March 30, 2020

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Articles in Category: Cash-Out Refinance

Income Rules For FHA Loan Approval: What You Need To Know Today

FHA Purchase and Refinance Loan Interest Rate Trends And Your New Home

FHA home loans have a low minimum required down payment of 3.5%, which makes them perfect for both experienced homeowners and first-time homebuyers alike. With an FHA mortgage it’s possible to purchase or refinance a fixer-upper (with an FHA 203(k) rehab loan), buy or refinance a condo, mobile home, existing construction houses, and you can even apply to have a home built for you on your own lot with an FHA One-Time Close construction loan. As we head into the second month of 2020, we are reminded that 2019 was the best year for mortgage loan interest rates in almost a decade and the trends that kept rates low last year continue to exert some influence as new issues also conspire to push mortgage rates lower. At least in the | more...

 
FHA Refinance Loans And Current Interest Rates

FHA Refinance Loans And Current Interest Rates

Is your mortgage payment too high? Need to refinance to bring down the monthly cost? Recent headlines about mortgage loan interest rates have contained the word “refinance” a lot lately; world events including the Wuhan virus, impeachment proceedings, and other news have conspired to help push mortgage rates lower. Those things themselves do not directly influence mortgage loan interest rates, but investor behavior DOES. And because of that investor behavior, we have seen FHA loan interest rates move significantly lower. Some writers refer to that move in terms of historical context. “Mortgage Rates At Three Year Lows!” screamed some headlines in early 2020. One consequence of those low rates? A surge in refinance loan applications as consumers rush to take advantage of the lower interest rates to save money on | more...

 
What Affects The Cost Of Your Home Loan

Can I Refinance An Inherited Home With An FHA Cash-Out Refi Loan?

Home owners who inherit property have the opportunity to refinance that property with an FHA mortgage, and those refi options can include cash-out refinancing. But there are some rules you need to know before you start the refinance application process. FHA home loan rules generally state that a borrower should be prepared to live in the home they wish to refinance with an FHA cash-out refinance loan for as long as 12 months first. That is a general rule and not specific to inherited properties. HUD 4000.1, the FHA loan handbook for single-family home loans, instructs the lender that it’s required to document, “that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, | more...

 
Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment.

FHA Refinance Loan Options Millenials Should Know

Should millennials explore their refinance options right now? Some finance and mortgage publications seem to think so, and recent headlines indicate that many are taking advantage of recent lower mortgage loan interest rates to explore their refi options. Some note that in recent times, some millennials have overlooked FHA refinance loans; one source indicates that FHA refinance applications dropped some nine percent during July 2019 among millennials; some blame that in part on a communication breakdown between lender and borrower where FHA loan benefits are concerned. What FHA refinance options should you know about before choosing the right kind of loan for you? FHA loans can be used to refinance conventional, VA, USDA, and other non-FHA mortgages. You can refinance an existing FHA mortgage with cash-out refinancing to convert the | more...

 
HUD Announces Settlement In California Fair Housing Sexual Harassment Case

HUD Announces Important Change To FHA Cash-Out Refinance Loan Program

The Department of Housing and Urban Development has issued a mortgagee letter announcing a major change to the FHA Cash-Out Refinance Loan program. Effective September 1, 2019, the loan-to-value ratio for FHA cash-out loans is reduced from 85% to 80%. All FHA cash-out refi loans with FHA case numbers issued on or after 1 September 2019 will have the lower LTV. This has the effect of reducing the amount of cash back to the borrower on the transaction. The HUD press release states that the reduction is intended to protect against weaknesses in the housing market, and cash-out refinance loan defaults. The FHA has experienced an overall increase in cash-out loans as high as 250 percent according to HUD. In light of that statistic and other data, the FHA concluded | more...

 
Mortgage Loan Interest Rates: What You Need To Know About Trends

Can I Do An FHA Cash-Out Refinance On A Rental Property?

When you buy a home with a mortgage loan, you generally have the option later down the line to apply for cash-out refinancing on that home. It doesn’t matter if you have a conventional mortgage, VA loan, or an FHA home loan, cash-out refinance options are available once you have made a minimum amount of mortgage loan payments (not ideal) and the cash-out options only get better the longer you pay on the original mortgage. Why is cash-out refinancing not such a great deal in the earliest days of your mortgage? Partially because you haven’t paid down the loan enough and/or waited for your property values to increase long enough in the right circumstances to get much value out of the property. Generally speaking, the longer you pay on the | more...

 
FHA Home Loan Rules For Refinance Loans

FHA Home Loan Rules For Refinance Loans

When headlines about home loan interest rates start appearing with the terms “new lows” or “lowest in months”, the minds of many home owners turn to refinancing. It’s very tempting to explore refinance loan options when rates begin falling; saving more money over the lifetime of the refinance loan is appealing and some borrowers feel they didn’t shop around aggressively enough for a better interest rate the first time around. When you are getting ready to refinance, what do you need to keep in mind in terms of FHA refi loan rules? Here are some areas to ponder. Basic Refinance Loan Transactions FHA refi loans come in a few basic types according to the FHA Lender’s Handbook, HUD 4000.1: Cash-out refinances: designed to pull equity out of the Property. No | more...

 
FHA Refinance Options

Why Do People Use Cash-Out Refinancing?

There are many reasons why people want to convert the value of their home to cash. Some people use FHA cash-out refinancing to pay off credit cards or help lower student loan debt, others have needs they want to meet around the house whether its’ home improvement in general, building a rec room, or replacing old appliances. But whatever your cash-out refinance loan needs, there are some important issues to consider that may help you decide whether FHA cash-out refi options are right for your plans. Why do we say this? Because some people choose to pay for their home improvement projects or other expenses using a cash-out refi loan while others consider using a credit card to pay for them instead. What’s the best choice? In many cases the | more...

 
https://www.fhanewsblog.com/2019/07/myths-about-home-loans-and-credit/

FHA Cash Out Refinancing Advice

What do home owners need to know about FHA cash-out refinancing? There are a number of questions to ask yourself before you commit. Refinancing can be a big financial help for a home owner but getting the right loan for your needs is half the battle. Ask Yourself If You Need Cash-Out Refinancing And Why A cash out refinance loan can help you thanks to the cash back on the transaction, but is cash back really what you need? If your real goal is to improve the home, for example, you can apply for a different type of refinancing that could provide more money for those improvements than a cash-out refi loan could. An FHA 203(k) rehab loan is perfect for those who need to do home improvement projects and | more...

 
FHA refinance loans: Questions To Ask

FHA Refinance Loans: Questions To Ask

Are you ready for a refinance loan? Maybe you seek a lower interest rate, or maybe you want to get cash back on the transaction? Whatever your motivation for applying for an FHA refinance loan, there are some important questions to ask yourself-the answers will help determine your readiness for the new loan. Have I Checked My credit Score and History Lately? All consumers are entitled to a free credit report, which you should review long before attempting a mortgage refinance. If you find any evidence of identity theft, outdated or erroneous information, you will need time to contest that problem. Contesting your credit report could involve (in the case of identity theft and related issues) filing police reports, working with investigators, etc. Do not waste your time paying for | more...