Articles Tagged With: FHA Cash-out Refinance

March 8, 2023

How Do FHA Refinance Loan Requirements Work?

How do FHA refinance loan requirements work? There are myths and misconceptions about FHA refinance loans; knowing how they work can help you decide if an FHA refinance loan is right for you. FHA Loans Are Available From Participating Lenders You will need to find a lender that participates in the FHA loan program to get an FHA refinance loan. You do not have to use your original lender to refinance into an FHA mortgage. More on that issue below. FHA Refinance Loan Requirements For Non-FHA Loans Yes, you can refinance a non-FHA home loan into an FHA mortgage. Refinancing non-FHA loans can be accomplished with FHA cash-out loans or no cash-out loans. You do not have to use your original lender to refinance from a non-FHA mortgage to FHA; | more...

February 17, 2023

Do You Need To Refinance?

By Joe Wallace

Do you need to refinance your home loan, but aren’t sure what the difference is between an FHA Streamline Refinance loan and FHA cash-out refinancing? These loans have important differences, beginning with the availability of cash paid to the borrower at closing time. One refi option permits cash back, the other does not. FHA Cash-Out Refinancing Loans FHA cash-out refi loans allow the borrower to be paid cash at closing when the costs of the new loan have been satisfied and the original loan has been paid off. These cash-out loans are offered by both FHA lenders and conventional lenders; why should a borrower choose an FHA cash-out refinance? Interest rates are generally lower on government-backed mortgages like FHA refinance loans. That said, your FICO scores will affect the actual | more...

February 8, 2023

Home Renovation With An FHA Loan

By Joe Wallace

There are two kinds of home renovation projects; the ones you plan and the unexpected renovation you may need to do if there is a sudden problem in the home after purchasing it. An unexpected home renovation can be caused by many things that were not a factor at the time your home inspection was done; a water pipe can burst, a stove can prematurely stop working, or storm damage could cause a leak in your roof. Repair experts and contractors will be quick to point out that even a home that passes an inspection can develop such problems through no fault of the builder or seller. An unexpected home repair situation isn’t uncommon for home owners, so what’s a borrower to do when the need arises? You can fund | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

January 23, 2023

FHA Refinance Loans For Your First Home

By Bruce Reichstein

Why should first-time home buyers start thinking about their FHA refinance loan options sooner instead of later? It’s not because you are actively planning to refinance, but there are circumstances which may make you reconsider your refi loan options. As a millennial home buyer, first-time homeowner, or any other type of borrower, unforeseen events or situations may have you re-thinking your long-term financial plans. There are FHA refinance loan options for first-time home buyers and new homeowners, but some are more appropriate for certain needs than others. FHA Refinance Loans For Upgrades, Repairs, And Home Improvements If your home is damaged in a storm, you experience a fire or flood, or need to repair your roof, an FHA 203(k) rehabilitation loan is the refinance you should ask a participating FHA | more...

January 10, 2023

Rent Or Buy? FHA Loans Can Help You Own Your Home

By Joe Wallace

Is it wiser to rent or to buy your home? For some borrowers, it makes more sense to make a mortgage payment than to commit to a monthly rental payment. These borrowers should definitely explore their FHA home loan options and compare the cost of renting to the costs of owning. FHA Loans Can Help You To Stop Paying Rent Buying your home with an FHA mortgage means no more waiting for the landlord to repair crucial areas of the home. Homeowners are free to schedule or make their own repairs or upgrades without having to wait for someone else to get around to scheduling those necessary appointments. Buying a home with an FHA mortgage means no more apartment hunting, paying application fees or security deposits, etc. FHA Mortgage Loans | more...

October 24, 2022

Is There An FHA Home Equity Loan?

By Joe Wallace

A home equity loan is one using the equity in your home for the loan’s collateral. What is equity? It’s defined as the current value of the property minus what you still owe on the existing mortgage loan. Does the FHA offer a home equity loan? On paper, the FHA does offer a loan that allows you to get cash back at closing time like a home equity loan but the two aren’t really the same thing. Here’s why. For a home equity loan a borrower typically gets loan funds in a lump sum with a fixed interest rate, similar to an FHA Cash-Out Refinance. Borrowers who default on a home equity loan may face foreclosure the same as a cash-out loan. And both loans have other things in common–especially | more...

August 8, 2022

What To Ask About FHA Refinance Loans

By Bruce Reichstein

Getting ready to refinance? Even if you are considering using the same lender that you got your mortgage from originally, there are some important questions to ask your loan officer about the refinance transaction. Do you know how much your loan will cost? Do you understand the differences between a simple refinance, an FHA Streamline refi loan, and other types of mortgages? Find out more today and get ready to find the best deal for your needs. FHA Refinance Loan Questions: How Much Will My Loan Cost? In the earliest stages of the refinance loan process, don’t expect to get exact figures, but do ask your loan officer for estimates based on the typical set of costs for the refinance loan you need. You may not be charged identical costs | more...

FHA Home Loans And The Biggest Credit Mistake You Can Make

July 7, 2022

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 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...

June 30, 2022

FHA Home Equity Loans?

By Joe Wallace

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...

May 23, 2022

FHA Refinance Loans Versus Loan Forbearance

By Joe Wallace

If you have an FHA mortgage and get into financial difficulty that makes it hard to make your current home loan payments, you might be wondering how to prevent the loan from going into default or foreclosure. Should you seek a loan forbearance in such cases, or try to get an FHA refinance loan instead? In some instances, forbearance is the right course of action but in others? A refinance loan may be the right choice. Loan forbearance is sometimes necessary to avoid loan default and eventual foreclosure. The Consumer Financial Protection Bureau defines loan forbearances as an arrangement where your lender, “temporarily to pay your mortgage at a lower rate or temporarily to stop paying your mortgage.” This may be needed in cases where a homeowner has had a | more...