Refinance into an FHA?

[Benjamin Carver]

Hello! I believe you cannot but wanted to double-check since I couldn't get a real answer out of my google searching... Can I purchase a house in cash and then refinance into an FHA loan? Thanks in advance.

[Michael Dumler]

@Benjamin Carver Yes you can. I believe FHA cash out allows you to refinance up to 80% of your home's value and often comes with higher rates than standard FHA loans. Also keep in mind, with FHA insured loans, you're responsible for mortgage insurance which inevitably raises your monhtly payment. I would go with a convetional cash out to avoid mortgage insurance payments. Hope this helps!