance into a shorter loan term to build equity faster and pay off the mortgage sooner.

Types of FHA No-Cash-Out Refinances

FHA Rate-and-Term Refinance
Allows borrowers to adjust their interest rate, loan term, or both to reduce monthly payments or accelerate payoff.

FHA Simple Refinance
Designed exclusively for existing FHA-insured mortgages. Similar to a rate-and-term refinance, but limited to FHA loans only.

FHA Streamline Refinance
Ideal for current FHA borrowers looking for a lower rate, lower payment, or a switch from an ARM to a fixed-rate loan. Streamline refinances require minimal documentation and may not need a new appraisal, since lenders rely heavily on the original application.

Eligibility and Key Considerations

To qualify, borrowers must be current on their mortgage and have no missed housing payments in the 12 months leading up to the application.

Before moving forward, it’s important to weigh closing costs, ongoing mortgage insurance, and the break-even point—how long it will take for monthly savings to outweigh upfront expenses.

Finally, keep in mind that not all lenders offer every FHA refinance product. Take the time to compare participating FHA lenders to ensure you’re choosing one that provides the exact refinance option you need.