Yes. If you meet the eligibility requirements outlined in Handbook 4000.1, you can refinance into an FHA-insured loan using a Cash-Out or a Rate and Term refinance. As a condition of loan approval, any PACE obligation must be paid off in full at closing.
Each borrower should talk to his or her lender and compare the terms and costs of the various financing options to determine what is best for his or her situation and needs.
To locate an FHA-approved lender, please visit https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist
For additional information see Mortgagee Letter (ML) 2017-18 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee