Can you recast an FHA loan
No. Under HUD Handbook 4000.1, FHA loans have no voluntary recast, and the servicers we list also do not recast VA or USDA loans. Choose a different loan type to find its rule.
Choose your loan type to view its rule and source.
Recast rules by loan type
| Loan type | Recast | Rule | Source |
|---|---|---|---|
| FHA | No | FHA loans have no voluntary re-amortization under HUD rules. A lump sum reduces the loan term; your payment does not change. | HUD Handbook 4000.1 |
| VA | No | Neither Rocket Mortgage nor the other servicers we list recast VA loans. | Rocket Mortgage |
| USDA | No | USDA loans are excluded as well; paying extra principal shortens them instead. | Rocket Mortgage |
| Conventional (Fannie Mae) | Usually yes | After a large principal payment, the servicer may re-amortize the balance using Form 181. | Fannie Mae C-1.2-01 |
| Conventional (Freddie Mac) | Usually yes | Re-amortization after a curtailment is covered by Freddie Mac's servicing guide. | Freddie Mac 8103.3 |
| Jumbo or portfolio | Up to the lender | Each lender sets its own rules. Wells Fargo recasts jumbo loans without a fee. | Wells Fargo |
$5,000 to $10,000usual minimum lump sum
$0 to $500usual recast fee
Same rateand same end date
One to twobilling cycles to process
Alternatives for FHA, VA or USDA loans
- Put the lump sum toward extra principal: your payment does not change, the loan ends early, and your interest costs go down. Use the recast vs extra payments or lump sum mortgage payment calculator to see it.
- Choose a conventional loan through refinancing, then recast it later if you need to. Use the recast vs refinance calculator to compare costs.
- Ask your servicer if they offer a simplified refinance for your loan type.
Questions about recasting by loan type
Can you recast an FHA loan?
No. FHA loans do not allow a voluntary recast. A lump sum still reduces the balance and shortens the loan term, while your payment stays the same.
Can you recast a VA loan?
None of the servicers we list offer this. Pay extra principal. If a lower payment is what you want, refinance into a conventional loan.
Can you recast a USDA loan?
No. Along with FHA and VA loans, USDA loans are excluded; extra principal reduces the loan term and keeps the payment.
Can you recast a jumbo loan?
In many cases. Jumbo and portfolio loans follow rules set by the lender, so ask your servicer.