April 7, 2011
What is a No-Cost FHA Refinancing Loan?
FHA refinancing loans come in many different types. One of those is
Articles Tagged With: FHA Refinance Options
March 29, 2011
FHA Refinancing Loans-Rule Clarifications
In February of 2011, the FHA released clarification to its rules covering FHA Streamline Refinancing Mortgages, designed to be implemented 60 days from the issuance of FHA Mortgagee Letter 2011-11, sent on February 14, 2011. The FHA clarified rules for the Streamline Refinancing Loan, which previously had language requiring specific, tangible benefits to the borrower such as a reduction in interest rates or monthly mortgage payments. There is still a requirement for FHA Streamline Refinancing Loans to have a specific benefit to the borrower, but the FHA
March 25, 2011
FHA Refinance Loans–Can I Include Closing Costs Into a Streamline Loan?
FHA Mortgagee Letter 2011-11 issued several changes and policy clarifications to refinancing loans. FHA borrowers with existing mortgages should be aware of these changes as they can affect a borrower’s planning when it’s time to consider refinancing a home with streamline or cash-out FHA loan products. One of the changes, scheduled to take effect in mid-April 2011, alters the way closing costs, pre-paid items, discounts and other items are paid for during some types of FHA refinancing. According to the new FHA guidelines, “The mortgagee may not add closing costs, discount items, prepaid items, or other financing costs to the new loan balance.” This applies to borrowers who seek “Non-Credit Qualifying Streamline Refinances” like an FHA Streamline loan. The policy also states, “As a means of controlling risk to FHA
January 24, 2011
FHA Loans and Foreclosure: Are You In Danger?
The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.
January 13, 2011
FHA Streamline and No Cash-Out Refinancing: Basic Rules
FHA Refinancing loans are more popular than ever thanks to the need many homeowners have to lower interest rates and monthly payments. Non-cash out refinancing includes both Streamline and non-Streamline FHA loans. Each one has its own restrictions and requirements. As with all FHA refinancing loans, the FHA does not require the borrower to pay the current month's mortgage payment prior to closing the loan. The FHA adds, "nor will be the principal balance of the existing loan be reduced by the amount of that unpaid principal."
January 12, 2011
FHA Refinancing: Basic Rules for Cash-Out Loans
FHA refinancing loans are excellent options for those who want to lower their interest rates, monthly payments or take advantage of the equity built up in the property. There are two basic kinds of FHA refinancing options for qualified borrowers. The FHA defines the two in the simplest terms as "cash out" and "no cash out". For cash-out refinancing there are two "tiers" a borrower can consider. One is for a refinancing loan limited to 95% of the value of the home as appraised.