Articles in Category: Cash-Out Refinance

February 20, 2018

Should I Refinance With An FHA Mortgage?

Should I refinance with an FHA mortgage? There are many reasons why you might want to consider refinancing, especially if you are looking for a more competitive interest rate or need to move into a fixed rate loan instead of continuing with an adjustable rate mortgage. I Want To Get A Different Interest Rate Typically, on paper FHA mortgage loans do offer more competitive interest rate and it is possible for borrowers to get access to better rates with an FHA loan. But there is a very important factor here to consider-your credit history and FICO score may dictate your access to the most competitive rates. If you have excellent credit, your chances of a more competitive rate are better. If you have lower FICO scores or represent an increased | more...

February 15, 2018

Should I Refinance My Home Loan With An FHA Mortgage?

By Bruce Reichstein

Should I refinance my home with an FHA mortgage? There are several reasons why it’s good to consider your FHA options when it’s time to start planning a refi loan. I Want To Refinance To Get A Lower Interest Rate If you pay attention to online mortgage loan interest rate reports, you’ll see that in general FHA mortgage loan rates are lower than their conventional counterparts. The interest rate issue can be hard for some to understand because they see these rates compared side-by-side and assume those numbers are at or near what they will be offered if they applied at that moment. But interest rates are negotiated between the borrower and lender for FHA refinance loans, and a borrower’s credit plays a large part in determining what interest rates | more...

January 18, 2018

FHA-To-FHA Refinance Loan Rules

By Bruce Reichstein

Do you know the loan rules for FHA-to-FHA refinance loans? There are many reasons why a borrower with an existing FHA mortgage could need or want to refinance. Some are interested in taking a portion of their home’ s equity in cash, others want lower monthly payments. Let’s examine the rules of FHA-to-FHA refinance transactions. How the FHA Defines Refinancing The rules governing FHA-to-FHA refinancing are found in a section of HUD 4000.1, the FHA loan handbook. It defines FHA refinance loans as follows: “A Refinance Transaction is used to pay off the existing debt or to withdraw equity from the Property with the proceeds of a new Mortgage for a Borrower with legal title to the subject Property.” There are a variety of FHA loan options when you are | more...

Rehab Refinance Loans, reverse mortgages

January 16, 2018

Are FHA Refinance Loans Only For FHA Mortgages?

By Bruce Reichstein

Are FHA refinance loans only used to refinance existing FHA mortgages? The answer might surprise you, and we should begin by dispelling a long-time myth about FHA home loans and FHA refinance loans in the process. FHA Refinance Loans Are Open To All Financially Qualified Borrowers FHA loans have no income limit, and are not specifically targeted at one type of borrower. There is an impression that only first-time borrowers or first-time refinance loan applicants will be considered for FHA loan approval, but this is NOT TRUE. FHA loans require a minimum FICO score, have no income minimum or maximum, and have more generally lenient application requirements than many conventional mortgages. You cannot earn “too much” to be considered for an FHA mortgage. Your income is measured against your monthly | more...

December 29, 2017

Get Ready For Your FHA Refinance Loan In 2018

By Joe Wallace

Get ready for your FHA refinance loan in 2018! Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? Or perhaps you want to get out of an adjustable rate mortgage (ARM) and into a fixed rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan. How To Prepare For An FHA Refinance Loan In 2018 Many of the same steps you took for your original home loan application will apply when you begin planning for an FHA refinance loan. You’ll want to pull your credit reports are early as possible in the planning stages, and consider active credit monitoring to | more...

December 27, 2017

Is It The Right Time To Refinance My Home Loan?

By Joe Wallace

Is it the right time to refinance my home loan? The answer to that question depends on a variety of factors, but there are some things to remember no matter when you decide to refinance a home mortgage loan. A September 2017 report by Fortune.com includes data that indicates a general increase in home prices, including the observation of the “65th straight month that prices have risen year-over-year”. That same report mentions that “housing inventory declined for a 26th straight month on a year-over-year basis”. In housing markets where property values are going up, certain kinds of refinance loan options become more attractive. An FHA cash-out refinance loan makes more sense for borrowers who have more equity in the home; cash out refi loans require a new appraisal and if | more...

December 20, 2017

What Is The Difference Between FHA Cash-Out And No Cash-Out Refinance Loans?

By Joe Wallace

What is the difference between FHA Cash-Out and No Cash-Out refinance loans? Aside from the obvious cash out option, there are several important differences in these two types of FHA refinance loans you should know about before you decide which one is right for you. FHA Refinance Loan Occupancy Requirements FHA loans generally require at least one borrower obligated on the loan to occupy the property as the primary residence as a condition of loan approval. But beyond that, cash-out refinance loans and FHA no cash-out refi loans have some other occupancy rules you should know. For FHA Cash-Out refinancing, HUD 4000.1 instructs the lender, “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences. The Property securing the cash-out refinance must have been owned and occupied by the Borrower | more...

December 19, 2017

FHA Cash-Out Refinance Loan Rules

By Bruce Reichstein

FHA cash-out refinance loan rules include instructions to the lender that these refinance loan transactions can be used for both existing FHA loans and non-FHA transactions including conventional loans, VA mortgages, etc. There are some rules specific to FHA cash-out refi loans you should know about before applying. FHA Cash-Out Refinance Loan Payment History Requirement HUD 4000.1, the FHA loan handbook, states that the lender is required to document a cash-out refinance loan applicant’s payment history on the old mortgage loan. “The Mortgagee must document that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, whichever is less. Additionally, the payments for all Mortgages secured by the subject Property must have been paid | more...

October 17, 2017

How Can I Get Cash Back With An FHA Mortgage?

By Bruce Reichstein

How can I get cash back with an FHA loan? It’s a question many want to know, especially those who might be interested in applying for “more” FHA loan than is needed to complete the transaction. Is getting cash back at closing time possible with an FHA mortgage? The answer depends greatly on the type of transaction you seek. Some loans do not allow any cash back except for refunds, others are designed to offer money to the borrower at closing time depending on the terms of the loan and other factors. FHA New Purchase Home Loans If you are asking the cash back question about FHA forward mortgages (loans used to buy a home on the housing market as opposed to a refinance loan or an FHA reverse mortgage), | more...

August 4, 2017

Why Should I Refinance With An FHA Mortgage?

By Bruce Reichstein

Why should I refinance with an FHA mortgage loan? Many ask themselves this, and oftentimes the answer is good news; lower interest rates, the ability to refinance into a fixed rate loan from an adjustable rate mortgage, or lower mortgage payments. But there are also some FHA refi options for those who need to recover from natural disasters, or who want to rehab their property. Typical FHA Refinance Loan Options Borrowers with existing FHA mortgages have a full range of options including FHA Cash-out Refinance loans, FHA Streamline Refinance loans which can help with lower interest rates and mortgage payments, FHA no cash-out loans, and even reverse mortgages (for qualified borrowers aged 62 or older). Those with non-FHA mortgages may also refinance using cash-out or FHA no cash-out, options. You | more...