Articles Tagged With: FHA Cash-out Refinance

August 21, 2018

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 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...

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...

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...

Am I Eligible For An FHA Mortgage After Foreclosure?

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...

July 23, 2018

When It’s Time To Refinance Your Mortgage

By Joe Wallace

You might not be thinking about an FHA refinance loan today. Or tomorrow. But eventually the idea of refinancing your mortgage will become an option worth examining whether it’s because housing market conditions have increased your property values and you want to take value out of your home in cash, or getting into a lower mortgage payment, or even to get out of an adjustable rate loan and into an FHA fixed rate mortgage. When it’s time to refinance your mortgage, it’s important to ask yourself some important questions. The answers will tell you a lot about what kind of refinance loan to pursue. Do You Want Cash Back On Your FHA Refinance Loan? If taking cash back on your refinance loan is a priority, the FHA Cash-Out refinance option | more...

July 17, 2018

FHA Home Loans And Your Credit Report: Know Your Rights

By Bruce Reichstein

When you look for advice about getting approved for an FHA home loan, you will find that many encourage potential borrowers for FHA new purchase home loans and FHA cash out refinancing are urged to request a free annual credit report. Free credit reports are your legal right and you are entitled to one free credit report per year from each of the three major credit reporting agencies. Those agencies are TransUnion, Equifax, and Experian. But in addition to the right to a free annual credit report, did you know you have other rights under federal law that apply to your credit reports? All consumers in the United States have the legal right under federal law to contest inaccurate or incomplete information in your credit reports. This right is discussed | more...

July 13, 2018

Should You Sell Your Home? The FHA Cash-Out Refinance Option

By Joe Wallace

There are a lot of websites urging home owners to consider selling your home, especially for those who own homes on the West Coast. Home owners on the West Coast and other increasingly profitable housing markets have the potential (at the time of this writing) to earn more than ever by selling a house. But borrowers looking to get cash from their homes in a housing market where property values are going up have another option to consider. It doesn’t matter if your home is in San Jose, San Francisco, Seattle, or Nashville, if your home could appraise for more money today due to the influence of a hot housing market? It could be worth an amount worth considering in the form of an FHA cash-out refinance. If you are | more...

June 27, 2018

FHA Cash-Out Refinancing Loan Occupancy Requirements

By Bruce Reichstein

FHA cash-out refinance loans are a great way to cash in on the value of your home, but this FHA refinance option has some specific rules about occupancy and how it affects your eligibility for cash out. The FHA loan handbook, HUD 4000.1, begins by explaining that cash-out refi loans are only for owner-occupiers. “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences.” Furthermore, owner-occupiers are the only ones who can have their income counted when it comes time to qualify for an FHA cash-out refinance. “Income from a non-occupant co-Borrower may not be used to qualify for a cash-out refinance.” That’s an aspect of FHA cash out loans that isn’t discussed too often, but it is an important one to know. There are other requirements-in most cases, a | more...

June 26, 2018

Are You FHA Refinance Eligible?

By Joe Wallace

Are you FHA refinance loan eligible? There are some very simple requirements refi loan applicants must meet in order to qualify for an FHA refinance loan. Do you know what they are? Factors That Affect Your FHA Refinance Loan Eligibility FHA refi loan eligibility may depend on a borrower’s FICO scores in some cases, along with the number of house payments you have made at application time. FHA minimum FICO scores include a range between 580 or better for maximum financing. Another factor in knowing if you are eligible for an FHA refinance loan is the kind of refinance loan you seek; FHA Cash-out Refinancing and FHA no Cash-Out refinance loans can be used for FHA or non-FHA loans alike. The same is true of FHA Rehab Loans processed as | more...