Articles Tagged With: FHA Refinance

January 5, 2018

Why Should I Refinance With An FHA Loan?

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...

December 29, 2017

Get Ready For Your FHA Refinance Loan In 2018

By Joe Wallace

Get ready for your FHA refinance loan in 2018! Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? Or perhaps you want to get out of an adjustable rate mortgage (ARM) and into a fixed rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan. How To Prepare For An FHA Refinance Loan In 2018 Many of the same steps you took for your original home loan application will apply when you begin planning for an FHA refinance loan. You’ll want to pull your credit reports are early as possible in the planning stages, and consider active credit monitoring to | more...

December 27, 2017

Is It The Right Time To Refinance My Home Loan?

By Joe Wallace

Is it the right time to refinance my home loan? The answer to that question depends on a variety of factors, but there are some things to remember no matter when you decide to refinance a home mortgage loan. A September 2017 report by Fortune.com includes data that indicates a general increase in home prices, including the observation of the “65th straight month that prices have risen year-over-year”. That same report mentions that “housing inventory declined for a 26th straight month on a year-over-year basis”. In housing markets where property values are going up, certain kinds of refinance loan options become more attractive. An FHA cash-out refinance loan makes more sense for borrowers who have more equity in the home; cash out refi loans require a new appraisal and if | more...

December 20, 2017

What Is The Difference Between FHA Cash-Out And No Cash-Out Refinance Loans?

By Joe Wallace

What is the difference between FHA Cash-Out and No Cash-Out refinance loans? Aside from the obvious cash out option, there are several important differences in these two types of FHA refinance loans you should know about before you decide which one is right for you. FHA Refinance Loan Occupancy Requirements FHA loans generally require at least one borrower obligated on the loan to occupy the property as the primary residence as a condition of loan approval. But beyond that, cash-out refinance loans and FHA no cash-out refi loans have some other occupancy rules you should know. For FHA Cash-Out refinancing, HUD 4000.1 instructs the lender, “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 | more...

December 19, 2017

FHA Cash-Out Refinance Loan Rules

By Bruce Reichstein

FHA cash-out refinance loan rules include instructions to the lender that these refinance loan transactions can be used for both existing FHA loans and non-FHA transactions including conventional loans, VA mortgages, etc. There are some rules specific to FHA cash-out refi loans you should know about before applying. FHA Cash-Out Refinance Loan Payment History Requirement HUD 4000.1, the FHA loan handbook, states that the lender is required to document a cash-out refinance loan applicant’s payment history on the old mortgage loan. “The Mortgagee must document that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, whichever is less. Additionally, the payments for all Mortgages secured by the subject Property must have been paid | more...

December 19, 2017

FHA-To-FHA Refinance Loan Rules

By Joe Wallace

FHA refinance loan rules include a set of general requirements that may vary depending on whether the mortgage is a non-FHA to FHA refi or an FHA-to-FHA refinance loan. Today we’ll examine some general rules for FHA-to-FHA refinance loan transactions. Who Can Refinance An Existing FHA Mortgage? FHA loan rules in HUD 4000.1 state that at least one borrower obligated on the FHA-to-FHA refinance transaction must hold the title to the property. This must be true before the FHA issues a case number for the mortgage loan. Refinancing A Manufactured Home With An FHA Mortgage HUD 4000.1 instructs the lender, “For a transaction involving a Manufactured Home to be considered a refinance, the Manufactured Home must have been permanently erected on a site for more than twelve months prior to | more...

December 11, 2017

FHA Refinance Loan Options

By Bruce Reichstein

Are you considering your FHA refinance loan options in 2018? There are several different options to choose from depending on your financial needs and goals. What do you want to do with an FHA refinance loan? Lower Your Monthly Mortgage Payments There are FHA refinance loan options that can help lower your interest rate or monthly payments, depending on circumstances. Some borrowers with non-FHA loans want to refinance into an FHA mortgage because of potentially lower interest rates. This is often done with an FHA no-cash out refinance loan option. Whether you will get lower monthly payments on an FHA no-cash out loan depends on several factors including your credit scores, the current amount you are paying on a home loan, and whether you choose to finance certain expenses associated | more...

December 7, 2017

FHA Home Loan Refinance Options in 2018 Explained

By Bruce Reichstein

FHA home loan refinance options in 2018 include a variety of terms. Are you a first-time refinance loan applicant and feeling a bit confused by all the jargon? Here is an explanation of the options you have to refinance your home loan in 2018 using an FHA refi loan. FHA Cash-Out Refinances Defined What is a cash-out refinance loan? According to the FHA loan handbook, HUD 4000.1, cash out refinancing is described 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”. You read that correctly-some participating FHA lenders may approve an FHA cash-out refinance loan on a property that has no existing mortgage, for the purpose of pulling equity out of the | more...

December 6, 2017

FHA Loan Rules For Income Verification: Part-Time Employment Income

By Joe Wallace

Is it possible to be approved for an FHA home loan using part-time employment income? There are indeed FHA loan rules for this type of income and instructions to the lender for how it is to be reviewed. HUD 4000.1, the FHA home loan handbook, states that all verifiable income must meet certain FHA minimum requirements including the ability to verify two years of employment (not necessarily with the same employer). One area some borrowers may be concerned with in this area is part-time income. Does the FHA allow a lender to verify and count as income the earnings from a part-time job? The rules for this are found on page 200 of HUD 4000.1, which begins by defining what the FHA considers part-time income: “Part-Time Employment refers to employment | more...

November 21, 2017

What Kinds Of Property Can I Buy Or Refinance With An FHA Loan?

By Bruce Reichstein

What kinds of property can I buy or refinance with an FHA loan? This is a question we’ve been examining lately, starting with the FHA requirement for homes to be used as the primary residence for at least one person obligated on the mortgage note. But there are other requirements borrowers need to know when looking for a home to buy with an FHA mortgage. Eligible Property Types For FHA Single-Family Loans HUD 4000.1 explains, “FHA’s Single Family programs are limited to one-to four-family Properties that are owner-occupied Principal Residences. FHA insures Mortgages on Real Property secured by: -detached or semi-detached dwellings -Manufactured Housing -townhouses or row houses -individual units within FHA-approved Condominium Projects” The occupancy requirements are identical for all property types. The actual date of occupancy may vary | more...