Articles in Category: Cash-Out Refinance

May 6, 2022

FHA Refinance Loans: What You Should Know

If you are considering your FHA refinance loan options, there are several things you should know about refinancing with FHA before you apply. There are a variety of refinance loan options available-under FHA loan rules you can apply to refinance a home loan with cash out, you can also apply for an FHA Streamline Refinance that has no cash back to the borrower but also has no FHA-required credit check. Your participating lender is permitted to require an appraisal and/or credit check depending on lender standards and other variables. Borrowers in conventional loans or other non-FHA mortgage loans can refinance using the FHA Cash-Out Refinance option or choose an FHA refinance (with required credit check and appraisal) in the no-cash-out version of this type of FHA refinancing. FHA Streamline refi | more...

March 24, 2022

FHA Cash-Out Refinancing vs. VA Cash-Out Refinancing

By Joe Wallace

What are the major differences between VA Cash-Out Refinance loans and the FHA Cash-Out Refinance loan program? There are several, and some borrowers may have the option to consider both, including active duty military members, Reservists, members of the National Guard, veterans, and certain surviving spouses of military members who died as a result of military service. And then there are borrowers who are just trying to compare the options on the market. These house hunters may also be reviewing other home loan options such as USDA and conventional loans. What should people know about the FHA and VA versions of this refi loan option? As you can guess from the above, VA mortgages and refinance loans aren’t offered to the general public. Some sources report that in 2019 alone | more...

March 21, 2022

FHA Refinance Loan Q&A

By Joe Wallace

Thinking about a refinance loan but not sure where to start? There are some common questions about refinancing your home loan, we provide some answers to them below from cash-out refinancing to rehabilitation loans. When Can I Refinance My FHA Mortgage? That may depend on the type of refinancing you seek. You can get an FHA Cash-Out Refinance loan once you have owned and occupied the property for 12 months. For FHA Rate-And-Term Refinances, you can own the home for less than 12 months but the loan-to-value ratio will be lower than if you apply after having owned and occupied the home for more than 12 months. FHA Streamline Refinance options require you to own the home for at least six months. Can I Refinance A Non-FHA Mortgage Into An | more...

March 2, 2022

FHA Refinance Loan Terms You Should Know

By Joe Wallace

If you have never applied for a refinance loan and are considering an FHA refinance, you may be unfamiliar with certain industry jargon and loan terms that will come up in the course of your loan application and during the approval process. This article isn’t about what it takes to be approved for an FHA refinance loan, but it will make some aspects of the process a bit less mysterious. Rate And Term Refinance This is a type of FHA refinance option that features no cash back to the borrower, and uses all loan proceeds to pay off the original loan and cover closing costs. These loans can be used to refinance FHA or non-FHA mortgages. FHA Simple Refinance Like the Rate And Term, this refi option is meant as | more...

January 14, 2022

Advantages Of An FHA Cash-Out Refinance Loan

By Bruce Reichstein

Do you know the advantages of an FHA cash-out refinance loan? There are several, especially if you are considering an FHA loan to get money to renovate your existing home. FHA Cash-Out Refinancing Loans: Good For FHA and Non-FHA Mortgages FHA cash-out loans are for all mortgages, FHA, or not. You can refinance a USDA, VA, conventional, existing FHA loan, etc. The rules to qualify are the same no matter what kind of home loan you wish to refinance, and the longer you have been making mortgage payments, the better. FHA Cash-Out Refinance Loan Funds Are Not Restricted The uses you put your cash-out refinance money towards is not restricted; you can use your cash-out funds any way you see fit. That includes debt consolidation, vacations, and home repair. FHA Cash-Out | more...

the importance of credit for home loan approval

January 13, 2022

Refinance Loan Issues To Consider

By Joe Wallace

Are FHA refinance loans only permitted to refinance existing FHA mortgages? The short answer is that it depends on the loan you wish to refinance and why. Some FHA refi options can be used for any mortgage loan, while others are only for existing FHA mortgages. The First Thing You Should Know FHA mortgages are not need-based loans and neither are most refinance options under the FHA Single-Family Home Loan program. FHA loans have no income limit, no household income caps, and are not specifically targeted at a first-time borrower. If you have a stable income, have been in the job market for more than a year (two years or better is considered ideal), and have 12 months or more of on-time payments, you may be able to qualify for | more...

December 27, 2021

FHA Refinance Loan Options In 2022: FHA Cash-Out Refi

By Joe Wallace

How prepared are you to apply for an FHA Cash-Out Refinance loan? Some borrowers don’t realize that some FHA refinance options require more preparation than others. FHA Cash-Out loans have an FHA-required credit check and appraisal; saving for these expenses and your closing costs is a smart idea to maximize your borrowing power and keep your monthly payments lower. Financing your allowable closing costs may hike your mortgage payments; smart borrowers try to decide in advance how high the payment can go before it is too high. What does it take to qualify for an FHA Cash-Out Refinance and get your application approved? Aside from the basics like FICO scores and your record of on-time payments, you will need to have lived in the home as your primary residence for | more...

December 8, 2021

Is 2022 Your Year To Refinance?

By Joe Wallace

Are you thinking about refinancing your home in 2022? There are several options to choose from including FHA cash-out refinancing. FHA Cash-out refinance loans are an option for those who have used the home as their primary residence for the last 12 months as of the assignment of the FHA case number. That means that FHA cash-out refi loans are not allowed for investment properties, second homes, vacation homes, etc. If you don’t plan to use a property as your home, the home may not eligible for many FHA loan options. There is one exception–those who inherit property may refinance it without a minimum occupancy requirement. There is one caveat according to the FHA Single Lender’s Handbook: “In the case of inheritance, a Borrower is not required to occupy the | more...

September 1, 2021

Using Your Home Equity With An FHA Cash-Out Refinance Loan

By Joe Wallace

There are many uses for an FHA cash-out refinance. These FHA refi loans can be used to refinance FHA and non-FHA mortgages alike, and the funds from cash-out refinance loans can be used for any purpose including paying off credit card debt, making home improvements, and even paying for luxury items like cars or boats. But what is the best use of cash-out refinance loan proceeds? Like many similar home loan questions, the answer depends greatly on the financial needs and goals of the borrower. But there are some issues you should consider when deciding what to do with the money you get from an FHA refinance of this type. An FHA cash-out refinance loan is a good option for someone who has built up equity in their property over | more...

May 28, 2021

Which Refi Is Right For You?

By Bruce Reichstein

Do you need to refinance your home loan? There are plenty of choices, but two FHA loan products stand out for those who need lower payments or who want to get cash back on their refinance transaction. There are several FHA loan options available when it is time to refinance a home loan. Two of those are FHA cash-out refinancing and FHA Interest Rate Reduction Refinance loans, also known as an FHA IRRRL. Which loan should you apply for? This choice should be informed by your specific needs or goals. Do you want to refinance to get a lower monthly payment? Or do you want to take equity out of the to pay for home improvements, pay off credit cards or student loans? One type of refinancing is definitely better | more...