Am I Eligible for a Mortgage Recast?

Short Answer

You may be eligible for a mortgage recast if your loan type and current loan status meet specific requirements. Not all loans qualify.

What’s Happening

You may be thinking about lowering your monthly payment after making — or planning to make — a large payment toward your mortgage balance.

Before your payment can be recalculated, your loan must meet certain eligibility guidelines. These guidelines are based on your loan type and whether your loan is in good standing.

What It Means for You

In most cases, you may be eligible if:

• Your loan is current and not past due
• You have made at least your first scheduled mortgage payment
• You are able to make the required minimum principal payment (often $10,000 or more)
• You pay the required one-time processing fee
• Your loan type allows recasting

Many government-backed loans (such as FHA, VA, or USDA loans) are typically not eligible.

You are generally not eligible if:

• Your loan is in active bankruptcy
• Your loan is in foreclosure
• Your loan is in forbearance or another payment assistance program
• Your loan is interest-only
• Your loan does not meet investor or servicing requirements

Important distinctions:

• Eligibility does not change ownership of the property.
• You remain financially responsible for the full loan balance.
• Only borrowers listed on the loan — or someone you have authorized — can request or discuss eligibility.

Meeting the minimum payment amount alone does not guarantee approval. All eligibility requirements must be met at the time of review.

What You Should Do Next

To confirm whether your loan qualifies:

1. Contact us to review your loan type and current status.
2. Ask about the required minimum principal payment.
3. Ask about the processing fee.
4. If eligible, request a recast application.

We will provide the required form after you contact us and eligibility is confirmed.

Important Information

• Not all loan types allow recasting.
• Eligibility is reviewed at the time you request it.
• A minimum principal payment and processing fee are typically required.
• You must usually be current on your mortgage.
• Eligibility rules may vary based on your loan type and investor requirements.

Contact Us If

• You are unsure what type of loan you have
• You want to confirm whether your loan qualifies
• Your loan status recently changed
• You have questions about eligibility requirements