Can I refinance an FHA loan to conventional?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes, and it's a common move to escape FHA's lifelong mortgage insurance. Once you have 20% equity and a 620-plus score, refinancing to conventional eliminates the FHA premium and can lower your payment.
Florida's rising values often get FHA owners to 20% equity within a few years. We'll confirm your equity and run the numbers to see how much shedding the FHA premium saves.
A popular move
Yes, and it is a smart one for many owners. Refinancing an FHA loan into a conventional loan can remove the FHA mortgage insurance once you have 20% equity, lowering your payment.
FHA insurance usually stays for the life of the loan, so this refinance is often the only way to cancel it.
What you need
You will need a credit score around 620 or higher, at least 20% equity to drop mortgage insurance, and a rate that still makes the switch worthwhile.
We compare the full cost for you. Reach out and we will see if moving from FHA to conventional saves you money.
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).