Articles Tagged With: FHA Refinance

March 9, 2017

FHA Mortgage Questions And Answers

There are many questions about FHA loans-those who are new to the process want to know some very basic, but very important things including how down payments are calculated, who is eligible for an FHA loan, and whether the borrower is free to sell the home purchased with an FHA mortgage after buying it, and how soon. Let’s explore some of these questions: Am I Eligible For An FHA Loan? The implication with a question like this sometimes includes another question. “Do I make too much money to qualify?” This is due to a misconception that FHA mortgages are intended only for first-time buyers, the economically disadvantaged, or those who have earnings that fall within a certain range. But the truth is, FHA mortgage loans have no income limits and | more...

March 2, 2017

FHA Refinance Loan Basics

By Joe Wallace

FHA refinance loans bring with them many questions, especially for first time applicants. Here’s a good example, a question asked recently in our comments section: “My husband lost his home to a short sale on his previous marriage. We are currently doing a rent to own, but we hold the deed. They fought the lender, and won, and it was supposed to be taken off of his credit report. Equifax kept it on. His score is 709. Can we refinance our home?” FHA refinance loan rules in HUD 4000.1 state, “A refinance transaction is a new Mortgage for a Borrower with legal title on the same Property with the proceeds used to pay off any existing liens.” If the reader’s circumstances (a “rent to own” arrangement, in this case) meets | more...

February 9, 2017

FHA Loans: Purchase, Rehab, Refinance

By Joe Wallace

FHA loans are a good option to consider, especially if you are looking for an alternative to the comparatively high down payment requirements of many conventional mortgages. But do you know all of your FHA mortgage options? HUD 4000.1, the FHA single family home loan rule book, describes the basic options borrowers can choose from. FHA loans are not just for new purchases-you can apply for a refinance loan, or you can apply to purchase and rehab a property you intend to live in as your primary residence. HUD 4000.1 describes your FHA loan options starting with the most typical FHA mortgage: Purchase Loans and Construction-to-Permanent Loans “The Borrower may finance the purchase of an existing one- to four-unit residence, and may also finance construction of a one- to four-unit | more...

December 21, 2016

FHA Short Refi Loans in 2017?

By Joe Wallace

HUD 4000.1 is the FHA single family home loan rule book. Whether you are purchasing a suburban home, a condo unit, or a mobile home with an FHA mortgage, the rules in HUD 4000.1 pertain to your FHA loan transaction. This set of rules also includes guidance on FHA refinancing loans including a program known as an FHA short refi loan, also called “Refinance of Borrowers in Negative Equity Positions Program”. This program, according to HUD 4000.1, “allows the Mortgagee to refinance a non FHA-insured Mortgage in which the Borrower is in a negative equity position”. That’s commonly known as being “underwater” on a home loan. An FHA short refi requires the lender to “write off at least 10 percent of the unpaid principal balance”. The borrower must be in | more...

October 20, 2016

FHA Refinance Loans: 10 Things To Know

By Joe Wallace

If you are considering your options with an FHA refinance loan, here are ten tips to help you decide which type of refinancing is right for you. FHA Refinancing For Non-FHA Loans Borrowers do not have to be in an FHA mortgage loan already to be eligible for certain types of FHA refinance loans. Your VA loan, conventional, even sub-prime mortgages may be able to be refinanced into an FHA loan. FHA refinance loans feature cash-out and non-cash out options for existing FHA and non-FHA mortgages. Refinancing And Repairs Your FHA refinance loan options include rehab/repair loans under the 203 program. FHA 203(k) and 203(h) mortgages have long been a part of the FHA loan options available from participating lenders. If your home has been damaged in a natural disaster, | more...

How much can I borrow with an FHA refinance loan?

October 13, 2016

FHA Refinance Loans: What Are Your Options?

By Joe Wallace

FHA loans aren’t just for new purchases. You can also apply for an FHA refinance loan for an existing FHA mortgage, a conventional loan, or other types of mortgages depending on the type of refinancing you need. HUD 4000.1 describes the rules for FHA refinance loans, including a basic list of all the types of refinancing available and what they are meant to do for the borrower: -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. -Cash-out refinances are designed to pull equity out of the Property. -Refinances of non FHA-insured Mortgages are available for qualified Borrowers in negative equity positions (Short Refi). -Refinances for rehabilitation or repair (Section 203(k)). That information is | more...

August 17, 2016

Mortgage Rate Trends: Up And Down Before Fed

By Joe Wallace

Mortgage loan interest rates are experiencing another week of ups and downs; on Tuesday rates were unchanged to slightly higher depending on the lender, and all eyes are on Wednesday’s Fed meeting minutes release. This has serious potential to move rates in one direction or the other depending on investor reaction to the contents of those minutes. Most of the current drama in this department has to do with the timing of any proposed Fed interest rate hike or the lack of an indication of same. The potential for another interest rate hike by the Fed creates volatility in the markets that affect mortgage loan rates, so the uncertainty here is a big X factor this week. On Tuesday, 30-year fixed rate mortgages were reported at a best execution 3.5%. | more...

June 29, 2016

FHA Loan Questions: Legal Ownership Of A Property To Be Refinanced

By Joe Wallace

A reader asks, “I have a FHA loan that I received with my ex wife we have been divorced for approx. 7 years. Due to the amicable nature of the divorce we did not specify that I would keep possession of the house, we have a gift of deed.” “But the mortgage company says I can not refinance because there is no clause in the divorce decree about house ownership transfer. Wouldn’t the deed of gift be a legal binding document to prove ownership?” FHA loan rules found on page 126 states, “A refinance transaction is a new Mortgage for a Borrower with legal title on the same Property with the proceeds used to pay off any existing liens”. We don’t give out legal advice or opinions here as it’s | more...

June 7, 2016

FHA Reverse Mortgage Questions And Answers

By Joe Wallace

The FHA reverse mortgage, also known as a Home Equity Conversion Mortgage, is a special type of FHA mortgage loan. Not everyone can qualify for an FHA reverse mortgage-there are specific age requirements, occupancy requirements, and more. We are often asked about reverse mortgages, here are some of the most commonly asked FHA HECM loan questions and their answers. Who can qualify for an FHA HECM / Reverse Mortgage loan? The FHA reverse mortgage program (HECM loans) is intended for borrowers aged 62 or older who either own their property outright or are very close to doing so. Proof of loan payoff will be required, and all FHA HECM loan applicants will be required to certify that the home securing the reverse mortgage is the primary residence and not a | more...

June 6, 2016

Questions And Answers About FHA Refinance Loans

By Joe Wallace

Refinancing a home loan can be just as big a decision as the original purchase of the home itself. It’s always a good idea to take extra time to plan, budget, and save up for any major loan, and a refinance loan is no exception. If you are considering your options for a home loan refinance, there are likely a number of questions you need answered as you prepare for the new loan. Here is a list of some common questions about FHA refinance loans that can help you get ready for your application. What refinance loan options are available from the FHA? FHA refinance loan options include cash-out and non-cash out refinancing. You can also apply for an FHA Streamline Refinance loan which uses your original application data in | more...