San Diego FHA Home Loan Cash Out Refinance - Rates, Limits & Details (2024 Update)

(Please note - these numbers below have been updated for 2023 and are specifically for San Diego however we can do loans throughout California. We do our best to make sure everything is correct at the time you are reading it.)

In this post we break down the ins and outs of the fha cash out refinance home loan in San Diego.

This mortgage loan is great if you have an fha loan, have built up some equity over the years, and want to take some cash out to use as you wish. 

In this post I cover:

Here's the main points and highlights of the program... 

(Please keep in mind I am approved with 40 +/- wholesale lenders in the state of California and each lender will have different FHA Cash Out Loan requirements. Things like credit scores, months reserves, DTI's, etc can vary from lender to lender and the below are used for examples.)

  • You do *not* need to be a first time home buyer - you can have never owned before and/or never owned anything ever (I get this is for someone who currently has an fha loan but some people like to plan in advance). 

  • This will work for anyone looking to *live* in the home as their primary residence (does not work on second home, vacation home, or investment properties).

  • This works on any livable home, PUD (planned urban development), town home/condo (that is an FHA approved complex), and livable 2 unit, 3 unit, and 4 unit properties. I do not personally deal with land, mobile, or manufactured homes.

  • The minimum credit score needed is a 500 middle credit score - however, higher the better for cash outs. (Keep in mind if it's you we use your middle score and if it's you and a co-borrower we use the lowest middle score. We do *not* rely on Credit Karma, or Credit Sesame, or any of these. When we pull your credit report thats the score we use.)

  • The maximum loan to value (LTV) we can do is UP TO 85% depending on the type of property it is (Meaning: if it's a home you can get a higher LTV than a 4 unit). 

Example: Let's say your home appraises for $1,000,000 the maximum new loan amount can be $850,000 = 85% LTV. 

  • The maximum debt to income (DTI) ratio we can do is UP TO 56.99%. (We get this by adding up your total debts on your credit report + new housing payment / average monthly gross income over 12 months. 

Example: We add up your current debts + future housing payment and they are $5699. That means your minimum monthly gross income needs to be $10,000 or more = 56.99% max DTI allowed per fha. 

The maximum loan amounts in San Diego county are as follows:

→ Max loan amount for a 1 unit is $977,500

→ Max loan amount for a 2 unit is $1,251,400

→ Max loan amount for  3 unit is $1,512,650

→ Max loan amount for a 4 unit is $1,879,850

  • This loan works for for anyone that has a full time job or business for at least 2 years or longer (It's not just limited to first time home buyers, those with limited income, or those with less than perfect credit.)

The waiting periods for the FHA loan are as follows:

  • 2 years from Chapter 7 discharge date 

  • 3 years if you have a foreclosure

  • 3 years if you have a short sale

Here's 5 typical questions I get (and how I answer them)... 

(Please keep in mind your personal situation might be different and these are used as examples only).

→ Question #1: How do I know what my house's true value is?

We will be doing a full fha appraisal by a licensed 3rd party home appraiser to see based on comparables. Your value is usually determined by 3 to 6 recent sales of homes just like yours in your immediate area. 

→ Question #2: If I have an FHA loan now - what is the soonest I can refinance?

You usually need to have had your current fha loan for a minimum of 210 days from when that one closed to when your new one closed. Usually, on an fha cash out we dont have this issue and you bought at least a year or more ago as we need to have a minimum of 15% equity or more. 

→ Question #3: How can I pay for closing costs?

Closing costs can be paid a few ones. We can potentially use a lender rebate to cover costs, you can roll them into the loan amount itself, or you can pay these out of pocket - or, we can use a combination of all three options. 

→ Question #4: I have an FHA loan now with an impound account what happens to that money?

Your new loan, will pay off your old loan, and your old lender will reimburse you anything that was left over in your impound account usually within 21 business days. 

→ Question #5: How long does it take to get the money on the cash out?

From start to finish on the loan it will take about 30 days or less. Then, after the loan closes with escrow, escrow will be seding you the check or wire however you choose, within about 5 business days. 

Here's 5 secrets of this loan (or misconceptions) you might not be aware of... 

(Please keep in mind your personal situation might be different and these are used as examples only).

 Secret #1: You can use the cash out for anything

Don't worry, when you get your cash out, you can use that for anything you wish. Whether that's improvements on your place, paying off debts, making investments, take trips, building up a "just in case fund", etc. 

 Secret #2: You can skip a mortgage payment (or two)

Depending on when we close the loan, and when you made your last payment, would determine if you are able to skip one mortgage payment, or two, which keeps more money in your pocket. 

 Secret #3: Your home is (probably) worth more than what you think

With the drastic run up in San Diego home values since 2012, and depending on when you bought yours, and for how much, I wouldn't be surprised if your home is worth more than you think. 

 Secret #4: You can use your cash out refinance to buy another real estate investment

While you can only use an FHA loan as owner occupied you can do a cash out refinance on your primary home with an fha loan and then use the proceeds to put down on a vacation home or investment property and use another type of loan like a conventional or jumbo loan

 Secret #5: You don't have to have an fha loan now

Let's assume you have a usda or conventional loan now, and for whatever reason you can't or don't want to use those loans to refinance, you can use an fha cash out refinance instead. 

Basic documentation needed from you (or you and co borrower) to begin... 

(Please keep in mind these are the basic documents we will probably need. Depending on your personal situation we may need more or less and will advise accordingly). 

  • Copy of your drivers license (screen shot is fine)

  • Copy of your social security card (screen shot is fine)

  • Last 30 days paychecks (you should get these from your employer via email and PDF each time you are paid). 

  • Last 2 months bank statements - all pages (You just log into wherever you have a bank acount online and save the last 2 months via PDF.)

  • Last 2 years taxes and W2's - If you do not have them you can get them from the IRS website here

  • Latest statements if you have anything like: 401(k), retirement, stocks, bonds, mutual funds, etc

  • If you are self employed we will need last 2 years taxes and W2's (if applicable) as well as year to date profit and loss sign and dated (you can do this - doesn't need to be a CPA). 

  • We can potentially need more depending on this like: pay or collect child support, have been divorced, have had a short sale or foreclosure, have filed bankrupcty, have rental properties, etc. 

Here's your steps to begin right now... 

  1. Fill out my online application at Scotts Loan If it's just you - then you fill it out just for yourself. If you are married - it's you and your spouse (regardless if they work or not, their income, their credit, etc.) If its you and a co borrower - then you both fill it out.

  2. Once complete I will be alerted, check everything over, send you out a list of needed supporting documents, and clarify anything if needed

  3. Once I get the needed supporting documents from you I will double check th application, your needed supporting documents, pull your credit report (it's currently $38 +/- and I pay for that), and get back to you with best scenarios.

  4. If an fha loan doesn't work for whatever reason we can always look at going with another loan program that's better suited for your needs. 

I would love to help assist you with your fha cash out loan - please feel free to give me a call, text, or use the form below. 

Your FHA Cash Out Loan Insider,


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