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Federal Housing Administration Refinance for Borrowers with Negative Equity (FHA Short Refinance)

If you're up-to-date on your mortgage payments, but owe more than your home is worth, FHA Short Refi could get you into a more affordable, more stable, FHA-insured mortgage.

Application Deadline: December 30, 2016

NEXT STEP: Prepare What You'll Need ›

Features and Benefits

  • Through FHA Short Refinance, your mortgage company reduces your unpaid principal balance by at least 10 percent.
  • After FHA Short Refinance, what you owe on your mortgage is in closer alignment with the value of your home.
  • FHA Short Refinance provides you with both an affordable and stable loan product insured by the federal government.


See FHA Short Refinance Consumer Fact Sheet for eligibility.


Find the list of FHA-approved lenders ›

Similar Programs

Fannie Mae, Freddie Mac, Veterans Affairs (VA), and U.S. Department of Agriculture (USDA) also offer mortgage solutions for homeowners with mortgages they own, insure, or guarantee.

Find out whether your mortgage is owned, insured, or guaranteed by Fannie Mae, Freddie Mac, FHA, VA, or USDA, and learn more about the MHA programs and other resources they’ve designed to address your needs.

Complementary MHA Programs

If you're current on your mortgage and your mortgage is owned by Fannie Mae or Freddie Mac, MHA's Home Affordable Refinance Program (HARP) could be a good option for you.

For More Information

Visit the Learning Center for Frequently Asked Questions (FAQs) and the Glossary of Key Terms.

If you have additional questions or need direct assistance, don't hesitate to reach out for help by calling 888-995-HOPE (4673). You will be connected with an expert from a HUD-approved housing counseling agency. These counseling experts can help you understand your options, design a plan to suit your individual situation, prepare your application; and in many cases, they're able to submit the application for you.

Studies suggest that homeowners who work with housing experts like these are more successful and have better long-term outcomes. There is no cost to you for this valuable, around-the-clock service. Help is available in more than 170 languages.

Last Updated: 6/24/2016 15:45