Which loans and lenders allow recasting?
Whether you can recast depends mostly on your loan type — and then on whether your specific servicer offers it. Here's how to tell.
By loan type
| Loan type | Recast allowed? |
|---|---|
| Conventional (Fannie Mae / Freddie Mac) | Usually yes |
| Jumbo | Sometimes — varies by lender |
| FHA | Generally no |
| VA | Generally no |
| USDA | Generally no |
Even when a loan type is eligible, recasting is offered at the servicer's discretion. The company you mail your payment to — not the original lender, if your loan was sold — is who decides.
Typical requirements
- Minimum lump sum — often $5,000–$10,000 toward principal.
- Recast fee — commonly $150–$500, one time.
- Current, on-time loan — many servicers require a clean recent payment history.
- Seasoning — some require the loan to be a few months old before recasting.
If your loan doesn't qualify
If you have an FHA, VA or USDA loan, recasting usually isn't an option — but you still have two: apply the lump sum to principal and keep your payment (pays off sooner), or look at a refinance if rates have dropped. The calculator shows what a principal payment alone would do for you.
Frequently asked
- Can you recast an FHA, VA or USDA loan?
- Generally no. Government-backed FHA, VA and USDA loans do not allow standard recasting. Borrowers who want a lower payment on those loans typically look at refinancing instead.
- Do all lenders offer recasting?
- No. Recasting is allowed on most conventional (Fannie Mae / Freddie Mac) loans, but it is at the servicer’s discretion and not every servicer offers it. Always confirm with the company you send your payment to.
- What is the minimum amount to recast a mortgage?
- Most servicers require a minimum lump sum, commonly in the $5,000–$10,000 range, plus a recast fee that is often $150–$500.