Getting out of debt often requires some type of debt consolidation loan. People that are in over their heads may feel like they are drowning. Instead of letting the debt go, they take out debt consolidation loans. Essentially, it’s one large loan that pays off multiple debts. You then have one payment you make each month. This is different from debt settlement. You still have a loan you must pay. There are pros and cons to debt consolidation loans. In this guide, we’ll break down each option … [Read more...]
Home Equity Loan or Streamline 203K Refinance?
Do you wish you had the money to make changes to your existing home? Maybe you wish you could have granite countertops, a new roof, or new flooring. Or maybe you are tired of the color of your home, either inside or out, but do not have the cash to get it painted by a professional or the time to do it yourself. You could get a home equity loan and make payments on a second mortgage, but the simple solution is the streamline 203K loan, otherwise known as the rehab loan. This great loan was once … [Read more...]
Refinance an FHA Loan to a Conventional Loan – Should You?
If you were like many other first-time homebuyers, you took out an FHA loan. It helped you get a loan with a small down payment. It also had flexible guidelines. Now that you have owned your home for a while, though, you may be ready for a different loan. If you want to get rid of the mortgage insurance, the only way to do it is with a conventional mortgage. How do you know when the time is right? What is Your LTV? The best place to start is with your LTV. This stands for loan-to-value ratio. … [Read more...]
How Soon Can You Refinance an FHA Loan?
Refinancing an FHA loan can be done at any time. The FHA doesn’t have regulations regarding how long you must have the loan first. However, a lender may have some specific requirements. The most common requirement is to have the loan for at least 6 months. They call this seasoning. It gives the lender a chance to see that you can make the payments on time. It also depends on the type of loan you refinance into as you have choices. Here we discuss your options and what you need to know. FHA … [Read more...]
Best Loan Options for a Quick Refinance
You can refinance in a matter of a couple of weeks if you play your cards right. If you have a government-backed loan, they each offer streamline programs. These programs require minimal documentation and no appraisal. If you provide everything the lender needs right away, you can usually get your loan closed in a week or two. FHA Streamline Offers a Quick Refinance If you currently have an FHA Streamline loan, you may be eligible for the FHA Streamline. You may qualify if you made your last … [Read more...]
Avoid These Common Refinancing Traps
Refinancing your home might seem like a great idea. You hear you can save money and/or lower your rate. What do you have to lose? Unfortunately, there is plenty at risk. Before you jump in and refinance, understand the most common traps. Refinancing isn’t always the best idea. Avoid these common issues and you can protect one of the largest investments in your life. Using All of Your Equity You have equity so you want to use it. Who wouldn’t? But should you? The real estate industry is … [Read more...]
How Much Equity do You Need for a FHA 203k Refinance?
The FHA 203K refinance helps you remodel your home with little money out of pocket. It sounds too good to be true, doesn’t it? With only 2.25% equity, you can change the look of your home. The lender bases the 2.25% on the future value of your property. This isn’t the value of the home before repairs. It’s the value after you make the desired changes to your home. We discuss how this works below. A Single Close Loan The FHA 203K loan takes the hard work out of remodeling your home. You don’t … [Read more...]
How Long Does the FHA Streamline Refinance Process Take?
An FHA Streamline Refinance allows the refinance of your existing 1st mortgage. You don’t take any cash out with this program. Instead, you take out only what you owe. In exchange, lenders only require you to provide limited documentation. The streamline refinance process is often quicker than standard refinance loans. Lenders do less underwriting and require less documentation. The average lender takes between 2 and 4 weeks to close on the streamline loan. What is the FHA Streamline … [Read more...]
Should you Opt for a No-Cost FHA Streamline Refinance?
The FHA Streamline Refinance offers the chance to refinance with very little work. You don’t need income, asset, or credit verification. You don’t even need to re-appraise your home. What you do have to do, though, is pay closing costs. It’s the nature of the beast with any mortgage. Lenders are in business to make money. They make it off the interest they charge and the closing costs they collect. There is the option to secure a no-cost FHA streamline refinance. Does it make sense, … [Read more...]
Can I Switch Lenders With an FHA Streamline Refinance?
As an FHA loan holder, you have the option to do a streamline refinance. This means refinance with little verification. Your credit score and income don’t matter. The FHA only cares about your mortgage payment history. In fact, you can even owe more than your home is worth and qualify! It sounds too good to be true, right? It also sounds like you need to use the same lender. Luckily, you can switch lenders. You just need to transfer your FHA case number. The Benefits of Switching Lenders Many … [Read more...]