October 17, 2017

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Articles in Category: FHA Refinance

What is a rate and term refinance?

What Is An FHA Rate And Term Refinance?

What is an FHA rate and term refinance? This refinance loan is different than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this type of mortgage differs from the rest. What Are FHA Rate And Term Refinance Loans? HUD 4000.1 defines an FHA rate and term refinance loan as follows: “Rate and Term refers to a no cash-out refinance of any Mortgage in which all proceeds are used to pay existing mortgage liens on the subject Property and costs associated with the transaction.” Who Is Eligible To Apply For An FHA Rate And Term Refinance Loan? HUD 4000.1 explains that “at least one Borrower” named on the original home loan as | more...

 
How can I get cash back with an FHA loan?

How Can I Get Cash Back With An FHA Mortgage?

How can I get cash back with an FHA loan? It’s a question many want to know, especially those who might be interested in applying for “more” FHA loan than is needed to complete the transaction. Is getting cash back at closing time possible with an FHA mortgage? The answer depends greatly on the type of transaction you seek. Some loans do not allow any cash back except for refunds, others are designed to offer money to the borrower at closing time depending on the terms of the loan and other factors. FHA New Purchase Home Loans If you are asking the cash back question about FHA forward mortgages (loans used to buy a home on the housing market as opposed to a refinance loan or an FHA reverse mortgage), | more...

 
Can I refinance a conventional mortgage to an FHA loan?

Can I Refinance A Conventional Mortgage To An FHA Loan?

Can I refinance a conventional mortgage to an FHA loan? It’s a very good question to ask, especially if you are interested in moving out of an adjustable rate mortgage into a fixed-rate loan. Do you know what your FHA home loan refinance options are? FHA Refinance Loans For Conventional To FHA It is possible to refinance a conventional mortgage to an FHA loan. According to the FHA loan handbook, HUD 4000.1, there are several options for FHA refinancing, including non-FHA to FHA transactions: “FHA insures several different types of refinance transactions: 1. Cash-out refinances are designed to pull equity out of the Property. 2. 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 | more...

 
FHA One Time Close Construction Loans: How They Work

Can Military Members Apply For FHA Mortgages?

Can military members apply for FHA mortgages? There are plenty of reasons why a currently serving military member, retiree, or veteran might want to explore FHA mortgage loan options. One reason? Borrowers who have purchased property with a VA mortgage but want to buy a new primary residence might choose to explore FHA loan options rather than try to have VA loan eligibility renewed. A borrower may wish to save their VA options for later, and turn to FHA mortgages instead thanks to some similarities between both programs including Streamline Refinance loan options. What do FHA loan rules say about military members and their ability to use FHA loans instead of VA mortgage loan options? One issue with FHA loans is the occupancy requirement. Borrowers are required to occupy the | more...

 
What are my FHA refinance options?

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...

 
HUD Issues Announcement On HECM Loan Policy Changes

HUD Issues Announcement On HECM Loan Policy Changes

The Department of Housing and Urban Development has issued a mortgagee letter detailing changes to the FHA loan HECM program (also known as FHA Reverse Mortgage program) effective for all case numbers assigned on or after September 19, 2017. According to Mortgagee Letter 2017-11, the changes affect how participating lenders proceed in cases where there has been a loan default for “unpaid property charges” and the sale of property secured by an FHA HECM that has been declared due and payable. According to the FHA/HUD official site, for cases where unpaid property charges cause a HECM loan to go into default, new guidance to lenders includes the following: “If a Borrower is unable or unwilling to repay the Mortgagee for any Mortgagee funds advanced to pay property charges, the Mortgagee | more...

 
FHA 203(k) Fixer-Upper Loans: What About The Appraisal?

FHA 203(k) Fixer-Upper Loans: What About The Appraisal?

When you buy a home with an FHA mortgage, it must be appraised to insure the property meets minimum FHA standards. A home to be purchased with an FHA mortgage must be code-compliant, it must not be too close to high voltage lines or high pressure gas pipelines, and there are specific requirements for property located near know natural disaster zones. All of these requirements protect buyers and lenders alike, but there are certain instances where a property would never pass the FHA appraisal, yet borrowers seek mortgage loans for these properties anyway. Consider the borrower who needs a home loan to do rehab or repair work on an existing structure that badly needs it. And what about the borrower who wants to purchase a fixer-upper home, or a property | more...

 
How much can I borrow with an FHA refinance loan?

How Much Can I Borrow With An FHA Refinance Loan?

How much can I borrow with an FHA refinance loan? There are many reasons why a borrower might need to know early in the planning stages how much might be allowed, and knowing the FHA loan rules in this area can definitely help save time before you apply for the loan. Knowing what kind of refinance loan you might need is a big help in answering the question. Why? Because the actual dollar amount for some FHA refi loans may vary for the same property depending on circumstances. The amount of an FHA rehab loan, for example, will be higher since there are laborers and materials to be paid for, inspections, etc. The same home that gets an FHA Streamline Refinance loan instead might have a lower dollar amount depending | more...

 
What are my FHA refinance options?

Why Should I Refinance With An FHA Mortgage?

Why should I refinance with an FHA mortgage loan? Many ask themselves this, and often times 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. | more...

 
What Kind Of Home Can I Buy With An FHA Loan?

When Can I Refinance An FHA Loan? FHA Short Refinance

In our last blog post, we discussed when a borrower is permitted to refinance a home loan using an FHA mortgage. But there’s one area not covered by the rules on refinancing with cash out or with no-cash out FHA refinancing. What about borrowers who are underwater on non-FHA mortgages, sitting in what in what is known by mortgage professionals as a “negative equity position”? Is there any help for these home owners? According to HUD 4000.1, the FHA loan handbook, there is a program called the FHA Short Refi, which “allows the Mortgagee to refinance a non FHA-insured Mortgage in which the Borrower is in a negative equity position”. That could be good news for some who badly need to get back on the road to building equity once | more...