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Articles in Category: Cash-Out Refinance

FHA Home Loan Rules

Refinancing a Conventional Loan To An FHA Mortgage

Some borrowers want to know: is it possible to refinance out of a conventional mortgage using an FHA refinance loan? It’s a smart question to ask, especially if you are interested in moving out of an adjustable-rate mortgage and into the predictability of a fixed-rate loan. FHA Refinance Loan Options FHA loan rules do permit you to refinance a conventional mortgage using an FHA cash-out refinance loan. But that’s not your only option. The FHA loan handbook, HUD 4000.1, says your options for FHA refinancing include non-FHA to FHA transactions. What kinds of refinance loan options are available? In general: Cash-out refinances to help you pull equity out of your home; No cash-out refinances for both FHA and non-FHA-insured Mortgages. These loan options include Rate and Term refinance, and FHA | more...

 
FHA Home Loans And The Biggest Credit Mistake You Can Make

FHA Cash-Out Refinance Loan Rules You Should Know

What should borrowers know about FHA cash-out refinance loans? There are many areas, but some of the most important include how you can use the proceeds of a cash-out refinance loan, and the rules the lender is required to follow when verifying the borrower is eligible for a cash-out loan. Borrowers may wish to pay off credit card debt with an FHA Cash-Out refinance loan, or use the money to pay off nuisance debt, buy a car, go on vacation, etc. What are the rules for FHA cash-out refinance loans and the money back to the borrower? How To Use FHA Cash-Out Refinance Loan Proceeds Did you know that some FHA loans have specific guidelines as to how the loan funds may be used? For example, if you applied for | more...

 
FHA Options

FHA Home Equity Loans?

Is there such a thing as an FHA home equity loan? Some borrowers want to tap into the equity built up in their home to pay bills or to make a large purchase, others may want to start home improvement projects. Conventional mortgages often come with the option of applying for a home equity loan or a home equity line of credit.  What options exist for FHA borrowers? FHA home loan options don’t include a home equity line of credit or a home equity loan. You won’t find an FHA loan option that mimics these options.  What FHA borrowers do have the option to apply for? FHA Cash-Out Refinancing, which allows you to take cash back at closing time if you meet the following requirements in addition to credit qualifications: | more...

 
FHA refinance

FHA Refinance Loans: What You Should Know

If you are considering your FHA refinance loan options, there are several things you should know about refinancing with FHA before you apply. There are a variety of refinance loan options available-under FHA loan rules you can apply to refinance a home loan with cash out, you can also apply for an FHA Streamline Refinance that has no cash back to the borrower but also has no FHA-required credit check. Your participating lender is permitted to require an appraisal and/or credit check depending on lender standards and other variables. Borrowers in conventional loans or other non-FHA mortgage loans can refinance using the FHA Cash-Out Refinance option or choose an FHA refinance (with required credit check and appraisal) in the no-cash-out version of this type of FHA refinancing. FHA Streamline refi | more...

 
FHA loans

FHA Cash-Out Refinancing vs. VA Cash-Out Refinancing

What are the major differences between VA Cash-Out Refinance loans and the FHA Cash-Out Refinance loan program?  There are several, and some borrowers may have the option to consider both, including active duty military members, Reservists, members of the National Guard, veterans, and certain surviving spouses of military members who died as a result of military service. And then there are borrowers who are just trying to compare the options on the market. These house hunters may also be reviewing other home loan options such as USDA and conventional loans. What should people know about the FHA and VA versions of this refi loan option? As you can guess from the above, VA mortgages and refinance loans aren’t offered to the general public. Some sources report that in 2019 alone | more...

 
FHA Options

FHA Refinance Loan Q&A

Thinking about a refinance loan but not sure where to start? There are some common questions about refinancing your home loan, we provide some answers to them below from cash-out refinancing to rehabilitation loans. When Can I Refinance My FHA Mortgage? That may depend on the type of refinancing you seek. You can get an FHA Cash-Out Refinance loan once you have owned and occupied the property for 12 months.  For FHA Rate-And-Term Refinances, you can own the home for less than 12 months but the loan-to-value ratio will be lower than if you apply after having owned and occupied the home for more than 12 months. FHA Streamline Refinance options require you to own the home for at least six months. Can I Refinance A Non-FHA Mortgage Into An | more...

 
FHA refinance loans: Questions To Ask

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 Refinance 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...

 
FHA Home Loan Questions

FHA Refinance Loan Terms You Should Know

If you have never applied for a refinance loan and are considering an FHA refinance, you may be unfamiliar with certain industry jargon and loan terms that will come up in the course of your loan application and during the approval process. This article isn’t about what it takes to be approved for an FHA refinance loan, but it will make some aspects of the process a bit less mysterious. Rate And Term Refinance This is a type of FHA refinance option that features no cash back to the borrower, and uses all loan proceeds to ​​pay off the original loan and cover closing costs. These loans can be used to refinance FHA or non-FHA mortgages. FHA Simple Refinance Like the Rate And Term, this refi option is meant as | more...

 
FHA mortgage credit score

FHA Refinance Loan Options

No two refinance loan programs are exactly identical–depending on the program and the lender you may find terms and conditions vary.  For example, where FHA Home Equity Conversion Mortgages are concerned, there is a minimum age you must be (62 or older) to qualify. That is NOT true of FHA Cash-Out Refinancing or FHA Simple Refinance loans. What’s more, FHA refinance loans do not have the same terms and conditions.  For example, these refinance loans may, depending on the participating lender, allow you to refinance an adjustable-rate mortgage (ARM) into a fixed rate but also may permit you to go from one adjustable-rate mortgage to a new ARM. And that loan could be a 15-year or a 30-year loan depending on your financial needs and goals. There are many choices | more...

 
Should I Buy A Condo With An FHA Home Loan?

Advantages Of An FHA Cash-Out Refinance Loan

Do you know the advantages of an FHA cash-out refinance loan? There are several, especially if you are considering an FHA loan to get money to renovate your existing home. FHA Cash-Out Refinancing Loans: Good For FHA and Non-FHA Mortgages FHA cash-out loans are for all mortgages, FHA, or not. You can refinance a USDA, VA, conventional, existing FHA loan, etc. The rules to qualify are the same no matter what kind of home loan you wish to refinance, and the longer you have been making mortgage payments, the better. FHA Cash-Out Refinance Loan Funds Are Not Restricted The uses you put your cash-out refinance money towards is not restricted; you can use your cash-out funds any way you see fit. That includes debt consolidation, vacations, and home repair. FHA Cash-Out | more...