Articles Tagged With: FHA Refi

April 17, 2018

Streamline Refinance Loan Rules: Is Cash Back Permitted?

Do FHA Streamline Refinance Loans permit cash back to the borrower? Can you apply for “more” refinance loan than you need to pay off the original mortgage and take that cash at closing time? The FHA Streamline Refinance loan is for existing FHA mortgages; borrowers who have an FHA loan who want to refinance in order to get a financial benefit such as a lower payment, shorter loan term, or get out of an adjustable rate mortgage should consider this as an option. But is one of the financial benefits offered the ability to get cash back? FHA refinance loan options do include cash-out refinancing, intended for FHA and non-FHA loans alike. Let’s examine what the FHA loan handbook, HUD 4000.1, has to say about cash back to the borrower | more...

April 17, 2018

FHA Streamline Refinance Loans: Tangible Benefits

By Joe Wallace

What are the tangible benefits of an FHA Streamline Refinance Loan? Believe it or not, that phrase is not just a clever way to say “Streamline refinance loans can help you lower your payments.” The phrase “tangible benefits” is found in the FHA loan handbook to describe an outcome of getting the loan. “Tangible benefits” means some distinct help for the FHA Streamline Refinance loan borrower in the form of a lower mortgage rate, a lower monthly payment, the ability to get into a fixed rate mortgage and out of an adjustable rate loan, etc. In most cases an FHA Streamline refi is meant to give the borrower one or more of these benefits. In fact, HUD 4000.1 has specific instructions to the lender on this issue; “The Mortgagee must | more...

April 3, 2018

More FHA Refinance Loan Tips

By Joe Wallace

There are many FHA refinance loan tips you should know when planning and saving for your new loan. Refinance loans guaranteed by the FHA feature fixed or adjustable rates, can offer cash back to the borrower, and also come as a no cash-out option for both FHA and non-FHA mortgages. FHA Refinance Loans Have No Down Payment, But Do Have Closing Costs You won’t make a down payment on an FHA refinance loan, but there are associated closing costs with the loan you will need to budget and save up for. The LTV for an FHA refinance loan varies depending on the type of refinancing you seek; talk to your lender about the expenses associated with your refinance loan so you can save accordingly. FHA Loans Do Not Require Private | more...

April 2, 2018

FHA Refinance Loan Top Five Tips

By Bruce Reichstein

There are many things you’ll need to know if you are applying for an FHA refinance loan for the first time. Do you know what your options are to refinance? If you have an existing FHA or non-FHA loan, it is possible to refinance into an FHA mortgage with a fixed or adjustable rate, with cash back to the borrower or without cash back. Your refinance loan options are more diverse than you might think. 5. Refinance Your Home Loan With Your Current Lender OR Find A New Financial Institution Refinancing into an FHA mortgage does NOT require you to stay with your current bank. Any participating lender willing to work with you can process your FHA refinance loan paperwork. You are not required to use the original lender to | more...

March 28, 2018

More FHA Home Loan Options For New And Returning Borrowers

By Bruce Reichstein

In our last blog post we discussed some basic FHA home loan options for those who want to buy or refinance a home. More FHA loan options for new and returning borrowers alike include FHA fixed-rate and adjustable rate financing, FHA condo loans, and more. FHA Home Loan Interest Rate Options FHA home loan interest rate options are not the same at all participating lenders. Depending on both your own personal financial qualifications and lender requirements, it may be possible to apply for a fixed rate 15-year or 30-year mortgage, or for an FHA Adjustable Rate Mortgage (ARM) in the same terms. All FHA loans are generally required to amortize within the terms of the loan agreement and FHA loan rules. At the time of this writing, HUD 4000.1 states, | more...

March 20, 2018

Property Flipping And FHA Home Loan Rules

By Joe Wallace

What do you need to know about property flipping and FHA home loan rules? The first thing to know is that flipping is addressed in the FHA loan handbook, HUD 4000.1 and there are measures in place to discourage the practice. That said, the rules which prevent flipping usually apply to the buyer’s side of the transaction. FHA loan rules don’t forbid a borrower from selling the home purchased with an FHA mortgage at any time. But the rules do have something to say about FHA mortgage approval for “flipped” homes. How FHA Defines Flipping Not all homes that are purchased and end up back in the housing market fairly quickly will meet the FHA definition of a flipped house. HUD 4000.1 defines flipping on page 145, stating: “Property Flipping | more...

March 14, 2018

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

By Joe Wallace

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...

March 8, 2018

What Goes Into Your FHA Mortgage Payment?

By Bruce Reichstein

What goes into your FHA mortgage payment? It’s easy to assume that you’re paying principal and interest, divided by the number of months you are obligated to on the mortgage note. But is that really all that goes into your monthly mortgage bill? The short answer is no, there’s more to it than that. FHA Loan Rules For Debt-To-Income Ratios HUD 4000.1, the FHA single family home loan handbook, has instructions for the lender to help determine a borrower’s credit-worthiness. The lender doesn’t just calculate the amount of your income versus how much debt you have going out on a monthly basis-that debt ratio has to be calculated with and without the mortgage payment to see what percentage of your monthly income is taken up by debt. The formula is | more...