Articles Tagged With: FHA Refinance

FHA Home Loans And The Biggest Credit Mistake You Can Make

December 16, 2024

FHA Cash-Out Refinance Loan Rules You Should Know

What should borrowers know about FHA cash-out refinance loans? If you are thinking of cashing in on the equity built up in your home in 2025, there are some important details to know before you get started. There are a few rules to keep in mind, but some of the most important include how you can use the proceeds of a cash-out refinance loan and the rules the lender follows when verifying the borrower’s eligibility for a cash-out loan. Borrowers may wish to pay off credit card debt with an FHA Cash-Out refinance loan, or use the money to pay off nuisance debt, buy a car, go on vacation, etc. What are the rules for FHA cash-out refinance loans and the money back to the borrower? How To Use FHA | more...

October 18, 2024

When Can I Refinance An FHA Loan?

By Bruce Reichstein

When can I refinance an FHA loan? That is a common question and one that is addressed in the FHA loan handbook, HUD 4000.1. There are rules that govern how and when you can refinance your home loan and those rules will vary depending on the type of refinance loan you seek. Most FHA home loans, including refinance loans and even reverse mortgages, require occupancy as a condition of loan approval. In the case of FHA Cash-Out Refinance loans, occupancy is necessary for at least one year before the new loan. From HUD 4000.1: “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 as their Principal Residence for the 12 months prior to the | more...

September 12, 2024

Need An FHA Refinance Loan?

By Joe Wallace

What do you need to know about FHA refinance loans? If you are considering your options and aren’t sure about some aspects of the FHA refinance process, you may find some answers to your questions below. FHA Refinance Loan FICO Score Requirements FHA refinance loans typically require credit checks and appraisals. There is one exception. There is no FHA requirement for either when you are applying for an FHA Streamline Refinance mortgage. If you need to refinance but worry about your ability to qualify for an FHA mortgage due to credit issues or other problems? Contact the FHA directly at 1-800 CALL FHA. Request a referral to a local, HUD-approved housing counselor who can assist you with planning, budgeting, and other important credit application issues ahead of any purchase or | more...

August 14, 2024

The Credit Check For FHA Cash-Out Refinances

By Bruce Reichstein

Is the credit check for an FHA cash-out refinance loan the same as for a new purchase home loan? Borrowers want to know how their credit will meet lender standards when applying for a refinance loan. Some make the same common mistakes in the months leading up to a refi loan application that others do when applying for a new purchase home loan. What can you do to increase your chances at refinance loan approval? Treat An FHA Cash-Out Refinance Loan The Same As Your Original Mortgage FHA cash-out refi loans require a new credit check and a new appraisal. The new appraisal ensures you are getting the value of your home that market values currently reflect. When rising property values may increase your potential cash out, the appraisal ensures | more...

August 13, 2024

FHA Refinance Options: No Cash Out

By Joe Wallace

FHA “no cash-out” refinance options can help first-time home buyers and experienced homeowners alike. If you need to explore your options to lower interest rates, shorten a loan term, or switch to a fixed-rate mortgage, consider the options discussed below. FHA No-Cash-Out Refinancing The FHA no-cash-out refinancing option is right when you want to modify the terms of your existing loan without getting cash at closing. Refinancing into a fixed-rate, no-cash-out FHA loan is suitable for many when interest rates are at or below the rates the borrower initially qualified for. Refinancing into a fixed-rate loan from an adjustable-rate mortgage can make for a more predictable loan, even if the rate isn’t as competitive as you might like. Having a rate that will not change or will not change again | more...

July 22, 2024

Refinancing A Conventional Loan To FHA

By Joe Wallace

Do you need to refinance out of an adjustable-rate conventional loan? Do you want a potentially lower mortgage rate? Do you need to take equity out of your home in cash? Refinancing from a conventional mortgage to an FHA loan can offer several advantages for borrowers with such financial needs and goals. The advantages include the possibility of qualifying for lower interest rates than some conventional loans and getting a more predictable mortgage when refinancing out of a traditional or FHA ARM into an FHA fixed-rate loan. You can also use an FHA cash-out refi for debt consolidation or tap into your house’s equity. Qualifying For An FHA Refinance Loan To be eligible for an FHA refinance loan, there are requirements similar to some purchase loans: Costs Associated with FHA | more...

May 21, 2024

Five Tips About FHA Mortgage Loan Interest Rates

By Joe Wallace

FHA mortgages feature lower interest rates than conventional mortgages thanks to being backed by the U.S. government. And while mortgage rates in 2024 are higher than in years past, FHA borrowers may still qualify for a rate that’s lower than some conventional equivalents. Those who qualify for the lowest down payment save money over the lifetime of their mortgages thanks to the lower rates, but how do you qualify for the lowest rate possible for your specific purchase? Here are some important tips about mortgage loan interest rates you should know in the planning stages of your new home loan. Credit Scores And Interest Rates Are Connected That statement does not pertain to the overall interest rate offered to all borrowers. Your lender will offer you a mortgage loan rate | more...

September 8, 2023

Buying A Home With A Refinance Strategy

By Joe Wallace

For some, buying a home in 2023 is a bad idea. At least, that is the impression some get when looking at today’s high interest rates in the third quarter of the year. Some compare these numbers to the rates available a year or two ago and wonder why they should consider buying a house in today’s market. Saying no to an FHA home loan in these circumstances could be the right answer for those without a refinance strategy to help them get out of today’s higher rates as soon as lower interest rates are offered consistently. But what about those who think long-term and have a strategy to refinance their home loan as soon as it’s feasible? FHA Loans And Housing Market Competition Major news outlets reported mortgage loan | more...

August 21, 2023

Buying A Home In Today’s Market

By Joe Wallace

In August of 2023, many news outlets reported a competitive American housing market with high demand and low inventory still influencing the market. Low inventory today could be partly the result of many house hunters purchasing homes while home loan interest rates were low and hanging onto the property for the long haul. There are other factors, but for most home buyers, a central issue is today’s high interest rates and how much that will affect the overall cost of the loan. What do you need to know about home buying in today’s housing market? Refinancing When Rates Fall Do you need to buy now? If you cannot wait to purchase property and aren’t inclined to sell or get a cash out refinance option, there are other ways to reduce | more...

August 10, 2023

How Long Does It Take To Refinance Into A Lower Mortgage Rate?

By Joe Wallace

In an age of high mortgage loan interest rates, some borrowers don’t have a choice. They have to buy soon and can’t afford to wait out the housing market. Some of these borrowers purchase a home with the goal of refinancing as soon as the rates fall to a better place. At press time in 2023, those rates have NOT fallen to a better place, buying now and refinancing later is an option getting more popular by the day, or so it seems. Planning Ahead Is Key Borrowers approved for FHA mortgages at the higher interest rates available at press time are wise to consider a refinance loan once home loan interest rates have fallen again but they aren’t always sure what the best options are. And more importantly to | more...