Articles Tagged With: FHA Refi

June 9, 2015

Why Refinance Your Home Loan?

There are lots of articles and blog posts about refinancing your home loan, but many of these are technical; few of them discuss the reasons it might be a good move to consider applying for an FHA refinance loan. Consider an article written last year by a staff member at Marketwatch.com titled, “Half Of Americans Cant Afford Their House”, which discusses a serious issue among some home owners. According to the article approximately 15 percent of home owners in the United States were said to be in housing markets where the monthly mortgage loan payment ate up more than 30 percent of monthly income. 30 percent is, the article states, the maximum for rent or mortgage loan payments in terms of affordability. Exceeding that 30 percent is not recommended. Home | more...

When Is An FHA Loan Better Than A Conventional Loan?

June 5, 2015

FHA Home Loan Refinancing: What You Should Know Before You Apply

By Joe Wallace

FHA refinancing loans give borrowers many options. Did you know that you do not need to have an existing FHA mortgage loan to take advantage of certain FHA refinance options on your loan? You can change lenders, change the nature of your loan from an adjustable rate to a fixed rate, and add energy-efficient improvements to the loan amount. FHA cash out refinance loans permit non-FHA borrowers to apply for refinance loans on conventional loans. You can refinance your existing FHA or non-FHA mortgage from a fixed rate to a new fixed rate loan, fixed rate to adjustable rate, adjustable rate to adjustable rate, etc. Cash out refinance loans always require a new appraisal, even if your current appraisal is still current. FHA loan rules say you cannot use an | more...

May 20, 2015

FHA Streamline Refinance Loans: A Reader Question

By Joe Wallace

A reader asks, “When an applicant is applying for a refinance under the FHA Streamline and their spouse (co-borrower) has passed (died), does the remaining borrower need to show the six months of payment history before they can apply for a refinance without doing a credit qualification?” FHA loan rules for streamline refinance loans are found in HUD 4155.1 Chapter Six. Section C has a heading titled, “Seasoning Requirement For A Streamline Refinance” which addresses this reader question. It states: “On the date of FHA case number assignment, –the borrower must have made at least six payments on the FHA-insured mortgage being refinanced –at least six full months must have passed since the first payment due date of the refinanced mortgage, and –at least 210 days must have passed from | more...

May 12, 2015

FHA Cash Out Refinancing Loans For Paid-Off Mortgages: A Reader Question

By Joe Wallace

A reader asks, “I have a house paid for and I am looking for a F H A loan for $10 thousand or $15 thousand . According to bankers because I have not bought anything in the past 10 years I have no credit. is it possible to get a loan somewhere?” FHA loan rules printed in HUD 4155.1 Chapter 3 Section B states that it is possible for an FHA cash out refinance loan on a home that has been paid in full. Specifically, the Chapter says: “Cash out refinance transactions are only permitted on owner-occupied principal residences. Properties owned free and clear may be refinanced as cash out transactions”. However, FHA loan standards aren’t the only ones at work in cases like these–the lender’s standards also apply. If | more...

May 8, 2015

FHA Refinance Loans And FHA Case Numbers: A Reader Question

By Joe Wallace

A reader asks, “I bought my home in 2009. Its a FHA mortgage. I do not qualify to refinance because paperwork and case number were assigned after may 1 2009. I need to know what I can do to refinance with a FHA mortgage I need to Lower my payments, smaller interest rate shorten time on contract I feel like im stuck. There has to be a way to get this done.” It’s not clear why this reader believes an FHA home loan isn’t eligible to be refinanced because of the date of the case number–qualified borrowers are free to apply for FHA refinancing for their home loans regardless of the date of the case number, provided a minimum of six months and six mortgage payments have been made. That’s | more...

April 13, 2015

FHA Loan Refinance Rules: A Reader Question

By Joe Wallace

A reader asks, “Hello.. i have a question. We are first time home buyer through FHA loan. How long we can refinance after our purchase?“ The FHA issued a mortgagee letter back in 2011 updating its policies for minimum wait times or seasoning period for borrowers to refinance after the original purchase. The minimum wait time may vary depending on the lender, the type of refinance loan you want to apply for, and other factors. For example, a borrower applying for FHA Streamline Refinance Loans, according to FHA Mortgagee Letter 2011-11, is subject to the following requirements: – The mortgagor must have made at least six payments on the FHA- insured mortgage that is being refinanced, and – At least six full months must have passed since the first payment | more...

April 9, 2015

FHA Cash-Out Refinance Loans: A Reader Question

By Joe Wallace

A reader asks, “Our home is in trust, and my mother-in-law has signed a quit claim deed. My husband was in a hit and run motorcycle accident 3 years ago this coming June. Due to his inability to work for 4 months we struggled with payments and our credit is horrible. We would like to get a loan on our house so we can pay off a home equity loan, and multiple collections.” “Our home is valued at approx. $250,000, and we would like to get a loan for half of that so we can get out of debt and make some improvements to our home. My husband has credit scores of Experian 558, Equifax 517, and Transunion 491. Is it possible to find an FHA lender that would be | more...

March 18, 2015

FHA Refinance Loans With An Appraisal: Some Basics

By Joe Wallace

If you have never applied for an FHA appraisal-required refinance loan before, you probably have plenty of questions about program basics. How long can the new loan be? Can I re-use a previous appraisal? What is the maximum loan amount? The answers to these questions can be found in HUD 4155.1 Chapter Three Section A, which informs us that the longest loan term for any refinance with an appraisal is 30 years. Chapter Three also adds: “The maximum term of a streamline refinance without an appraisal is limited to the lesser of • the remaining term of the existing mortgage, plus 12 years, or • 30 years.” The appraisal question is also answered here, with FHA loan rules stating that FHA appraisals (for existing properties) are good for six months, | more...

February 4, 2015

FHA Loan Reader Questions: Help With an Existing FHA Mortgage

By Joe Wallace

We get many questions about FHA home loans. Some of them come in the form of detailed queries about specifics of a certain FHA loan program, others come as more general questions about the nature or scope of FHA home loans. Here’s one of the more generalized questions that came in recently. A reader asks: “What about help with a current FHA loan? Remodification?” It’s not clear what the reader is getting at with this question, but assuming the reader wants assistance with an existing FHA loan in order to get into a lower monthly payment, the good news is that there is definitely assistance available in the form of FHA Streamline Refinancing. FHA Streamline refinance loans are for borrowers with existing FHA mortgages who want a lower interest rate, | more...

February 3, 2015

Preparing For Your FHA Cash Out Refinance Loan

By Joe Wallace

If you are considering refinancing a home loan using the FHA Cash Out Refinance Loan option, there are a few things to keep in mind about your FHA refinance loan options when you’re planning, budgeting, and saving for the loan. The first thing to remember is that you can refinance an FHA or non-FHA home loan with a Cash Out Refinance loan. FHA loan rules permit this and you don’t have to use the same lender you applied for the original home loan with; shopping around for the most advantageous refinance loan interest rates and terms is always a good idea. That means if your current lender is not a participating FHA lender, you can shop around to find one that does participate in the FHA loan program and is | more...