Articles Tagged With: FHA Refi

July 2, 2018

Should I Consider An FHA Reverse Mortgage?

Should I consider an FHA reverse mortgage? Many qualified borrowers are asking that question now in light of recent housing market stats indicating rising property values well into 2019. A Zillow.com report (through May 2018) indicates that housing is on an upward trend at the time of this writing. Home values have increased more than eight percent according to the Zillow report, and the same report says values could go up another 6.5% in the next year. Rising home values in U.S. housing markets means that borrowers applying for appraisal-required refinancing or FHA Reverse Mortgages (also known as FHA HECM loans) may discover their home is worth more than they realized. Naturally, this won’t apply in every single housing market, trends vary nationwide and your experience may vary based on | more...

June 29, 2018

Remodel Your Home With An FHA Rehab Loan

By Joe Wallace

Are you thinking of selling your home? Need to think about increasing the value of your house before you put it on the market? Or maybe you want to remodel the home you’re planning on staying in long-term and are looking for the best return on investment or ROI for a remodeling project? FHA 203(k) Rehab loans can help you invest good money for a sound ROI on upgrades, improvements, and repairs. You can remodel your home with an FHA 203(k) rehab loan as a new purchase loan or as a refinance loan for your current mortgage. What types of remodeling projects have a good ROI and are allowed under the parameters of the FHA rehab loan program? The answer may depend on whether you apply for a standard or | 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...

June 19, 2018

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

By Bruce Reichstein

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...

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...

May 7, 2018

FHA 203(k) Rehab Loans: What’s A Contingency Reserve?

By Joe Wallace

If you are interested in buying or refinancing a home to renovate with an FHA mortgage, the FHA 203(k) loan is a great place to start exploring your options. The FHA 203(k) rehab loan comes in two varieties-one for larger and more ambitious projects, and a smaller “limited” 203(k) that offers smaller loans for simpler repairs/renovations. The 203(k) loan involves hiring contractors and having work done according to both FHA home loan minimum standards, but also requires that the home be brought into compliance with applicable building codes. Lender standards, state law, and FHA home loan rules will affect how this transaction is conducted. One FHA requirement is the FHA rehab loan contingency reserve, which you can think of as a “rainy day fund” in case there are unexpected costs | more...

May 1, 2018

Why Do People Refinance Home Loans?

By Bruce Reichstein

Why do people refinance home loans? The answers are diverse since there is more than one reason to refinance AND more than one application for an FHA refi loan. Refinancing To Get Lower Monthly Payments One powerful motivation to refinance is to get a lower mortgage payment each month. Existing FHA mortgages can be refinanced into FHA Streamline Refinancing mortgages, which feature no FHA-required new credit check or appraisal. Your lender may require a credit check and/or appraisal if lender requirements or circumstances warrant. Some Streamline Refinance loans have to include a new credit check if the borrower chooses add-ons to the loan that increase monthly payments over a certain threshold. FHA Streamline Refinance loans must generally result in a tangible benefit to the borrower including a lower payment. Non-FHA | more...

the importance of credit for home loan approval

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...