June 26, 2017

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Articles in Category: Cash-Out Refinance

What Is An FHA Refinance Loan?

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...

 

Qualifying For An FHA Cash-Out Refinance Loan

Qualifying for an FHA cash-out refinance loan is much the same as qualifying for an FHA “forward mortgage” or typical new purchase loan. Since this type of refinancing involves money back to the borrower, the lender is required to run a new credit check and the usual credit requirements will apply even for those who are repeat customers for a particular lender. Credit Activity When you are preparing for your FHA cash out refinance loan, you’ll need to observe the same rules about credit that you did when you applied for your original mortgage. That means avoiding new credit card applications and other types of credit leading up to your refi loan paperwork. Why? Every time you apply for new credit, a “hard inquiry” is listed on your credit report. | more...

 

FHA Refinance Loans For Home Improvements

Weve been discussing FHA refinance loan options in our recent blog posts, and home improvements are one important option for those with existing FHA mortgages or non-FHA loans alike. How can FHA refinance loans help a borrower make upgrades or improvements? There are multiple programs available through participating FHA lenders including the FHA Energy Efficient Mortgage program (EEM), and FHA Rehab loans. Most of these options will require the borrower to work more closely with the lender to determine what may be funded using FHA refinance loans, but many projects are possible. For FHA Energy Efficient Mortgages, borrowers can apply to add funds to the refinance loan for upgrades that result in lower utility bills, including approved solar heating systems, storm windows or doors, or other alterations. The borrower will | more...

 

FHA Refinance Loans For Lower Interest Rate Or Fixed Rates

FHA refinance loans are an option for borrowers with existing FHA mortgages. But there are also options for non-FHA borrowers to refinance into FHA loans and get the benefits of having a lower interest rate or other options that come with FHA mortgages. Refinancing a home loan can have a variety of benefits depending on the financial needs and goals of the home owner. There are many reasons to refinance including the desire to get into a lower interest rate, to get out of an adjustable rate mortgage, and sometimes even to fund repairs and upgrades to the property. What does it mean to refinance a home loan? The answer depends on the type of transaction you need and the reasons you wish to refinance. For those who are looking | more...

 
mortgage loan and business debt

Refinancing Your Mortgage

There are many reasons why people refinance a home loan. Some do it to lower their interest rates, others may wish to cash in on the equity built up in the home over time. Still others might want to do upgrades or repairs to the home but don’t want to pay all the costs out-of-pocket. The reasons you refinance may vary, and for that reason there are a variety of choices when it comes time to consider an FHA refinance loan. Lower Interest Rates The FHA streamline refinance option lets borrowers apply for a loan using their original loan application data. There is no FHA requirement for a new credit check or appraisal. (Your lender may require one or both.) FHA streamline refinance loans must result in a tangible benefit | more...

 

FHA Refinance Loans: Cash-Out, Rehab

Are you thinking about refinancing into an FHA loan from an existing non-FHA mortgage? Do you already have an FHA mortgage and want to refinance? There are options under the FHA loan program for both, including the possibility of applying for a refinance loan to repair the property or add improvements to it. FHA refinance loans are intended for all financially qualified borrowers regardless of their current loan, whether it is an existing FHA, conventional, VA, or other non-FHA mortgage. FHA refinance loan options include cash-out, no cash-out, rehab mortgages, and streamline refinancing. FHA Streamline Refinance loans are intended for those with existing FHA mortgages and have no FHA-required appraisal or credit check. The lender may require both, but the FHA loan rules in HUD 4000.1 allow participating lenders to | more...

 

FHA Refinancing: Your Options

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...

 
FHA loan down payment

What Kind Or Refinance Loan Do You Need?

Buying a home is sometimes only the first step in a larger financial journey-if you purchase a home with a conventional, VA, FHA or other type of mortgage loan, you might not be thinking about refinancing. But it’s an option that can be helpful in a variety of ways, especially if you understand how FHA refinance loans work. Choosing the right refinance loan is an important part of the process. Existing FHA mortgages have a refinance option that allows the borrower to get into a lower interest rate/monthly payment. This option is called the FHA Streamline Refinance mortgage and has no FHA-required appraisal or credit check. Depending on lender standards you may need one or both regardless, but the lender is free under FHA loan rules NOT to require them. | more...

 

FHA Refinance Loans: 10 Things To Know

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...

 

FHA Refinance Loans: What Are Your Options?

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...