Articles Tagged With: FHA Cash-out Refinance

September 25, 2018

Types Of FHA Mortgages: Refinance Loans

FHA home loans come in both forward mortgages for purchasing homes but also refinance loan options. You can refinance a home with FHA cash-out loans, FHA Streamline loans, and Reverse Mortgages. The type of FHA refinance that’s right for you depends on your financial needs and goals, but there is a refinance loan option for most needs. Which one is right for you? FHA Cash-Out Refinance Loans FHA cash-out refinancing is for any mortgage, FHA or non-FHA. You do not have to have an existing FHA mortgage to apply for an FHA cash-out refinance and you do not have to use the same lender that issued your original mortgage. Cash-out refinancing requires a new appraisal and the amount of cash back to you depends on how much of your new | more...

September 21, 2018

FHA Refinance Loan Credit Questions And Answers

By Bruce Reichstein

FHA refinance loans have a set of guidelines for credit scores and credit history-do you know what it takes to be approved for an FHA refinance loan? There are some common questions about FHA refinance loans where credit is concerned, knowing the answers may help you a great deal. What Kind Of Credit Scores Do I Need To Be Approved For An FHA Refinance Loan? In general, FHA loan requirements include a FICO score at 500 or better for some loans, 580 and higher for maximum financing. These are FHA minimum requirements and do not reflect lender standards, which may be higher. Refinance loans with cash out will require certain FICO score ranges (lender provided) that are key to getting maximum financing. You will need to ask the lender about | more...

September 19, 2018

Sell Or Refinance With An FHA Loan?

By Joe Wallace

Which is the better option? Sell your home, or refinance your mortgage loan with an FHA refinance loan? Your financial needs and goals will determine part of the answer to this question, the nature of the housing market and how much you still owe on your mortgage loan will help inform the answer, too. FHA Refinance Loan Options For Those Considering Selling Their Property You can sell the home you’re currently in, or refinance it with an FHA cash-out refinance loan or an FHA rehab loan if you want to use FHA mortgage loan funds to repair or remodel the property. Why refinance instead of sell? Some borrowers think about selling because they want to move into a larger home. Refinancing isn’t an option for these people…or is it? The | more...

September 4, 2018

Five Things You Should Know About FHA Refinance Loans

By Bruce Reichstein

Five things you should know about FHA refinance loans include the fact that you can find an FHA mortgage to refinance any typical home loan, you can get a refinance loan with cash out, and you can refinance a home to remove an ex-coborrower, spouse, or other persons from the mortgage. #5: FHA Refinance Loans Are Available For Both Existing FHA Mortgages And Non-FHA Mortgages You may only refinance a mortgage using an FHA refinance loan, but the types of mortgage you can refinance include FHA, VA, conventional, USDA, etc. You do not have to have an existing FHA mortgage to apply for FHA refinancing. You are required to occupy the home being refinanced with the FHA mortgage, and refinance loans for secondary residences may be limited depending on the | more...

August 31, 2018

FHA Cash-Out Refinance Loan Options

By Joe Wallace

With home values on the rise in many housing markets, FHA borrowers are often tempted to consider applying for a cash-out refinance to take advantage of their new property values. A National Association of Realtors report says home values for existing construction increased from more than $190 thousand (2009) well over $275 thousand in 2018. That can translate into serious borrowing power for some home owners. But knowing your FHA cash-out refinance loan options is important; know the details before you apply for the loan! Who Qualifies For An FHA Cash-Out Refinance Loan? The legal title holder (presumably the original borrower or one of the original borrowers) who intends to remain or become an owner-occupier of the home may apply for FHA cash-out refinancing. HUD 4000.1, the FHA loan handbook, | more...

August 21, 2018

FHA Cash-Out Refinance Loan Rules You Should Know

By Bruce Reichstein

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 a cash out 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 | more...

Am I Ready To Apply For An FHA Mortgage?

August 21, 2018

FHA Cash-Out Refinance Loans: How Soon Can I Apply After Buying My Home?

By Joe Wallace

How soon can I apply for an FHA cash-out refinance loan after buying my home? Some borrowers want to know because they have purchased a home using an adjustable rate mortgage and may be nearing the end of the introductory interest rate period sometimes known as the “teaser rate” period. Others find themselves in a housing market with quickly rising property values and want to take advantage of those rising values. FHA loan rules have some specific things to say about the timing of cash out refinance loans, and who can apply for them. FHA Cash-Out Refinance Loans Are For Any Type Of Mortgage You don’t have to have an existing FHA loan to apply for an FHA cash-out refinance. You can refinance a USDA loan, VA mortgage, conventional loan, | more...

Can I Buy A Rental Property With An FHA Mortgage?

August 13, 2018

FHA Mortgages: When Is Cash Back Allowed?

By Bruce Reichstein

When is cash back to the borrower permitted with an FHA home loan? Some borrowers have the idea that they will apply for a mortgage loan that has a higher amount than the money required to purchase the home and pay for any fees that are allowed to be included in the loan amount. But is this possible? FHA mortgage loan rules that govern cash back to the borrower are found in HUD 4000.1, which says that in most cases cash back to the borrower in this manner is not possible where new purchase, “forward” mortgages are concerned. Money Back Rules For FHA Forward Mortgages A forward mortgage, or FHA purchase loan, can only be for appraised value or the asking price (whichever is lower) and any costs included in | more...

August 9, 2018

When Should I Refinance My Home Loan?

By Bruce Reichstein

When should I refinance my home loan? That is an important question for borrowers who realize they want to cash in on rising property values, commit to home improvements, or get into a lower monthly mortgage payment. FHA refinance loans can help. FHA Refinance Loans For Conventional And Other Non-FHA Mortgages Did you know you can refinance into an FHA mortgage from a non-FHA home loan? Compare interest rates on your existing mortgage to those offered for FHA refi loans to see if it’s to your benefit to refinance. Are you in a conventional adjustable rate mortgage and want to get into an FHA fixed-rate loan? This is an option, too. Fixed rate mortgages are an excellent choice if you decide to remain in the home long-term and want to | more...

July 27, 2018

The Credit Check For FHA Cash-Out Refinances

By Bruce Reichstein

Is the credit check for an FHA cash out refinance loan the same as for a new purchase home loan? Borrowers want to know how their credit will measure up to lender standards when it’s time to apply for a refinance loan. Some make the same common mistakes in the months leading up to a refi loan application that others do when applying for a new purchase home loan. What can you do to increase your chances at refinance loan approval? Treat An FHA Cash-Out Refinance Loan The Same As Your Original Mortgage FHA cash out refi loans require both a new credit check and a new appraisal. The reason for the new appraisal is to make sure you are getting the value in your home that market values currently | more...