Articles in Category: FHA Refinance

July 22, 2021

The FHA Streamline Refinance Loan: No FHA-Required Credit Check

FHA refinance loan options are looking more attractive to some borrowers with FHA loan rates still well below the three percent line at press time after some ups and downs in 2021. But the range of options confuses some. What do you need to know about the Streamline FHA Refinance loan option compared to FHA cash-out refinancing or FHA 203(k) Rehabilitation Loan refinancing? Streamline FHA Loan Facts You Should Know First-time applicants may be surprised to learn there is no FHA-require appraisal. Your lender is allowed to require one, but if they choose to process your FHA streamline refinance without one, you’re spared the appraisal fee. Most FHA loans require a credit check and have a set of minimum qualifying scores. What about FHA Streamline? FHA Streamline loans allow your | 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...

April 21, 2021

FHA Refinance Loans: Maximum Loan Calculations

By Bruce Reichstein

How much can you get to refinance your home loan? Much depends on the nature of the refinance loan you seek–cash out, no cash out, simple refinance, FHA Streamline refinance loans, etc. What is the maximum loan-to-value ratio for an FHA refinance loan? FHA Refinance Loans Have Maximum Loan-to-Value Ratios FHA loan rules vary depending on the nature of the refinance loan. For example, appraisal-required cash out refinance loans? Cash-out refi mortgages guaranteed by the FHA feature an 85% loan-to-value ratio. Simple refinances have a maximum mortgage loan-to-value ratio of 97.75 percent for Principal Residences and 85 percent for HUD-approved Secondary Residences. Streamline Refinances For owner-occupied Principal Residences the “maximum Base Loan Amount” for Streamline Refinances is the lesser of the outstanding principal balance of the existing Mortgage as of | more...

April 16, 2021

Learn More About Home Loans: Appraisals & Inspections

By Bruce Reichstein

It’s important to learn as much as you can about the home loan process when planning and saving for your new mortgage. If you are a newcomer to the home loan process, there are some good resources that can help you be more informed borrower. The less informed you are, the more likely you are to have some kind of regret at the end of the home loan process. The more you know, the more confident you will feel about your choices along the way. One important issue for many borrowers is the FHA appraisal process. Are you in-the-know about what happens during the appraisal, what it is intended to do and why you should never trust the appraisal to provide you the information that only a complete home inspection | more...

April 1, 2021

FHA Refinance Loan Advice in 2021

By Bruce Reichstein

Are you considering applying to refinance your home loan? Which refi option is the right choice? Some people seriously consider a refinance loan without knowing all the options–some kinds of refinancing are more appropriate for some needs than for others. How to select the right loan for your needs? It’s one of the first hurdles you’ll clear when learning about refinancing. Borrower choices include cash-out refinancing, FHA Streamline refi loans, and FHA 203(k) Rehabilitation refinance loans for those who want to refinance and remodel the home at the same time. Refinancing Non-FHA Mortgages Generally speaking, FHA refinance loan rules permit an FHA-to-FHA refinance loan, but also options for non-FHA-to-FHA refinance loas. The FHA refinance loan program allows you to get out of a higher interest rate conventional mortgage into a | more...

March 25, 2021

Uses For An FHA Cash-Out Refinance Loan

By Joe Wallace

If you are thinking about applying for a cash-out refinance loan, you likely have some ideas about what you want to use the money for. FHA Cash-Out refinance loans allow the homeowner to convert equity built up in the home and take it out in cash. The amount of cash back is determined once the original loan and the closing costs of the new loan have been dealt paid. How to use the money? Some want an FHA cash-out refi to do home improvements with no restrictions on how the cash gets used. These loans don’t have the same restrictions on how the funds are used when you compare them to the FHA 203(k) Rehabilitation loan which allows a refinance and improvements to be made using loan funds. But | more...

March 5, 2021

Questions You Should Be Asking About FHA Refinance Loans

By Bruce Reichstein

Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are low. At press time, the rates in March of 2021 are rising, but FHA mortgage loan rates have up to this point still remained below the three percent line, so it’s still a good idea to consider your refinance loan options if you want a lower interest rate. Remember, rates are subject to change and in 2021. We’re going to see a LOT of rate changes if current indicators provide any clues to the future or mortgage loan interest rates. Mortgage loan interest rates last year back in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other | more...

February 16, 2021

Refinancing Your Mortgage With An FHA Loan

By Joe Wallace

If you have been looking at home loan interest rates in 2021 and considering your refinance loan options, it’s a good idea to take some steps that will help you get closer to refi loan approval. Borrowers who need or want to refinance should shop around for their new loan, and get all the information possible about how much their refinance loan will cost over the loan run and up front. Addressing Credit Issues Before applying for ANY loan, refinance or not, review your credit report in detail. You may have credit problems associated with the pandemic, there may be COVID-19-related factors in your credit that can be accounted for as a one-time problem created due to circumstance. And the Federal Trade Commission advises borrowers that such unique issues will | more...

February 2, 2021

On Buying Real Estate Sight Unseen With An FHA Mortgage

By Joe Wallace

Would you buy a house without having personally walked through it? In the era of COVID-19, there are increased numbers of transactions where the buyer and seller negotiate the sale of a home and close the deal without the buyer ever having physically set foot on the property. This practice is known as buying a house, “sight unseen” and the housing market website Redfin.com reports that for the year 2020, almost two thirds of those who bought real estate in 2020 had not seen the property in person. What does Redfin make of “the highest share since at least 2015″, according to a Redfin-commissioned survey in November and December”. That survey consisted of more than 1,900 homebuyers across 32 major markets, “up from 32% a year earlier, and 45% in | more...

January 29, 2021

Foreclosure Relief Advice From The FDIC

By Joe Wallace

The Federal Deposit Insurance Corporation or FDIC is the federal agency that is responsible for insuring public confidence in the American financial system. The agency issues advice and warnings to consumers (among many other things) to help them avoid scams and fraud associated with lending and banking. HUD recently announced extended foreclosure relief for borrowers affected by the global coronavirus pandemic. It’s a sad fact, but true, anytime home owners need mortgage relief the scammers begin coming out of the woodwork. And that has definitely been true in the past year with COVID-19-related scams, fraud, identity theft, etc. It is true that the lowest of the low prey upon families in need during times of national crisis, but you can avoid getting scammed. Follow the FDIC’s advice on how to | more...