Articles Tagged With: FHA Refinance Options

August 12, 2019

Why Consider An FHA 203k Rehab Loan

Why consider a 203k FHA Rehab Loan for buying or refinancing a property that needs repairs? For some the answer is simple. Some house hunters may be looking for a project home to customize. Others may be home owners who want to refinance to make upgrades and renovations to the home. The FHA 203k Rehab Loan and Refinance Loan option is a good one to explore. Some are tempted to make home improvements with a credit card rather than a mortgage or refinance loan; this might work for those who already own the home, but it’s important to compare the costs of financing such projects versus putting them on a credit card. Anyone who is house hunting and finds a property they like but won’t meet building code and/or minimum | more...

June 13, 2019

FHA Refinance Rules

By Bruce Reichstein

Mortgage loan interest rates have hit long-term lows according to recent headlines and that is driving more people to consider refinancing their mortgages to take advantage of those rates. There are FHA home loan refinance rules you need to know going into the refi process that will help you get closer to loan approval-do you know what they are? FHA Refinance Loan Rules: No Cash Back Unless You Apply For Cash-Out Refinancing Like new purchase home loans, unless you specifically apply for an FHA cash-out refinance loan, you won’t be permitted to take cash back on the transaction except in the form of refunds. FHA rehab loans that provide money for improvements to the home must be used in specific ways and cannot simply provide funds for the borrower that | more...

June 7, 2019

Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

By Joe Wallace

FHA 203(k) mortgages are different than a typical home loan for a new or existing construction home. These loans allow you to buy and renovate a property that would not necessarily meet FHA loan standards as-is. These loans are often called fixer-upper loans, rehab loans, etc. FHA rehab loans are available as both new purchase loans and refinance loans, you can use the loan for a property you already own or to buy a fixer-upper to begin working on. Rehab loans should not be confused with FHA Construction loans, construction-to-permanent mortgages sometimes referred to as FHA One-Time Close mortgages. The two types of loans can be similar in some respects, including the FHA minimum standards and construction requirements where the approved renovation work is concerned. And yes, the work you | more...

December 10, 2018

On Buying A Home With An FHA Mortgage

By Joe Wallace

An FHA mortgage is not limited to those who are house hunting for the first time. FHA mortgages (and refinance loans) are open to all who financially qualify with FICO scores and other financial considerations. FHA mortgages are not restricted to first-time home buyers. FHA Loans: Backed By The Federal Government There are several government home loan programs; VA home loans, USDA mortgages for rural areas, plus FHA mortgages. FHA loans are government-backed to help borrowers buy affordable homes with a lower down payment requirement than conventional mortgages. Search the Internet and you’ll find (best-execution) mortgage loan interest rates all over the internet for FHA, VA, and conventional loans. In general government backed loans have a lower best execution rate and while interest rates fluctuate daily, FHA mortgages traditionally offer | more...

November 28, 2018

Can I Refinance With An FHA Loan?

By Joe Wallace

Need to refinance your loan with an FHA mortgage? Depending on what type of property you are refinancing, you may be eligible for an FHA refinance loan for cash out, a rehab loan refi, or even an FHA-to-FHA Streamline refinance loan with no FHA-required credit check. One of the most important factors in determining if you can refinance with an FHA loan is the reason why you wish to refinance. Those who want to get a lower interest rate on an investment property, for example, would be ineligible to apply for an FHA Single Family Refinance Loan as these loans are restricted to owner/occupiers only. Those who want to switch from a conventional home loan to an FHA mortgage loan would be permitted to apply if they are using the | more...

FHA Home Loans: Things To Do, Things Not To Do

October 29, 2018

Five Uses For FHA Refinance Loans

By Bruce Reichstein

Need to know your FHA refinance loan options? There are many good uses for an FHA refi loan including using cash-out refinance options to reduce existing debt or make a large future purchase to help with school, a job, etc. #5: FHA Refinance Loans Can Be Used To Get A Lower Interest Rate FHA interest rates are negotiated between borrower and lender. The rate you are offered with an FHA mortgage may be lower than conventional rates, so if you currently pay on a conventional mortgage it is a very good idea to ask a participating FHA lender how you may be able to get a better rate. Home loan interest rates offered to you are dependent in part on your credit, but don’t assume just because you have had | more...

September 19, 2018

Sell Or Refinance With An FHA Loan?

By Joe Wallace

Which is the better option? Sell your home, or refinance your mortgage loan with an FHA refinance loan? Your financial needs and goals will determine part of the answer to this question, the nature of the housing market and how much you still owe on your mortgage loan will help inform the answer, too. FHA Refinance Loan Options For Those Considering Selling Their Property You can sell the home you’re currently in, or refinance it with an FHA cash-out refinance loan or an FHA rehab loan if you want to use FHA mortgage loan funds to repair or remodel the property. Why refinance instead of sell? Some borrowers think about selling because they want to move into a larger home. Refinancing isn’t an option for these people…or is it? The | more...

August 9, 2018

When Should I Refinance My Home Loan?

By Bruce Reichstein

When should I refinance my home loan? That is an important question for borrowers who realize they want to cash in on rising property values, commit to home improvements, or get into a lower monthly mortgage payment. FHA refinance loans can help. FHA Refinance Loans For Conventional And Other Non-FHA Mortgages Did you know you can refinance into an FHA mortgage from a non-FHA home loan? Compare interest rates on your existing mortgage to those offered for FHA refi loans to see if it’s to your benefit to refinance. Are you in a conventional adjustable rate mortgage and want to get into an FHA fixed-rate loan? This is an option, too. Fixed rate mortgages are an excellent choice if you decide to remain in the home long-term and want to | more...

June 29, 2018

Remodel Your Home With An FHA Rehab Loan

By Joe Wallace

Are you thinking of selling your home? Need to think about increasing the value of your house before you put it on the market? Or maybe you want to remodel the home you’re planning on staying in long-term and are looking for the best return on investment or ROI for a remodeling project? FHA 203(k) Rehab loans can help you invest good money for a sound ROI on upgrades, improvements, and repairs. You can remodel your home with an FHA 203(k) rehab loan as a new purchase loan or as a refinance loan for your current mortgage. What types of remodeling projects have a good ROI and are allowed under the parameters of the FHA rehab loan program? The answer may depend on whether you apply for a standard or | more...

June 27, 2018

FHA Cash-Out Refinancing Loan Occupancy Requirements

By Bruce Reichstein

FHA cash-out refinance loans are a great way to cash in on the value of your home, but this FHA refinance option has some specific rules about occupancy and how it affects your eligibility for cash out. The FHA loan handbook, HUD 4000.1, begins by explaining that cash-out refi loans are only for owner-occupiers. “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences.” Furthermore, owner-occupiers are the only ones who can have their income counted when it comes time to qualify for an FHA cash-out refinance. “Income from a non-occupant co-Borrower may not be used to qualify for a cash-out refinance.” That’s an aspect of FHA cash out loans that isn’t discussed too often, but it is an important one to know. There are other requirements-in most cases, a | more...