Articles Tagged With: FHA Cash-out Refinance

June 19, 2018

Get Money Out Of Your Home With FHA Cash-Out Refinancing

Do you want to get money out of your home with an FHA Cash-Out refinance loan? Need shore up your rainy day fund or pay down certain kinds of debt? Many borrowers want to do this but aren’t sure if they can use the funds from such a loan for the purposes they have in mind. Fortunately, FHA loan rules don’t specify approved or unapproved uses for the money you get when you refinance using a Cash-Out loan. The FHA Loan Handbook, HUD 4000.1, describes FHA Cash-Out Refinance loans as follows: “A Cash-Out Refinance is a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in which the mortgage proceeds are not limited to specific purposes.” That is good news for borrowers who have been | more...

June 1, 2018

FHA Cash-Out Refinance Loan Credit Tips

By Joe Wallace

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 Loan-To-Value Limits: More Rules You Should Know

May 29, 2018

Can Military Members Refinance A VA Mortgage To An FHA Loan?

By Joe Wallace

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...

April 30, 2018

FHA Loans That Allow Home Improvements, Renovations, and Construction

By Bruce Reichstein

In addition to new purchase home loans and refinance loans, a borrower’s options for a mortgage also include loans that allow money for home improvements, renovations, and even construction. Know your FHA loan options before you choose a type of property or the kind of loan you seek. There are many ways to get additional funds to fix, rehab, or even build a home from the ground up. FHA New Purchase Home Loans There is an option with most FHA mortgages including new purchase loans that allows added funds for the purpose of buying and installing energy-efficient upgrades to the home. No matter what type of FHA mortgage you want, ask the lender about the FHA Energy Efficient Mortgage option which allows up to $6,000 or more depending on the | more...

FHA Home Loans For Manufactured Housing Classified As Condo Projects

April 26, 2018

FHA Refinance Loan Myths

By Joe Wallace

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...

Home Loan Anxiety Part 2: Credit Issues Before Applying For An FHA Mortgage

April 20, 2018

FHA Refinance Home Loans: Getting Ready

By Bruce Reichstein

Do you know what you need to get ready for an FHA refinance home loan application? There are several areas you can prepare in before it’s time to sign the loan application paperwork. Check Your Credit Reports-EARLY FHA refinance loans should be treated in the same way your original home loan application was handled in terms of checking credit, avoiding new lines of credit before and during the refinance loan process, and trying to lower your debt ratio before the application. Decide The Right Refi Loan For You Your preparations for the new loan may depend greatly on the type of FHA refinance loan you are looking for; cash-out, no cash out, Streamline Refinancing, rehab refi loan, etc. How are these loans different? There are too many aspects to discuss | more...

April 3, 2018

More FHA Refinance Loan Tips

By Joe Wallace

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...

April 2, 2018

FHA Refinance Loan Top Five Tips

By Bruce Reichstein

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...

Can I Use My GI Bill Housing Allowance For An FHA Home Loan?

March 14, 2018

Who Can Apply For FHA Cash-Out Refinancing? What You Need To Know

By Joe Wallace

Who can apply for FHA cash-out refinancing? Believe it or not, the FHA loan handbook, (HUD 4000.1) has guidelines in this area you should know. Some home owners purchase their homes and choose to refinance. But others might inherit their property and decide at that time to explore their cash-out refi loan options. What does the FHA have to offer? FHA Cash-Out Refinance Rules-The Basics FHA cash-out refi loans have an ownership and occupancy requirement; not just anyone can apply for an FHA cash-out refinance loan. HUD 4000.1 instructs the lender: “Nonprofit agencies, state and local government agencies and Instrumentalities of Government are not eligible for cash-out refinances. Income from a non-occupant co- Borrower may not be used to qualify for a cash-out refinance.” That seems basic enough, but this | more...

March 14, 2018

Reasons To Refinance With An FHA Mortgage

By Bruce Reichstein

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...