FHA financing can help you buy a home with a low down payment. If you buy a condo, though, you’ll have to make sure it’s FHA approved. If it’s not, the process could be delayed. In some cases, you may not be able to secure financing at all. Find out why FHA approval is so important and why you should ask about it first. Why Condos Must be FHA Approved The FHA approves certain condo associations that meet their requirements. If an association doesn’t meet the FHA approved requirements, the FHA … [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...]
What are the Common FHA Streamline Closing Costs?
Do you want a lower mortgage payment? You can get it with the FHA Streamline loan. You don’t need to verify your income or the value of your home. It can be done quickly and save you money. Some borrowers lower their interest rate. Others save with today’s lower mortgage insurance rates if their loan is from before 2015. Either way, you pay the FHA Streamline closing costs. Here we look at the costs and how you can minimize them. Understanding the FHA Streamline Costs Like most other … [Read more...]
How to Solve Your Most Common FHA Loan Approval Woes
An FHA loan is a commonly-sought mortgage program by potential borrowers who would like to get a home loan but have problems either with their credit score or getting enough money to pay the conventional down payment requirement. An FHA loan is one of the housing programs established by the government to aid a significant chunk of the borrower market who cannot get a conventional mortgage. Because many lenders shy away from the risk of these types of borrowers, the FHA stepped in to cover for … [Read more...]
Are You Entitled to an UFMIP Refund When Streamline Refinancing?
The FHA said the upfront portion of the mortgage insurance premium (UFMIP) paid is not refundable. But there is an exception to this rule: when you refinance into another FHA mortgage. This UFMIP refund is very beneficial because it reduces the UFMIP on your new loan, lowering your base loan amount and your monthly payment in turn. Get help with your mortgage refinance.» UFMIP Refund When Refinancing If you are an existing FHA homeowner and refinancing into another FHA loan through a … [Read more...]
Defining Net Tangible Benefit in FHA Streamline Refinances
When you do an FHA streamline refinance, there must be something in it for you. This is called the net tangible benefit which is “a reduced combined rate, a reduced term or a change from an ARM to a fixed rate mortgage that results in a financial benefit to the borrower.” The showing of a net tangible benefit is an important, indispensable element in any FHA streamline refinance. Get in touch with a lender here.» Reduction in Combined Rate For starters, the lender is tasked to determine if … [Read more...]
Your Guide to Down Payment Assistance for FHA Loans
With an FHA loan, you can buy a home with as little as 3.5% down for the purchase price. That’s not all, you can seek assistance for your down payment and closing costs. These down payment assistance mechanisms clearly remove any hurdle to homeownership for first-time homebuyers and low- and middle-income households. Interested in getting a loan?» Finding Down Payment Assistance Back in the day, sellers or other parties with interest in the purchase transaction can fund the buyer’s down … [Read more...]
What Is the Maximum Loan Amount for an FHA Streamline Refinance?
At least with cash-out refinances, you know how much you can get based on the amount you plan to take out of your equity plus your outstanding loan balance. With streamline refinances, the maximum loan amount you can refinance for is subject to a number of factors, which we shall discuss below. Let’s help you find a mortgage lender to refinance.» Streamline Refinance Mortgage Limits To recall, the streamline refinance program administered by the FHA and coursed through lenders (i) aims at … [Read more...]
An FHA Mortgage in a Market of Rising Rates
There’s no doubt. Mortgage rates are going to continue its march forward and there’s little to no evidence of it going down. As housing inventory continue to stay in the low, creating an equivalent push of home prices up, it’s becoming harder and harder to find a home, and the mortgage for the needed financing. The question then hangs: what are the best mortgage options available in this climate of rising rates? We say you take a look at FHA loans. If you are a first time home buyer, … [Read more...]
Is an FHA Cash-Out Refinance Possible?
We all know that it is possible to refinance through FHA. What we’d like to know is if a cash-out refinance is allowed. Is it possible to turn a part of your equity into cash through FHA refinance? There are two types of FHA Refinance: through (1) FHA Streamline Refinance, and through (2) FHA Cash-out Refinance. So, the answer is a definite yes. FHA Streamline Refinance is HUD’s way to make refinancing quicker by waiving off certain documentation requirements. This program helps decrease the … [Read more...]