FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance)

FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance)

If you're not behind on your mortgage payments but owe more than your home is worth, FHA Short Refinance may be an option that your mortgage servicer will consider. FHA Short Refinance is designed to help homeowners refinance into more affordable, more stable FHA-insured mortgage. If your current lender agrees to participate in this refinance, they will be required to reduce the amount you owe on your first mortgage to no more than 97.75 percent of your home's current value.


You may be eligible for FHA Short Refinance if you meet the following criteria:

  • Your mortgage is not owned or guaranteed by FHA, VA or USDA.
  • You owe more than your home is worth.
  • You are current on your mortgage payments.
  • You occupy the house as your primary residence.
  • You are eligible for the new loan under standard FHA underwriting requirements.
  • Your total debt does not exceed 50 percent of your monthly gross income.You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.
Program Availability
  • Participation of mortgage servicers is voluntary.
  • Contact your mortgage servicer and ask whether they participate in FHA Short Refinance.


The government has created a variety of programs to help homeowners having difficulty meeting their monthly mortgage obligations. The following is a partial listing of the programs that are now available to homeowners who need assistance:


El gobierno ha creado una variedad de programas para ayudar a los propietarios que tienen dificultades para cumplir con sus obligaciones mensuales de la hipoteca. La siguiente es una lista parcial de los programas que están ahora disponibles para los propietarios de viviendas que necesitan ayuda:

Free Quote