July 18, 2018

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Articles in Category: Cash-Out 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 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...

 
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...

 
How Many FHA Mortgages Can I Have?

Why Do People Refinance Home Loans?

Why do people refinance home loans? The answers are diverse since there is more than one reason to refinance AND more than one application for an FHA refi loan. Refinancing To Get Lower Monthly Payments One powerful motivation to refinance is to get a lower mortgage payment each month. Existing FHA mortgages can be refinanced into FHA Streamline Refinancing mortgages, which feature no FHA-required new credit check or appraisal. Your lender may require a credit check and/or appraisal if lender requirements or circumstances warrant. Some Streamline Refinance loans have to include a new credit check if the borrower chooses add-ons to the loan that increase monthly payments over a certain threshold. FHA Streamline Refinance loans must generally result in a tangible benefit to the borrower including a lower payment. Non-FHA | more...

 
FHA Home Loans For Manufactured Housing Classified As Condo Projects

FHA Refinance Loan Myths

FHA refinance loan myths keep some potential borrowers from making a truly informed choice about what to do when it’s time to apply for a cash out refinance loan, reverse mortgage, or rehab loan. Know the facts before you decide! FHA Refinance Loans And Changing Lenders It’s a myth that you can’t refinance your home with a different financial institution than what you started with. You are not required to use your original lender when refinancing a mortgage loan. This is true regardless of whether your original mortgage is an FHA loan or not. Your original mortgage can be refinanced into an FHA loan even if it is a conventional mortgage or other type of non-FHA loan. You will be required to change lenders if your current mortgage is a | more...

 
FHA Home Loans For Manufactured Housing Classified As Condo Projects

More FHA Refinance Loan Tips

There are many FHA refinance loan tips you should know when planning and saving for your new loan. Refinance loans guaranteed by the FHA feature fixed or adjustable rates, can offer cash back to the borrower, and also come as a no cash-out option for both FHA and non-FHA mortgages. FHA Refinance Loans Have No Down Payment, But Do Have Closing Costs You won’t make a down payment on an FHA refinance loan, but there are associated closing costs with the loan you will need to budget and save up for. The LTV for an FHA refinance loan varies depending on the type of refinancing you seek; talk to your lender about the expenses associated with your refinance loan so you can save accordingly. FHA Loans Do Not Require Private | more...

 
FHA Refinance Loan Top Five Tips

FHA Refinance Loan Top Five Tips

There are many things you’ll need to know if you are applying for an FHA refinance loan for the first time. Do you know what your options are to refinance? If you have an existing FHA or non-FHA loan, it is possible to refinance into an FHA mortgage with a fixed or adjustable rate, with cash back to the borrower or without cash back. Your refinance loan options are more diverse than you might think. 5. Refinance Your Home Loan With Your Current Lender OR Find A New Financial Institution Refinancing into an FHA mortgage does NOT require you to stay with your current bank. Any participating lender willing to work with you can process your FHA refinance loan paperwork. You are not required to use the original lender to | more...

 
Reasons To Refinance With An FHA Mortgage

Reasons To Refinance With An FHA Mortgage

Reasons to refinance your home loan with an FHA mortgage vary as much as the types of homes you can purchase with an FHA loan. Is now the right time to examine your refi loan options and start planning for your new loan? You might be ready for an FHA refinance option if one or more of the following applies to you. Refinance Loans For Those Who Want A Lower Interest Rate Depending on the nature of your original home loan, FHA refi loans could help you save money over the lifetime of your mortgage loan with lower interest rates. One thing that’s easy to overlook about the interest rate options available with FHA loans; what you are offered will depend at least in part on FICO scores and other | more...