If you want to know if FHA loans permit cash back to the borrower, then you’re in the right place. Here’s what you need to know about getting cashback on this popular government-backed home loan.

How Cash Back Works With Refinancing

A cash-out refinance is designed to give the borrower more than $500 cashback at closing. The FHA’s cash-out program allows you to cash out a portion of your equity and loan up to 85% of your home’s value.

You can receive less or up to $500 cashback when closing either a “no cash-out” refinance or a streamlined refinance. These refinance programs change your monthly payments with the streamlined program resulting in lower monthly payments or better loan terms.   

Note that in cases where an FHA refinance loan