Articles Tagged With: FHA Refinance Options

August 30, 2017

What Are My FHA Refinance Options?

What are my FHA refinance options? That question, fortunately, has many answers depending on whether you need to refinance an existing FHA mortgage or refinance a non-FHA loan. The options include cash-out and no-cash out refinancing for both FHA and non-FHA loans, plus rehab mortgage options and more. Cash-Out and No Cash-Out FHA Refinance Loans FHA refinancing is possible with cash-out or no cash-out loans no matter what kind of mortgage you currently have-FHA, conventional, VA, or other non-FHA mortgage. Borrowers do not have to stay with the original lender for these refinance loan transactions. You are free to shop for a new participating FHA lender to refinance. Cash-out and no cash-out refinance loans will require a new credit check and appraisal. FHA Streamline Refinancing This type of FHA refinance | more...

August 4, 2017

Why Should I Refinance With An FHA Mortgage?

By Bruce Reichstein

Why should I refinance with an FHA mortgage loan? Many ask themselves this, and oftentimes the answer is good news; lower interest rates, the ability to refinance into a fixed rate loan from an adjustable rate mortgage, or lower mortgage payments. But there are also some FHA refi options for those who need to recover from natural disasters, or who want to rehab their property. Typical FHA Refinance Loan Options Borrowers with existing FHA mortgages have a full range of options including FHA Cash-out Refinance loans, FHA Streamline Refinance loans which can help with lower interest rates and mortgage payments, FHA no cash-out loans, and even reverse mortgages (for qualified borrowers aged 62 or older). Those with non-FHA mortgages may also refinance using cash-out or FHA no cash-out, options. You | more...

Time Is Running Out On Exterior-Only FHA Appraisals

July 24, 2017

Where Can I Refinance An FHA Loan? Part Two

By Bruce Reichstein

Where can I refinance an FHA loan? We’ve been exploring FHA refinance topics in recent blog posts, and this common question is definitely an important one. Why? Because depending on your refinance needs, you may need to shop around for a lender who will offer the type of loan best for your financial goals and needs. FHA refinance loans for existing FHA mortgages are sometimes referred to as “FHA-to-FHA refinancing”, which simply means that you’re going from one FHA loan to another. One misconception about refinance loans is that you would need to stay with the original lender in order to refi FHA-to-FHA, but this is not true. You are free to shop around for a new participating FHA lender to refinance your mortgage. You are also free to explore | more...

July 20, 2017

What Is An FHA Streamline Refinance Loan?

By Bruce Reichstein

What is an FHA streamline refinance loan? This type of refinance loan option is intended for borrowers who have existing FHA mortgages and want to refinance into a lower interest rate or monthly payment. Streamline refinance loans allow the borrower to apply with no FHA-required appraisal or credit check. Your lender may require one or both, but the FHA allows the option to apply without such requirements. That’s a unique feature-FHA streamline refi loans allow the lender to use the borrower’s existing credit and appraisal data to approve the loan. This type of borrowing can be a major advantage for the home owner who has financial goals that include lower monthly payments. How Streamline Refinance Loans Work The FHA loan handbook, HUD 4000.1, describes streamline refinancing as follows: “Streamline Refinance | more...

July 19, 2017

Who Can Refinance An FHA Loan?

By Bruce Reichstein

Who can refinance an FHA loan? There are rules and requirements for refinancing an FHA mortgage loan that include prohibitions to ensure fair lending, but also restrictions on who may refinance depending on the status of the applicant as a borrower or co-borrower on the original loan. The rules that govern who can refinance an FHA loan, and how it may be done, are found in the FHA handbook, HUD 4000.1. There, we learn: “A party who has a financial interest in the mortgage transaction, such as the seller, builder or real estate agent, may not be a co-Borrower or a Cosigner. Exceptions may be granted when the party with the financial interest is a Family Member.” Furthermore: “To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take | more...

July 18, 2017

How Do You Refinance An FHA Loan?

By Bruce Reichstein

How do you refinance an FHA loan? There are some important questions to answer before getting to the actual application process-questions that can help you narrow down the right kind of FHA mortgage refinance loan for you. Examining Your Financial Goals and Needs FHA refinance loans come in a variety of types designed to fit different financial needs. Are you looking for a refinance loan that will lower your monthly mortgage payments? Do you need to take cash back on the refinance loan transaction? Depending on circumstances, those two issues may or may not be mutually exclusive. FHA refinance loans do offer the ability to get into a lower payment or interest rate, but getting cash back likely involves a different kind of FHA refinance loan. Deciding what result you | more...

FHA Loan Approval and Late or Missed Housing Payments

July 10, 2017

When Is An FHA Loan A Good Idea? Part Two

By Joe Wallace

When is an FHA loan a good idea? There are plenty of new purchase options, but those who have existing home loans and want to refinance into lower payments or interest rates should also explore their FHA mortgage options. FHA Loans Are For Those Who Want To Refinance FHA Loans Borrowers with existing FHA mortgage loans should consider the FHA Streamline Refinance loan option. This type of FHA refi loan does not offer money back to the borrower (except for refunds of money paid up front for things that later get financed into the loan amount) but does require a benefit to the borrower in one of several forms: A lower monthly payment A lower interest rate A fixed rate (when refinancing out of an adjustable rate mortgage loan) There | more...

July 10, 2017

When Is An FHA Loan A Good Idea?

By Bruce Reichstein

When is an FHA loan a good idea? The answer depends on what you’re looking for from a home loan. Some borrowers are exactly right for an FHA mortgage, others may need another alternative. Is an FHA loan right for you? FHA Loan Occupancy Requirements Most FHA single family home loans require occupancy. The lender will ask you to certify in writing that you intend to occupy the property as your primary residence and not as a vacation home or other occasional occupancy type situation. Borrowers are free to purchase homes with up to four units and rent out the unused living units, but at least one borrower must occupy the home as her or his primary residence (usually within two months of loan closing). So if you are looking | more...

July 3, 2017

What Is An FHA Cash-Out Refinance Loan? Part Two

By Joe Wallace

What is an FHA cash-out refinance loan? These types of loans are designed to help the borrower draw equity out of the property being refinanced. Once the original loan is paid off, and the new loan’s fees are covered, the remaining cash comes back to the borrower for any purpose acceptable to the lender. Cash Back, LTV Limits FHA cash-out refinance loans are different than FHA Streamline Refinance loans, which are restricted to FHA-to-FHA transactions and don’t allow any cash back except refunds. FHA cash-out refi loans are “appraisal required” and feature an LTV limit. That limit is 85% of the adjusted value of the home. There is also a mortgage limit found in the cash-out refi rules in HUD 4000.1: “The combined mortgage amount of the first Mortgage and | more...

July 3, 2017

What Is An FHA Cash-Out Refinance Loan?

By Bruce Reichstein

What is an FHA cash-out refinance loan? Simply put, FHA cash-out refinancing lets a borrower pay off the original mortgage and use the cash left over for any purpose acceptable to the lender. The new mortgage will be a standard term (15 or 30 years) and FHA cash-out refinance loans can refinance FHA-to-FHA, conventional-to-FHA, or any other non-FHA mortgage acceptable to the lender. The definition of an FHA cash-out refinance loan as found in the FHA single family mortgage loan handbook, HUD 4000.1, states that cash-out refinancing can also be used to take equity out of the home where no mortgage currently exists. According to page 406 of HUD 4000.1: “A Cash-Out Refinance is a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in | more...