December 14, 2017

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Articles in Category: Cash-Out Refinance

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...

 
What are my FHA refinance loan 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 are my FHA refinance options?

When Can I Refinance An FHA Loan?

When can I refinance an FHA loan? That is a common question, and one that is addressed in the FHA loan handbook, HUD 4000.1. There are rules that govern how and when you can refinance your home loan and those rules will vary depending on the type of refinance loan you seek. Most FHA home loans, including refinance loans and even reverse mortgages, require occupancy as a condition of loan approval. In the case of FHA cash-out refi loans, that occupancy is required for at least one year prior to the new loan. From HUD 4000.1: “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences. The Property securing the cash-out refinance must have been owned and occupied by the Borrower as their Principal Residence for the 12 months prior | more...

 
What is a rate and term refinance?

Where Can I Refinance An FHA Loan? Part Two

Where can I refinance an FHA loan? We’ve been exploring FHA refinance topics in recent blog posts, and this common question is definitely an important one. Why? Because depending on your refinance needs, you may need to shop around for a lender who will offer the type of loan best for your financial goals and needs. FHA refinance loans for existing FHA mortgages are sometimes referred to as “FHA-to-FHA refinancing”, which simply means that you’re going from one FHA loan to another. One misconception about refinance loans is that you would need to stay with the original lender in order to refi FHA-to-FHA, but this is not true. You are free to shop around for a new participating FHA lender to refinance your mortgage. You are also free to explore | more...

 
FHA Loan Questions: What Constitutes Flipping?

How Do You Refinance An FHA Loan? FHA Refi Options

How do you refinance an FHA loan? In our last blog post on this subject, we discussed the need to determine your financial needs and goals before examining the different types of FHA refinance loan options. Are you planning to stay in your home for the duration of the loan? Do you need to sell long before then? The answers to those questions will help determine which refi loan is right for you. But what ARE those options? FHA Cash-Out and No Cash Out Refinance Loans Borrowers who have existing FHA mortgages or even non-FHA home loans can refinance with either FHA Cash-Out refinancing or a no-cash version of the same. Cash out refinance loans permit the borrower to get money back on the transaction. Basically once your original mortgage | more...

 
When Is An FHA Loan A Good Idea?

When Is An FHA Loan A Good Idea? Part Two

When is an FHA loan a good idea? There are plenty of new purchase options, but those who have existing home loans and want to refinance into lower payments or interest rates should also explore their FHA mortgage options. FHA Loans Are For Those Who Want To Refinance FHA Loans Borrowers with existing FHA mortgage loans should consider the FHA Streamline Refinance loan option. This type of FHA refi loan does not offer money back to the borrower (except for refunds of money paid up front for things that later get financed into the loan amount) but does require a benefit to the borrower in one of several forms: A lower monthly payment A lower interest rate A fixed rate (when refinancing out of an adjustable rate mortgage loan) There | more...

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

What Is An FHA Cash-Out Refinance Loan? Part Two

What is an FHA cash-out refinance loan? These types of loans are designed to help the borrower draw equity out of the property being refinanced. Once the original loan is paid off, and the new loan’s fees are covered, the remaining cash comes back to the borrower for any purpose acceptable to the lender. Cash Back, LTV Limits FHA cash-out refinance loans are different than FHA Streamline Refinance loans, which are restricted to FHA-to-FHA transactions and don’t allow any cash back except refunds. FHA cash-out refi loans are “appraisal required” and feature an LTV limit. That limit is 85% of the adjusted value of the home. There is also a mortgage limit found in the cash-out refi rules in HUD 4000.1: “The combined mortgage amount of the first Mortgage and | more...

 
What is an FHA cash-out refinance loan?

What Is An FHA Cash-Out Refinance Loan?

What is an FHA cash-out refinance loan? Simply put, FHA cash-out refinancing lets a borrower pay off the original mortgage and use the cash left over for any purpose acceptable to the lender. The new mortgage will be a standard term (15 or 30 years) and FHA cash-out refinance loans can refinance FHA-to-FHA, conventional-to-FHA, or any other non-FHA mortgage acceptable to the lender. The definition of an FHA cash-out refinance loan as found in the FHA single family mortgage loan handbook, HUD 4000.1, states that cash-out refinancing can also be used to take equity out of the home where no mortgage currently exists. According to page 406 of HUD 4000.1: “A Cash-Out Refinance is a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in | more...

 
What are my FHA refinance loan options?

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...