Estimating cash from an FHA cash-out refinance, line by line
Line 1: the value that counts
How the math works
FHA cash-out loans are sized from the value in a new appraisal ordered by the lender. Online estimates and tax assessments can be far off, so treat any number you enter before the appraisal as a guess. If the appraisal comes in lower, every line below it shrinks.
Last reviewed against the primary sources listed below.
Before the appraisal
- Use a conservative value estimate.
- List improvements for the appraiser.
- Expect the cash estimate to change.
Calculator questions
Does FHA use my purchase price for cash-out?
No. It uses the new appraised value.