Articles Tagged With: FHA Cash-out Refinance

March 14, 2018

Who Can Apply For FHA Cash-Out Refinancing? What You Need To Know

Who can apply for FHA cash-out refinancing? Believe it or not, the FHA loan handbook, (HUD 4000.1) has guidelines in this area you should know. Some home owners purchase their homes and choose to refinance. But others might inherit their property and decide at that time to explore their cash-out refi loan options. What does the FHA have to offer? FHA Cash-Out Refinance Rules-The Basics FHA cash-out refi loans have an ownership and occupancy requirement; not just anyone can apply for an FHA cash-out refinance loan. HUD 4000.1 instructs the lender: “Nonprofit agencies, state and local government agencies and Instrumentalities of Government are not eligible for cash-out refinances. Income from a non-occupant co- Borrower may not be used to qualify for a cash-out refinance.” That seems basic enough, but this | more...

Rehab Refinance Loans, reverse mortgages

March 14, 2018

Reasons To Refinance With An FHA Mortgage

By Bruce Reichstein

Reasons to refinance your home loan with an FHA mortgage vary as much as the types of homes you can purchase with an FHA loan. Is now the right time to examine your refi loan options and start planning for your new loan? You might be ready for an FHA refinance option if one or more of the following applies to you. Refinance Loans For Those Who Want A Lower Interest Rate Depending on the nature of your original home loan, FHA refi loans could help you save money over the lifetime of your mortgage loan with lower interest rates. One thing that’s easy to overlook about the interest rate options available with FHA loans; what you are offered will depend at least in part on FICO scores and other | more...

FHA Mortgage Loans: Do Interest Rates Matter?

March 13, 2018

When Should I Refinance With An FHA Mortgage?

By Joe Wallace

When should I refinance with an FHA mortgage? That is a question many home owners face, especially if their financial plans have changed from the ones the borrower had when closing the original mortgage. Do you know if it is a good time to refinance? If you need lower payments or interest rates, and are credit-qualified to receive those lower rates, it may be the right time to explore your options. FHA Refinancing For Borrowers In Adjustable Rate Mortgages Some FHA borrowers buy a home with an adjustable rate loan, either thinking they will sell before the introductory rate ends (or before the rates are adjusted beyond a certain threshold) or refinance the loan at some later date. FHA ARM loan adjustments may be more conservative than some conventional loan | more...

February 20, 2018

Should I Refinance With An FHA Mortgage?

By Bruce Reichstein

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 22, 2018

FHA Loans And Cash Back At Closing

By Bruce Reichstein

FHA loans and cash back at closing-many borrowers want to know if they can take cash out on an FHA mortgage loan and the answer isn’t as simple as yes or no. FHA home loan rules allow cash back as a routine part of the transaction for FHA Cash-Out Refinancing and for FHA Home Equity Conversion Mortgages (HECM) also known as FHA Reverse Mortgages. In general terms, the borrower is not permitted cash back on “forward mortgages” used to buy property rather than refinance it. A borrower is permitted to have an escrow account for certain mortgage loans that allow payouts to contractors or for the purchase of materials, supplies, and other required items for renovation, upgrades, or construction. But that isn’t the same thing as cash back to the | 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...

January 16, 2018

What Is The Interest Rate For FHA Refinance Loans?

By Joe Wallace

What is the interest rate for FHA refinance loans? This is an important question since your interest rate will affect the overall cost of your refi loan over time, and it’s good to know how rates work before you apply for a new home loan. FHA mortgage loan and refinance loan interest rates have a variety of factors that affect how they are determined for your loan. There is no single determining factor that allows a lender to give a single rate to all applicants-your interest rate is determined based on application data, market forces, and other factors. Does The FHA Set Interest Rates On FHA Refinance Loans? The FHA and HUD do not set or regulate FHA mortgage loan and refinance loan interest rates, except to require that the | more...

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...

January 5, 2018

Why Should I Refinance With An FHA Loan?

By Joe Wallace

Why should I refinance with an FHA loan? There are many reasons why you might need or want to refinance into an FHA mortgage. Much depends on your financial needs and goals, and it’s good to know your options for FHA refinancing as you explore the finer points of refinance loans. FHA Refinancing For FHA and Non-FHA Mortgages The FHA refinance loan program has options for both existing FHA and non-FHA mortgages alike. You may also be able to get FHA financing on a property that has no existing mortgage. Talk to a participating FHA loan officer about this option. FHA refinance loan options include cash-out, no cash-out, and more. You don’t have to take cash back on an FHA refinance loan, but if you want a cash-out refinance loan | more...