Is Refinancing Available for FHA, VA, Jumbo, or USDA Loans?

Yes. FHA, VA, USDA, and jumbo loans can all be refinanced, and the three government programs each have a streamlined refinance: the FHA streamlined refinance, the VA Interest Rate Reduction Refinance Loan (IRRRL), and the USDA Streamlined-Assist refinance. These generally skip a new appraisal and reduce underwriting requirements, but USDA still verifies household income eligibility; they are for lowering your rate or payment, not for taking cash out. Jumbo loans have no government program, so each lender sets its own credit, reserve, and appraisal rules.

Which refinance programs are available for each loan type?

The table compares the main options as of October 2026. "Seasoning" means how long you must have had the current loan before you can refinance it.

Veterans who receive VA disability compensation do not pay the VA funding fee on either VA refinance. Lenders can add their own requirements on top of these minimums. VA's handbook, for example, lets a lender order a credit report or appraisal on an IRRRL and charge you for it, so ask each lender you compare what it requires.

How do FHA streamlined and cash-out refinances work?

An FHA streamlined refinance replaces one FHA loan with another. In the non-credit-qualifying version, FHA requires no appraisal, no credit report, and no income check, and borrowers generally stay on the new loan. HUD allows a borrower to be removed after divorce, legal separation, or death if the remaining borrower documents having made the mortgage payments for at least six months before FHA case number assignment. When applicable, the divorce decree or separation agreement must also award that borrower the property and payment responsibility. Otherwise, removing a borrower requires the credit-qualifying version, which adds a full credit and income review but still skips the appraisal.

The new loan must give you a "net tangible benefit." For a fixed-rate loan going to a new fixed rate, the new combined rate (interest rate plus annual mortgage insurance premium rate) must be at least 0.5 percentage point lower. Moving from an adjustable-rate mortgage (ARM) to a fixed rate also qualifies. You can receive no more than $500 in cash at closing.

You keep paying FHA mortgage insurance. The new loan carries a new upfront premium of 1.75% of the loan amount, unless your old loan was endorsed by FHA on or before May 31, 2009, in which case the upfront premium is 0.01% and the annual premium is 0.55%.

Closing costs are separate, and FHA does not allow them to be added to the streamlined refinance loan amount. You need cash or another permitted way to cover them; a lender may cover them in exchange for a higher interest rate.

An FHA cash-out refinance lets you borrow up to 80% of the home's appraised value and take the difference in cash. You must have owned and lived in the home as your main residence for the 12 months before applying. FHA also offers a regular rate-and-term refinance with an appraisal, which allows up to 97.75% of value for owner-occupants of 12 months or more.

How do the VA IRRRL and VA cash-out refinance work?

The IRRRL refinances a VA loan into a new VA loan. Federal law sets three tests:

1. Rate drop. A fixed-rate loan going to a new fixed rate must be at least 0.5 percentage point lower. Going from a fixed rate to an ARM requires a drop of at least 2 percentage points.
2. Recoupment. Your fees and closing costs, not counting taxes, escrow deposits, and the funding fee, must be recovered through lower monthly payments within 36 months.
3. Seasoning. You must have made 6 consecutive monthly payments, and 210 days must have passed since the first payment due date.

You only need to certify that you live in the home now or lived there before, so an IRRRL works on a former home you now rent out. Closing costs, the funding fee, and up to two discount points can be added to the loan, and you cannot take cash out.

A VA cash-out refinance can replace any mortgage, including an FHA or conventional loan, with a VA loan. The new loan can be as high as 100% of the appraised value, and you must live in the home. It requires a full credit and income review, and the lender must tell you in writing, within 3 business days of your application and again at closing, how much equity you are removing.

What are the USDA refinance options?

USDA guaranteed loans offer three refinances, and none of them allow cash out:

• Streamlined-Assist. No credit report, debt-to-income calculation, property inspection, or loan-to-value limit. You must provide income and asset documents to show your household income falls within USDA limits. The combined monthly payment for principal, interest, and the annual-fee installment must drop by at least $50. The new rate must be fixed and no higher than your current rate, and no mortgage payment may have been more than 30 days late in the 180 days before you apply. The existing loan must have closed at least 180 days before submission to USDA.
• Streamlined. For existing USDA guaranteed loans. No new appraisal, but full credit and income underwriting.
• Non-streamlined. For USDA guaranteed or direct loans. Requires a new appraisal, and closing costs can be included only if the home has enough equity.

The home must still be your main residence. For fiscal year 2027 (October 1, 2026 to September 30, 2027), USDA charges a 1.00% upfront guarantee fee and a 0.35% annual fee on refinances, and the upfront fee can be added to the new loan.

Can you refinance a jumbo loan?

Yes. A jumbo loan is a conventional loan above the conforming loan limit, which for 2026 is $832,750 for a one-unit home in most of the country and up to $1,249,125 in high-cost areas. Because Fannie Mae and Freddie Mac cannot buy these loans, there is no standard refinance program, and each lender sets its own minimum credit score, cash reserves, and appraisal rules. Jumbo borrowers tend to have strong credit: CFPB data show a median credit score of 760 for jumbo refinance borrowers in 2023, against 736 for conforming refinance borrowers.

If your balance has dropped to or below the conforming limit for your county, you can refinance into a conforming loan instead, which follows Fannie Mae or Freddie Mac rules rather than one lender's.

When should you refinance a government loan into a conventional loan?

A conventional loan is one with no government insurance or guarantee. How government-insured and conventional loans differ covers the basics. Moving usually makes sense in two cases:

• You want to stop paying FHA mortgage insurance. For FHA loans with case numbers assigned on or after June 3, 2013, the annual premium lasts the life of the loan if you put down less than 10%, or 11 years if you put down 10% or more. A conventional loan at 80% of value or less carries no mortgage insurance. Whether refinancing lowers your PMI shows how to compare the premium saved with the closing costs.
• Your credit now qualifies you for a conventional loan. Fannie Mae sets no minimum credit score for loans approved through its automated underwriting system, Desktop Underwriter, and requires 620 for a manually underwritten fixed-rate loan. Compare the conventional rate and any mortgage insurance with what you pay on the government loan.

Staying in the government program may make sense if your credit has weakened or your home has lost value, since streamlined options can reduce credit and appraisal requirements. Before you apply, check the requirements to refinance a mortgage, and see what refinancing a mortgage means for how a refinance replaces your current loan.