Estimating cash from an FHA cash-out refinance, line by line
Low appraisal and your cash
How the math works
Because the maximum FHA cash-out loan is a share of the appraised value, a lower appraisal lowers the largest loan you can get. Your payoffs and costs stay the same, so the cash you receive falls by the full amount of the drop in the maximum loan. Re-run your estimate with a cautious value before you apply.
Last reviewed against the primary sources listed below.
If the value comes in low
- Ask for a copy of the appraisal.
- Check comparable sales for errors.
- Consider a reconsideration of value if facts are wrong.
Calculator questions
What happens if my FHA cash-out appraisal is low?
Your maximum loan and your cash both go down.
Can I challenge a low FHA appraisal?
You can ask the lender for a reconsideration of value if there are errors.