Articles Tagged With: FHA Refinance Options

June 23, 2017

What Is An FHA Refinance Loan?

What is an FHA refinance loan? Do you know all your refinance options under the FHA loan program? There’s more than one way to refinance a home and the refi option you choose depends a lot on your financial needs and goals. You may find that refinancing into an FHA mortgage brings a lower interest rate, lower monthly payments, or cash back to you depending on the transaction. FHA Refinance Loan Basics FHA refinance loans are loans for those who own an existing property and want to take out a new loan that is secured by that property. Whether you have a home purchased with a conventional mortgage, VA, FHA, USDA, or other non-FHA mortgage, your FHA refinance loan options will include cash-back-to-the-borrower type refinance loans or no-cash-out FHA refinancing. | more...

June 19, 2017

FHA Streamline Refinance Loan Requirements

By Joe Wallace

FHA Streamline Refinance Loan requirements include having a tangible benefit to the borrower in the form of a lower interest rate, a lower monthly payment, shorter mortgage term, and/or refinancing into a fixed rate loan from an FHA adjustable rate mortgage. But there are other requirements for streamline refi loans above and beyond the “tangible benefit” rules. Did you know that FHA streamline loans have “seasoning” rules, too? Seasoning in this case means how long the borrower has been paying on the existing FHA home loan before the assignment of a new FHA loan case number for the refinance transaction. How long do you have to own your home before you can refinance with an FHA Streamline? HUD 4000.1, the FHA single family home loan handbook, states that on the | more...

June 19, 2017

FHA Streamline Refinance Benefits

By Bruce Reichstein

FHA Streamline Refinance rules state that in order for the loan to be approved, the lender must determine that the refinance loan has some type of actual benefit to the borrower. What are the benefits of FHA Streamline refi loans and which one is right for you? FHA Refinance Basics FHA refinancing is usually for either existing FHA mortgages or non-FHA mortgages. However, for FHA Streamline Refinance loan transactions, only existing FHA mortgage loans are allowed. FHA refinancing requires a new credit check and appraisal for any transaction that features cash back to the borrower above and beyond refunds of money paid up front for items that wind up being financed into the mortgage loan. However, FHA Streamline loans don’t allow money back to the borrower, so there’s no FHA-required | more...

February 1, 2017

FHA Refinancing: Your Options

By Joe Wallace

There are many reasons to consider an FHA refinancing loan. Some borrowers want to refinance out of an adjustable rate mortgage, others want to refinance out of a more expensive conventional mortgage, while others still want to take out some of the cash value in their home. Do you know what your FHA refinancing loan options are? According to HUD 4000.1, the rule book for all FHA single-family mortgages, there are a variety of options: 1. No cash-out refinances of FHA-insured and non FHA-insured Mortgages. This type of FHA refinancing is meant to pay off existing liens. These include: Rate and Term refinance, Simple Refinance, and Streamline Refinance. 2. Cash-out refinances. 3. Refinances of non FHA-insured Mortgages are available for qualified Borrowers in negative equity positions (Short Refi). 4. Refinances | more...

What happens to my FHA loan in a natural disaster?

June 16, 2016

Your FHA Refinance Loan Options

By Joe Wallace

Do you have an existing home loan you want to refinance? Your options and choices may depend greatly on your needs, especially if it’s a question of getting cash back on the transaction or trying to get into a lower mortgage payment. The first thing you should know about your FHA refinance loan options is that FHA refinancing, depending on the type of loan you seek, does not depend on your having an existing FHA mortgage. If you have a non-FHA loan such as a VA mortgage or conventional loan, you can apply to refinancing these non-FHA loans with an FHA cash-out refinance loan option. FHA cash-out refinancing also comes in a no cash-out option depending on the lender, so if you want to explore this instead of cash-out, have | more...

December 2, 2015

FHA Refinancing: When Is A Credit Check/Appraisal Required?

By Joe Wallace

Are you considering refinancing your dream home? Are you looking for cash out, lower payments, or a lower interest rate? Your financial needs and goals will dictate the type of FHA refinance loan you should apply for. Knowing which type of loan you need is an important part of the refinance preparation process. Borrowers who have existing conventional, VA, or other non-FHA home loans can refinance into an FHA mortgage loan using an FHA cash-out or non-cash out option. This type of refinancing requires both a new appraisal and a new credit check. To get cash out on such a loan, you’ll need to have enough money left over in the new loan after paying off the old mortgage plus any fees and expenses associated with the loan. Borrowers who | more...

August 27, 2015

FHA Refinance Loan Choices

By Joe Wallace

When you’re thinking about refinancing an FHA mortgage loan, there are many options to consider. Should you stay with your original lender or does another lender have better terms and/or interest rates? Do you remain in your current adjustable rate mortgage or fixed-rate loan? Do you want cash back in the refinance loan transaction? All of these are important questions to ask. You don’t have to stay with the original lender you took out your first mortgage with; regardless of whether you have an existing FHA loan or a conventional mortgage or even an VA loan, refinancing into an FHA mortgage is definitely an option for you. Your original lender might be willing to offer you better terms since you’re already known at that financial institution, but it’s never safe | more...

April 9, 2015

FHA Cash-Out Refinance Loans: A Reader Question

By Joe Wallace

A reader asks, “Our home is in trust, and my mother-in-law has signed a quit claim deed. My husband was in a hit and run motorcycle accident 3 years ago this coming June. Due to his inability to work for 4 months we struggled with payments and our credit is horrible. We would like to get a loan on our house so we can pay off a home equity loan, and multiple collections.” “Our home is valued at approx. $250,000, and we would like to get a loan for half of that so we can get out of debt and make some improvements to our home. My husband has credit scores of Experian 558, Equifax 517, and Transunion 491. Is it possible to find an FHA lender that would be | more...

July 17, 2014

FHA Refinance Loan Types: No Cash-Out Refinances With Appraisal Required

By Joe Wallace

There’s a type of FHA refinance loan available under the FHA single-family program known as a No Cash-Out Refinance (appraisal required). FHA loan rules for this type of refinance loan include guidelines for the maximum loan amount, how to calculate the existing mortgage debt, and how to deal with subordinate liens such as a home equity line of credit or HELOC. What is the maximum loan amount for this type of FHA refinancing? According to HUD 4155.1 Chapter Three Section B, we learn the following: “The maximum mortgage for a no cash out refinance with an appraisal (credit qualifying) is the lesser of the • 97.75% Loan-To-Value (LTV) factor applied to the appraised value of the property, or • existing debt. The total FHA first mortgage is limited to 100% | more...

January 29, 2014

FHA No-Cash Out Refinancing Loans (With Appraisal): Basic Rules

By Joe Wallace

There are plenty of reasons to refinance a home with an FHA no-cash-out refinancing loan–taking advantage of lower interest rates is one of those good reasons, as is getting into a lower mortgage payment. The FHA offers a variety of refinancing options for single family home loans–what are the basic ground rules for an FHA no-cash-out refinancing loan? For starters, the amount that can be refinanced is, according to HUD 4155.1 Chapter Three Section B, “is the lesser of the 97.75% Loan-To-Value (LTV) factor applied to the appraised value of the property, or existing debt. The total FHA first mortgage is limited to 100% of the appraised value, including any financed upfront mortgage insurance premium (UFMIP).” Chapter Three adds that in general, the maximum mortgage cannot exceed the “statutory limit, | more...