Articles Tagged With: FHA Refinance Loan Rules

March 13, 2017

FHA Refinance Loans: Cash-Out, Rehab

Are you thinking about refinancing into an FHA loan from an existing non-FHA mortgage? Do you already have an FHA mortgage and want to refinance? There are options under the FHA loan program for both, including the possibility of applying for a refinance loan to repair the property or add improvements to it. FHA refinance loans are intended for all financially qualified borrowers regardless of their current loan, whether it is an existing FHA, conventional, VA, or other non-FHA mortgage. FHA refinance loan options include cash-out, no cash-out, rehab mortgages, and streamline refinancing. FHA Streamline Refinance loans are intended for those with existing FHA mortgages and have no FHA-required appraisal or credit check. The lender may require both, but the FHA loan rules in HUD 4000.1 allow participating lenders to | more...

March 15, 2016

FHA Refinance Loan Basic Requirements

By Joe Wallace

FHA refinance loans offer a variety of options for the borrower. In many cases you don’t have to have an existing FHA loan in order to refinance into one; with certain types of FHA refinancing you do have to have an FHA loan. There are cash-out refinance loans available, no-cash-out, and streamline refinances available. Do you know which one is right for you? FHA loan rules found in HUD 4000.1 list the available types of refinancing available, as well as the borrower eligibility requirements, on page 126. It begins by stating: “FHA insures several different types of refinance transactions: 1. No cash-out refinances of FHA-insured and non FHA-insured Mortgages are designed to pay existing liens. These include: Rate and Term refinance, Simple Refinance, and Streamline Refinance. 2. Cash-out refinances are | more...

February 24, 2016

FHA Refinance Loan Types

By Joe Wallace

Do you want to refinance your home loan into an FHA mortgage or refinance an existing FHA mortgage? There are many different types of refinancing options and when HUD 4000.1, the new single family FHA loan rulebook was published in 2015 the entire refinance loan program rules were included in the new volume. That means some policies were updated, some were changed or modified, and some were simply restated. HUD 4000.1 has a comprehensive list of the different types of FHA refinancing options open to those with single-family mortgages. Let’s examine them: FHA Cash-Out Refinancing A Cash-Out Refinance is described in HUD 4000.1 as, “a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in which the mortgage proceeds are not limited” to specific purposes. | more...

January 28, 2015

Chapter 13 Bankruptcy and FHA Refinance Loans: A Reader Question

By Joe Wallace

A reader asks, “Is It possible to refinance while in chapter 13 for a lower rate. We Don’t qualify for the government HARP program.” FHA loan rules for getting new loans when it comes to bankruptcy allow the lender to exercise some discretion depending on circumstances, but depending on the type of bankruptcy a borrower may also need the court’s permission to apply. Borrowers in Chapter 13 bankruptcy have some options according to HUD 4155.1 Chapter Four Section C which states: “A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that –one year of the pay-out period under the bankruptcy has elapsed –the borrower’s payment performance has been satisfactory and all required payments have been made on time, and –the | more...

March 11, 2014

FHA Refinance Loan Basics: Purposes of the Loan, Limits, and Loan Terms

By Joe Wallace

FHA loan rules permit the refinance of mortgage loans under a variety of circumstances. Borrowers applying for some types of FHA refinancing can go from conventional to FHA, from adjustable rate mortgages to fixed rate, and for those with existing FHA loans, an FHA-to-FHA streamline refinance is also possible. Chapter Three of HUD 4155.1 is where the basic rules covering refinance transactions can be found. Chapter Three begins by stating the basic purposes of a refinance loan which include the following: “A refinance transaction is used to pay off an existing real estate debt with the proceeds of a new mortgage • for borrower(s) with legal title, and • on the same property. Note: The borrower is eligible to refinance the loan, as long as he/she has legal title, even | more...