Refinancing your mortgage can help you save money, lower your monthly payments, shorten your loan term, or access your home equity. But with so many options, which refinance loan is right for you?
This guide breaks down the 12 main types of refinance loans available today — from conventional and government programs to jumbo and specialty refinances — so you can make the best choice for your financial goals.
1. Conventional Refinance Loan
A Conventional Refinance Loan follows Fannie Mae and Freddie Mac guidelines. It’s ideal for homeowners with good credit and at least 20% equity.
- Rate-and-term refinance — lower your rate or switch to a shorter loan term
- Cash-out refinance — take equity out of your home for renovations, debt payoff, or expenses
- Cancel PMI once you reach 20% equity
- Stricter credit requirements than FHA/VA loans
If you already have an FHA loan, the FHA Streamline is one of the easiest refinance options.
- No appraisal required (in most cases)
- No income or credit verification required
- Must show a “net tangible benefit” (lower rate or safer loan type)
- No cash-out allowed
Need to unlock equity? The FHA Cash-Out Refinance allows you to borrow up to 80% of your home’s value.
- Cash for home improvements, debt consolidation, or large expenses
- Flexible credit requirements compared to conventional
- Full appraisal and income verification required
- Mortgage insurance (MIP) required
The VA IRRRL (Interest Rate Reduction Refinance Loan) helps veterans and service members lower their rate quickly.
- No appraisal required
- No income or credit check required
- Lower your rate or switch from ARM to fixed
- No cash-out allowed
A VA Cash-Out Refinance allows veterans to access their home equity or refinance a non-VA loan into a VA loan.
- Borrow up to 90–100% of your home’s value (depending on lender)
- Use funds for almost any purpose
- Full appraisal and income verification required
- No PMI required
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For homeowners with an existing USDA loan, the USDA Streamlined Assist program offers one of the easiest approval processes.
- No appraisal required
- No credit check required
- Must save at least $50/month on your new loan
- 12 months of on-time payments required
- No cash-out option
For homeowners with mortgages above conforming loan limits, a Jumbo Loan Refinance can help lower your rate, reduce monthly payments, or unlock equity.
- Works for luxury homes and high-cost housing markets
- Can be used for rate-and-term or cash-out refinance
- Typically requires a credit score of 680–700+
- At least 20% equity preferred
- Full appraisal and strong documentation required
→ Learn more about: Conforming vs Non-Conforming Loans
A Cash-In Refinance is the opposite of a cash-out. You bring extra money to closing to reduce your loan balance.
- Helps you qualify for better rates
- Can remove PMI faster
- Lowers your loan-to-value (LTV) ratio
This is the most common refinance type — replacing your old mortgage with a new one at a better rate, different term, or both.
- Reduce monthly payments
- Switch from a 30-year to a 15-year loan to save on interest
- No cash out, just new terms
“Streamline refinance” refers to simplified programs (FHA, VA, USDA) designed for speed and low documentation.
- No appraisal required (most cases)
- Minimal paperwork
- Ideal if you just want a lower rate, not cash out
11. No-Closing-Cost Refinance
A No-Closing-Cost Refinance allows you to refinance without paying fees upfront. Costs are either rolled into the loan or offset by a slightly higher interest rate.
- Save money at closing
- Good for short-term homeowners
- Slightly higher monthly payments
12. Short Refinance (Hardship Refinance)
A Short Refinance is rare but may be offered if you’re underwater or facing hardship. The lender agrees to refinance the mortgage for less than you owe to help you avoid foreclosure.
- Can keep you in your home
- Only offered in special circumstances
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→ Read more about Does Refinancing Lower Your Monthly Payment?
Comparing Refinance Loan Types
Loan Type | Best For | Appraisal Required | Credit Check | Cash-Out Option | Special Benefit |
| Conventional | Homeowners with equity & strong credit | Yes | Yes | Yes | Cancel PMI |
| FHA Streamline | FHA borrowers wanting quick savings | No (most cases) | No | No | Easy approval |
| FHA Cash-Out | Borrowers needing equity access | Yes | Yes | Yes | Flexible credit |
| VA IRRRL | Veterans lowering rates quickly | No | No | No | Fast process |
| VA Cash-Out | Veterans needing cash or switching to VA | Yes | Yes | Yes | No PMI |
| USDA Streamlined Assist | USDA borrowers in rural areas | No | No | No | Must save $50+ |
| Jumbo Loan | High-value homes above conforming limits | Yes (sometimes 2) | Yes | Yes | Luxury property financing |
| Cash-In | Borrowers wanting lower LTV | Yes | Yes | No | Remove PMI faster |
| Rate-and-Term | General borrowers seeking savings | Yes | Yes | No | Lower rate/shorter term |
| Streamline (General) | FHA/VA/USDA borrowers | No (most cases) | No | No | Minimal paperwork |
| No-Closing-Cost | Borrowers avoiding upfront fees | Yes | Yes | Yes | Pay later, not now |
| Short Refinance | Borrowers in hardship | Yes | Yes | No | Prevent foreclosure |
Why Refinance with Loan Factory?
Refinancing should be easy, transparent, and built around your savings — and that’s exactly what we deliver.
- Smarter Technology, Better Offers
Compare refinance options from 240+ lenders in seconds with our MOSO platform.
Bring us any competitor’s official offer. If we can’t beat it, you get $1,000. (Terms & Conditions apply.)
No inflated charges. No surprises. Clear, upfront pricing every time.
Our advisors understand every refinance scenario — from rate-and-term to cash-out.
Ready to refinance with confidence?
Start your refinance with Loan Factory today.
Apply online: www.LoanFactory.com/apply
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Talk to an advisor: (660) 333-3333
FAQ: Types of Refinance Loans
