FHA Rate-and-Term Refinance
If the FHA Rate-and-Term Refinance is on your radar for 2026, here is how it works, who it fits, and what to watch for.
How it works
A rate-and-term (no cash-out) FHA refinance changes your rate or term without pulling equity, allowing up to 97.75% LTV with a standard appraisal and underwrite.
Key things to know
- Minimum 3.5% down with a 580+ credit score (10% down for 500-579).
- Loan amounts are capped by your county FHA limit — $541,287 floor up to $1,249,125 in high-cost areas.
- FHA mortgage insurance applies; budget the 1.75% upfront premium plus annual MIP.
- The home must be your primary residence and meet FHA's minimum property standards.
Program rules are set by HUD and updated periodically. Join the free notification program to hear about changes to the FHA Rate-and-Term Refinance first.
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Frequently Asked Questions
- What is the FHA Rate-and-Term Refinance?
- A rate-and-term (no cash-out) FHA refinance changes your rate or term without pulling equity, allowing up to 97.75% LTV with a standard appraisal and underwrite.
- What credit score and down payment are required?
- Like other FHA loans, 580+ qualifies for 3.5% down; 500-579 requires 10% down.