July 18, 2018

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Articles in Category: FHA Refinance

Should You Sell Your Home? The FHA Cash-Out Refinance Option

Should You Sell Your Home? The FHA Cash-Out Refinance Option

There are a lot of websites urging home owners to consider selling your home, especially for those who own homes on the West Coast. Home owners on the West Coast and other increasingly profitable housing markets have the potential (at the time of this writing) to earn more than ever by selling a house. But borrowers looking to get cash from their homes in a housing market where property values are going up have another option to consider. It doesn’t matter if your home is in San Jose, San Francisco, Seattle, or Nashville, if your home could appraise for more money today due to the influence of a hot housing market? It could be worth an amount worth considering in the form of an FHA cash-out refinance. If you are | more...

 
FHA loans

Happy 4th of July 2018!

Today we pause from our regular posts on FHA home loans, FHA refinance loans, and FHA Reverse Mortgages to observe the 4th of July Independence Day holiday. Thank you very much for reading, have a safe holiday and we will resume our regular posting schedule on Thursday July 5th. Thank you for reading!

 
Seven Facts About FHA Home Loans

Seven Facts About FHA Home Loans

Seven facts about FHA home loans you should know include lower credit score requirements and down payments than conventional mortgage counterparts. The other five facts are just as useful to a house hunter as the low down payment and FHA credit score rules. FHA Home Loan Limits Are Adjusted Yearly And Vary Depending On The Housing Market Not all housing markets have the same costs or median house prices. A Zillow.com report for home values in 2018 says houses in California may average around $500,000 while homes in Pennsylvania average around $160,000. FHA home loan limits for high-cost and low-cost areas are adjusted rather than featuring an one-size-fits-all approach. FHA Loan Down Payment Requirements Compared To Conventional Mortgage Loan Requirements FHA loans specify down payment minimums between 3.5% of the | more...

 
Should I Consider An FHA Reverse Mortgage?

Should I Consider An FHA Reverse Mortgage?

Should I consider an FHA reverse mortgage? Many qualified borrowers are asking that question now in light of recent housing market stats indicating rising property values well into 2019. A Zillow.com report (through May 2018) indicates that housing is on an upward trend at the time of this writing. Home values have increased more than eight percent according to the Zillow report, and the same report says values could go up another 6.5% in the next year. Rising home values in U.S. housing markets means that borrowers applying for appraisal-required refinancing or FHA Reverse Mortgages (also known as FHA HECM loans) may discover their home is worth more than they realized. Naturally, this won’t apply in every single housing market, trends vary nationwide and your experience may vary based on | more...

 
FHA Cash-Out Refinancing Loan Occupancy Requirements

FHA Cash-Out Refinancing Loan Occupancy Requirements

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...

 
Are You FHA Refinance Eligible?

Are You FHA Refinance Eligible?

Are you FHA refinance loan eligible? There are some very simple requirements refi loan applicants must meet in order to qualify for an FHA refinance loan. Do you know what they are? Factors That Affect Your FHA Refinance Loan Eligibility FHA refi loan eligibility may depend on a borrower’s FICO scores in some cases, along with the number of house payments you have made at application time. FHA minimum FICO scores include a range between 580 or better for maximum financing. Another factor in knowing if you are eligible for an FHA refinance loan is the kind of refinance loan you seek; FHA Cash-out Refinancing and FHA no Cash-Out refinance loans can be used for FHA or non-FHA loans alike. The same is true of FHA Rehab Loans processed as | more...

 
What If I Miss A Mortgage Payment Before Applying For An FHA Refinance Loan?

What If I Miss A Mortgage Payment Before Applying For An FHA Refinance Loan?

What if I miss a mortgage payment before applying for an FHA refinance loan? That is a question on the minds of some borrowers going into the refinance loan planning stages. What should a borrower do if they are worried about a missed mortgage payment? The first thing to understand is that FHA home loan rules for credit-including on-time payment requirements for new mortgage loans, are not the only standards which will apply. We could quote line after line of FHA regulations pertaining to refinance loan approval and missed or late payments, but lender standards will also apply above and beyond FHA loan rules. In general, FHA loan rules prohibit new loans for any borrower currently delinquent on an FHA mortgage. A loss mitigation program designed to prevent foreclosure may | more...

 
What To Do If Your Credit Score Isn't Perfect But You Are Still Buying A Home

FHA Cash-Out Refinance Loan Credit Tips

If you are considering an FHA Cash-Out Refinance loan, you’re likely wondering what credit tips will help you get closer to loan approval. If you are considering a cash-out refi loan, it’s best to start working on your credit as early as possible in order to make sure the hard work you do is evident when it’s time to fill out the loan application. Evaluate Your Current Budget Reviewing your budget won’t help with credit repair, but it’s an important first step. Why? The lender will be looking at your income compared to your outgoing monthly debt to calculate the debt-to-income ratio for your loan. If your debt is higher than a certain percentage (and lender standards will apply in this area as well as FHA loan rules) your loan | more...

 
FHA Home Loan House Hunting Checklist

Can Military Members Refinance A VA Mortgage To An FHA Loan?

Can a military member or veteran with a VA mortgage loan refinance that loan into an FHA mortgage? If a VA borrower wanted to refinance using an FHA Rehab loan, for example, is such a transaction possible? Some online research into the possibility of a “VA rehab loan” turns up results that indicate that a borrower might have a difficult time finding a lender willing to issue the right kind of refinance loan for the borrower’s needs in this particular area. VA loan rules basically address cash-out refinancing, Interest Rate Reduction Refinancing Loans (IRRRLs) and refinancing loans to cure a delinquent mortgage. There is a section under “other refinancing loans” for VA refinance options that include a construction loan, but the VA in general does not offer the same kind | more...

 
FHA 203(k) Rehab Loans: What's A Contingency Reserve?

FHA 203(k) Rehab Loans: What’s A Contingency Reserve?

If you are interested in buying or refinancing a home to renovate with an FHA mortgage, the FHA 203(k) loan is a great place to start exploring your options. The FHA 203(k) rehab loan comes in two varieties-one for larger and more ambitious projects, and a smaller “limited” 203(k) that offers smaller loans for simpler repairs/renovations. The 203(k) loan involves hiring contractors and having work done according to both FHA home loan minimum standards, but also requires that the home be brought into compliance with applicable building codes. Lender standards, state law, and FHA home loan rules will affect how this transaction is conducted. One FHA requirement is the FHA rehab loan contingency reserve, which you can think of as a “rainy day fund” in case there are unexpected costs | more...