Articles Tagged With: FHA Refi

FHA Home Loans And The Biggest Credit Mistake You Can Make

July 7, 2022

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 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...

May 6, 2022

FHA Refinance Loans: What You Should Know

By Bruce Reichstein

If you are considering your FHA refinance loan options, there are several things you should know about refinancing with FHA before you apply. There are a variety of refinance loan options available-under FHA loan rules you can apply to refinance a home loan with cash out, you can also apply for an FHA Streamline Refinance that has no cash back to the borrower but also has no FHA-required credit check. Your participating lender is permitted to require an appraisal and/or credit check depending on lender standards and other variables. Borrowers in conventional loans or other non-FHA mortgage loans can refinance using the FHA Cash-Out Refinance option or choose an FHA refinance (with required credit check and appraisal) in the no-cash-out version of this type of FHA refinancing. FHA Streamline refi | more...

April 4, 2022

Need An FHA Refinance Loan?

By Joe Wallace

What do you need to know about FHA refinance loans? If you are considering your options and aren’t sure about some aspects of the FHA refinance process, you may find some answers to your questions below. FHA Refinance Loan FICO Score Requirements FHA refinance loans typically require credit checks and appraisals. There is one exception. There is no FHA requirement for either when you are applying for an FHA Streamline Refinance mortgage. If you need to refinance but worry about your ability to qualify for an FHA mortgage due to credit issues or other problems? Contact the FHA directly at 1-800 CALL FHA. Request a referral to a local, HUD-approved housing counselor who can assist you with planning, budgeting, and other important credit application issues ahead of any purchase or | more...

March 14, 2022

When Can I Refinance An FHA Loan?

By Bruce Reichstein

When can I refinance an FHA loan? That is a common question and one that is addressed in the FHA loan handbook, HUD 4000.1. There are rules that govern how and when you can refinance your home loan and those rules will vary depending on the type of refinance loan you seek. Most FHA home loans, including refinance loans and even reverse mortgages, require occupancy as a condition of loan approval. In the case of FHA Cash-Out Refinance loans, that occupancy is required for at least one year prior to the new loan. From HUD 4000.1: “Cash-out refinance transactions are only permitted on owner-occupied Principal Residences. The Property securing the cash-out refinance must have been owned and occupied by the Borrower as their Principal Residence for the 12 months prior | more...

October 8, 2021

Important Issues About Buying A Home With An FHA Loan

By Bruce Reichstein

What are your concerns about buying a home with an FHA home loan? For some, it’s about how much the loan will cost month-to-month, while for others the issue of the loan’s long-term cost can be a worry. If you aren’t sure how the FHA home loan program works, you’ll definitely want to read on. What You Can Buy With An FHA Mortgage In general, FHA home loans are for owner/occupiers who want to buy a home to use as their primary residence. You can buy a property with as many as four units as long as it meets FHA minimum standards and you are financially qualified for the mortgage loan. FHA loan applicants may apply for any type of FHA loan offered by a participating lender including mobile home | more...

May 28, 2021

Which Refi Is Right For You?

By Bruce Reichstein

Do you need to refinance your home loan? There are plenty of choices, but two FHA loan products stand out for those who need lower payments or who want to get cash back on their refinance transaction. There are several FHA loan options available when it is time to refinance a home loan. Two of those are FHA cash-out refinancing and FHA Interest Rate Reduction Refinance loans, also known as an FHA IRRRL. Which loan should you apply for? This choice should be informed by your specific needs or goals. Do you want to refinance to get a lower monthly payment? Or do you want to take equity out of the to pay for home improvements, pay off credit cards or student loans? One type of refinancing is definitely better | more...

March 25, 2021

Uses For An FHA Cash-Out Refinance Loan

By Joe Wallace

If you are thinking about applying for a cash-out refinance loan, you likely have some ideas about what you want to use the money for. FHA Cash-Out refinance loans allow the homeowner to convert equity built up in the home and take it out in cash. The amount of cash back is determined once the original loan and the closing costs of the new loan have been dealt paid. How to use the money? Some want an FHA cash-out refi to do home improvements with no restrictions on how the cash gets used. These loans don’t have the same restrictions on how the funds are used when you compare them to the FHA 203(k) Rehabilitation loan which allows a refinance and improvements to be made using loan funds. But | more...

March 16, 2021

Pre-Purchase Home Loan Advice

By Bruce Reichstein

Looking for a home loan that’s affordable and doesn’t require 20% down? The FHA loan program has something for you. Some are surprised to learn that FHA mortgages are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. FHA Loan Options Are Diverse You can buy much more than a typical suburban home. Options include getting a condo unit with an FHA mortgage, building a home on your own lot from the ground up using an FHA One-Time Close construction loan, or you can refinance your existing mortgage. That mortgage can be an FHA or non-FHA mortgage using an FHA loan. No matter what kind of home loan you need–a purchase loan, a rehab loan, a refi loan–there are | more...

March 5, 2021

Questions You Should Be Asking About FHA Refinance Loans

By Bruce Reichstein

Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are low. At press time, the rates in March of 2021 are rising, but FHA mortgage loan rates have up to this point still remained below the three percent line, so it’s still a good idea to consider your refinance loan options if you want a lower interest rate. Remember, rates are subject to change and in 2021. We’re going to see a LOT of rate changes if current indicators provide any clues to the future or mortgage loan interest rates. Mortgage loan interest rates last year back in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other | more...

November 25, 2020

Prepare Now For Your Refinance Loan In 2021

By Joe Wallace

Are you excited by the historic low interest rates that happened in 2020 and have your eye on a refinance loan in the new year come 2021? Do you need a lower mortgage payment? Perhaps you would like a lower interest rate on your current home loan? Some borrowers have different needs–some feel stuck in adjustable rate mortgages and want to refinance into a fixed-rate mortgage loan instead. These scenarios can be addressed with an FHA refinance loan and if you’re thinking about applying in 2021 its best to become as familiar as you can with the types of refinance options open to you when it’s time to refinance a non-FHA mortgage or an existing FHA home loan. Consider An FHA Refinance Loan In 2021 The same kinds of preparations | more...