You should thoroughly read all the terms and conditions of your government loan and see if you meet the basic criteria to apply for a third-party of private refinance option. Generally you can apply for the streamline option, which reduces the principal amount of mortgage and monthly installments. However, you should be principal owner of the home and living in the home at the time for applying for refinancing of the loan. Also, the home should be insured, if it is financed by the Federal Housing Association (FHA) of America.
If you are not sure whether you qualify for getting your home refinanced, you can seek a consultation meeting with the FHA. Also, you can call the Association and ask for a eligibility number if you are sure that you are eligible for applying the housing refinance option. Quote that number in your all applications and documents with regard to seeking refinance of your home loan.
Calculation of Refinance
You can calculate that the refinancing is greater than your existing debt on your house, that is financed by the FHA. It can work as ceiling for the financing by the FHA. Also ask and go for the cash out option. This can allow you to borrow more money than loan-to-value ratio and you can use it for more purchases or any other option.
Being a public sector entity, the FHA is generally is quite slow to respond and red tape system mars the application processing time. You should be prepared for negotiating with the Association an equitable agreement. Do not leave any space and reach an agreement that benefits you in cash or payment of the loan in the longer run.