Articles Tagged With: FHA Cash-out Refinance

January 24, 2022

FHA Refinance Loan Options

No two refinance loan programs are exactly identical–depending on the program and the lender you may find terms and conditions vary. For example, where FHA Home Equity Conversion Mortgages are concerned, there is a minimum age you must be (62 or older) to qualify. That is NOT true of FHA Cash-Out Refinancing or FHA Simple Refinance loans. What’s more, FHA refinance loans do not have the same terms and conditions. For example, these refinance loans may, depending on the participating lender, allow you to refinance an adjustable-rate mortgage (ARM) into a fixed rate but also may permit you to go from one adjustable-rate mortgage to a new ARM. And that loan could be a 15-year or a 30-year loan depending on your financial needs and goals. There are many choices | more...

January 14, 2022

Advantages Of An FHA Cash-Out Refinance Loan

By Bruce Reichstein

Do you know the advantages of an FHA cash-out refinance loan? There are several, especially if you are considering an FHA loan to get money to renovate your existing home. FHA Cash-Out Refinancing Loans: Good For FHA and Non-FHA Mortgages FHA cash-out loans are for all mortgages, FHA, or not. You can refinance a USDA, VA, conventional, existing FHA loan, etc. The rules to qualify are the same no matter what kind of home loan you wish to refinance, and the longer you have been making mortgage payments, the better. FHA Cash-Out Refinance Loan Funds Are Not Restricted The uses you put your cash-out refinance money towards is not restricted; you can use your cash-out funds any way you see fit. That includes debt consolidation, vacations, and home repair. FHA Cash-Out | more...

the importance of credit for home loan approval

January 13, 2022

Refinance Loan Issues To Consider

By Joe Wallace

Are FHA refinance loans only permitted to refinance existing FHA mortgages? The short answer is that it depends on the loan you wish to refinance and why. Some FHA refi options can be used for any mortgage loan, while others are only for existing FHA mortgages. The First Thing You Should Know FHA mortgages are not need-based loans and neither are most refinance options under the FHA Single-Family Home Loan program. FHA loans have no income limit, no household income caps, and are not specifically targeted at a first-time borrower. If you have a stable income, have been in the job market for more than a year (two years or better is considered ideal), and have 12 months or more of on-time payments, you may be able to qualify for | more...

December 30, 2021

Qualifying For An FHA Loan Or Refinance Loan

By Joe Wallace

FHA home loans and refinance loans feature similar requirements in terms of FICO scores, credit history, and responsible credit use. When you want to refinance a home loan, it’s smart to treat the process exactly the same as you did when you applied for your first mortgage where applicable. But not all borrowers have the luxury of taking a year or more to plan and save for the loan. Some must act quickly because their homes have been damaged or destroyed in a natural disaster, or they have a job-related relocation or some other issue that requires a faster approach to the loan. Some borrowers need a new purchase loan; a job relocation or an increase in family size may warrant buying a larger home. Knowing the FHA loan policy | more...

December 27, 2021

FHA Refinance Loan Options In 2022: FHA Cash-Out Refi

By Joe Wallace

How prepared are you to apply for an FHA Cash-Out Refinance loan? Some borrowers don’t realize that some FHA refinance options require more preparation than others. FHA Cash-Out loans have an FHA-required credit check and appraisal; saving for these expenses and your closing costs is a smart idea to maximize your borrowing power and keep your monthly payments lower. Financing your allowable closing costs may hike your mortgage payments; smart borrowers try to decide in advance how high the payment can go before it is too high. What does it take to qualify for an FHA Cash-Out Refinance and get your application approved? Aside from the basics like FICO scores and your record of on-time payments, you will need to have lived in the home as your primary residence for | more...

December 8, 2021

Is 2022 Your Year To Refinance?

By Joe Wallace

Are you thinking about refinancing your home in 2022? There are several options to choose from including FHA cash-out refinancing. FHA Cash-out refinance loans are an option for those who have used the home as their primary residence for the last 12 months as of the assignment of the FHA case number. That means that FHA cash-out refi loans are not allowed for investment properties, second homes, vacation homes, etc. If you don’t plan to use a property as your home, the home may not eligible for many FHA loan options. There is one exception–those who inherit property may refinance it without a minimum occupancy requirement. There is one caveat according to the FHA Single Lender’s Handbook: “In the case of inheritance, a Borrower is not required to occupy the | more...

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

By Joe Wallace

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

October 7, 2021

Need A Refinance? Avoid Getting Scammed

By Joe Wallace

In 2021, the official site of the Minnesota Attorney General included a page warning consumers not to fall for home loan refinance scams. During the pandemic, many borrowers found themselves in need of refinancing or other moves to make home loans more affordable in times of reduced income and other financial stressors. If you have been looking to get out of an adjustable-rate mortgage, or are trying to get a lower monthly payment on a fixed-rate home loan, you may notice third parties reaching out to you via e-mail, social media, text messages, or phone calls offering to help you refinance your mortgage. “But be careful”, the Minnesota AG official site warns, “Some homeowners have become the target of fraudulent refinancing offers” that sometimes begin with a phone call from | more...

October 5, 2021

Refinancing With An FHA Loan

By Joe Wallace

Refinancing a mortgage can have pros and cons–knowing them both can help you make a more informed choice about the type of refinance option you choose. There are cash-out refinance loans, no-cash out, and for those with existing FHA mortgages, an FHA Streamline Refinance option that usually requires some type of benefit for the borrower. The pros and cons of a Streamline Refinance are fairly simple. In the “pro” column, you get something that benefits you in the form of a lower monthly payment or lower interest rate. Or you get out of an adjustable rate mortgage into a fixed-rate loan. In the “cons” column, the biggest drawback is–depending on the term of your new loan compared to the term of your original mortgage–a renewed loan term. If you had | more...

September 1, 2021

Using Your Home Equity With An FHA Cash-Out Refinance Loan

By Joe Wallace

There are many uses for an FHA cash-out refinance. These FHA refi loans can be used to refinance FHA and non-FHA mortgages alike, and the funds from cash-out refinance loans can be used for any purpose including paying off credit card debt, making home improvements, and even paying for luxury items like cars or boats. But what is the best use of cash-out refinance loan proceeds? Like many similar home loan questions, the answer depends greatly on the financial needs and goals of the borrower. But there are some issues you should consider when deciding what to do with the money you get from an FHA refinance of this type. An FHA cash-out refinance loan is a good option for someone who has built up equity in their property over | more...