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Frequently asked questions

Can a borrower refinance from another loan type (FHA/VA/USDA) to a conventional loan?

Yes, you can refinance a government loan such as an FHA, VA, or USDA loan to a conventional loan. Refinancing to a conventional loan can be an effective way to access savings by removing mortgage insurance or mandatory fees that are common with government-backed loans.

By refinancing to a conventional loan, in addition to potentially lowering your interest rate, reducing your monthly payment, gaining access to your home equity (through a cash-out refinance), or adjusting your loan term, you could also:

  • Avoid the mandatory mortgage insurance premium (MIP) from your FHA loan.
  • Avoid the VA funding fee or use the home you purchased with a VA loan to earn rental income.

To be approved for a conventional loan you must meet these additional qualifying requirements: