FHA loans are for owner-occupied properties. Since it’s impossible to live in two places at once, you probably assume you can’t have more than one FHA mortgage at a time. Technically, you are right, but there are some exceptions to the rule. Compare Offers from Several Mortgage Lenders. HUD grants exceptions to borrowers that are in one of the following situations: You and your family have outgrown your existing home Your job relocated you and it’s not within a reasonable distance … [Read more...]
How to Lower Your Mortgage Payment Without Refinancing
Dealing with a high mortgage payment can be very taxing. If you sit there and wish your mortgage cost you less each month, but don’t want to refinance, you have options. It requires you to think outside of the box, but these tips will help you pay less for your mortgage each month. Ask for an Extended Term to Get a Lower Payment You don’t have to refinance in order to obtain an extended term. Lenders call this recasting your loan. You don’t have to pay closing costs or go through a lot of … [Read more...]
How Much Escrow is Required for a Refinance?
You want to refinance and think you have it all figured out. You know you need up to 5% of the loan amount for closing costs and you have that money set aside. But, did you also know that you need money for the escrow account? Get Matched with a Lender, Click Here. This account is set up to help you pay your taxes and insurance. Not all borrowers are required to set this account up; it depends on your loan type. For example, VA loans do not require you to set up an account for taxes and … [Read more...]
What Happens to FHA MIP When you Refinance?
When you take out an FHA loan, you pay more than just closing costs. You also pay MIP both upfront and on an annual basis. So what happens when you refinance your loan? Do you get the mortgage insurance premium back? Get Matched with a Lender, Click Here. Unfortunately, you don’t get your mortgage insurance premium back. But, there is good news if you decide to refinance into another FHA loan. This trick only works if you use the FHA streamline program. The streamline loan helps FHA … [Read more...]
When Can you Refinance Your FHA Loan?
If you are like thousands of other homeowners, you used FHA financing to buy your home. It makes sense to do so, especially if you had a lower credit score and only had a small down payment. What if you want to refinance the loan, though? Is there a waiting period to do so? The answer is that it depends. What type of refinance are you going to do? For example, are you going to take out another FHA loan? Are you going to go conventional? The answers to these questions will help you determine … [Read more...]
How to Avoid PMI With FHA Financing
You took out an FHA loan and want to get out of the PMI you pay. While it’s impossible to avoid PMI when you take out an FHA loan, there are ways to get rid of it. Unlike a conventional loan, FHA loans require mortgage insurance premium for the life of the loan. This means you can’t cancel the insurance just because you owe less than 80% of the home’s value. As long as you carry the FHA loan, you pay the insurance. The amount you pay will decrease slightly each year as you pay the principal … [Read more...]
Do Foreclosures Qualify for FHA Loans?
If you are in the market to buy a home, you might consider the opportunity to look at foreclosures. After all, they are generally sold at a fraction of the cost of the home’s value. If you plan to use FHA financing for the purchase, though, you might run into a little trouble. If the home is not in perfect condition or at least acceptable to the FHA, they won't guarantee financing on the home. Don’t worry though, this doesn’t mean all hope is lost. There is one way you can buy a foreclosure and … [Read more...]
How to Refinance a FHA Home Loan If You Have Bad Credit
You have an FHA loan that you want to refinance in order to get a lower payment. The only problem is that you have bad credit. How will you ever refinance? Get Matched with a Lender, Click Here. You can use one trick that the FHA provides. It’s called the FHA streamline loan and it allows you to refinance your FHA loan without verification of your credit. You can even have poor credit and still refinance your loan. How Does the FHA Streamline Loan Work? Only current FHA loan holders can … [Read more...]
Using 203K Streamline to Finance Home Improvement Costs
If you have your eye on a home that needs some fixing up, but that you think has great potential, there’s a great program for you. It’s called the FHA 203K streamline program. This loan program gives you funds to buy and renovate a home all in one loan. You don’t have to worry about taking out other loans or racking up your credit cards. The streamline program has certain restrictions, though. You can make home improvements, but they cannot be structural and cannot be too costly. Get … [Read more...]
Is a Mortgage Recast a Better Option Than a Refinance?
If you want to restructure your loan, you have a few options. You can recast, refinance, or just pay down your loan. Two of these options, the mortgage recast and refinance, require the help of a lender. The third option – paying down your loan, can be done on your own. Get Matched with a Lender, Click Here. We explore all three options for you below. What is a Mortgage Recast? You may have never heard of the mortgage recast. That’s because most people refinance; it’s all they know. The … [Read more...]