Most loan programs require equity to refinance. The government-backed streamlines are the exceptions. The streamline options, program by program: - FHA Streamline (the non-credit-qualifying version) requires no appraisal and no income or employment re-verification, but the new loan must pass a net tangible benefit test, meaning the refinance has to clearly improve your position. - VA IRRRL requires no appraisal and no income verification in the ordinary case, though a materially higher payment or a longer term can trigger re-underwriting or an appraisal. - USDA is the carve-out. The Streamlined-Assist option skips the appraisal and the DTI and credit calculation but still verifies your income remains eligible, and the plain USDA streamlined refinance does require an appraisal. The logic behind all of these: the government already backs your existing loan, so it will back an improved loan for the same borrower without re-checking value, since a lower payment makes default less likely. Conventional loans through Fannie Mae and Freddie Mac are bounded by maximum loan-to-value limits, so you generally need adequate equity to refinance. There are pressure valves, though. High-LTV programs like Fannie Mae's RefiNow and Freddie Mac's Refi Possible can exceed the normal limits for qualifying borrowers, so if your value has fallen, ask a lender what applies to your file before assuming the door is closed. Jumbo loans sit outside Fannie and Freddie entirely, and their equity rules vary by investor. One historical footnote: after 2008, the HARP program let underwater conventional borrowers refinance to lower rates. HARP has ended, and while a future downturn could bring something similar, do not plan around it. If you hold an FHA or VA loan, the streamline is your low-equity path.