The FHA offers several programs that many borrowers don’t know about. The two most commonly misunderstood are the FHA Streamline and the FHA Short Refinance. Both programs have many benefits. But, they each pertain to a different audience. We’ll discuss each program below and how you can qualify for them. What is the FHA Streamline? The FHA Streamline refinance is for current FHA loan customers. It offers these homeowners the ability to refinance their current FHA loan. Homeowners don’t need a … [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...]
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...]
No FHA MIP Reduction in 2017
Not long after being sworn into office, President Trump undid the impending FHA premium cut.The reduction would have slashed 0.25% on the annual fee. The suspension was signed by the president right after his inauguration. The cut was announced by the outgoing HUD secretary Julian Castro earlier in January. This would mean around $500 savings from homes which cost $185,000. While that doesn’t sound like a huge deal of money, savings is still savings and every penny counts. This … [Read more...]
FHA Streamline Refinance’s Credit and Non-Credit Qualifying Options
The FHA Streamline Refinance does away with the usual voluminous documentation accompanying any refinancing transaction. And this streamline refinance program comes in two options: credit and non-credit qualifying. Let’s find out about their differences and similarities, and their overall implication to you should you choose either option. Do you qualify for an FHA streamline refinance?» Credit and Non-Credit Qualifying Guidelines Definition Non-Credit Qualifying This option does not … [Read more...]
3 Scenarios Where Refinancing is the Best Option
Today’s low mortgage rates are certainly an opportunity worth grabbing. You’ve been putting down payments on that home for five years. It could be tempting to see if refinancing can help ease the burden of paying that loan. If you have an existing FHA home loan, refinancing could be a great option if any of these three scenarios are applicable to you. 1. Planning to stay in the home for at least seven years Mortgage experts say that people stay in their homes for seven years, on average. … [Read more...]
FHA Streamline Refinance Info and Facts
IN THIS ARTICLE: • What Does an FHA Streamline Refinance do? • Qualifying • Utilizing an FHA Streamline with an Appraisal • Utilizing an FHA Streamline without an Appraisal • Shopping for FHA Streamline Quote What Does an FHA Streamline Refinance do? The FHA Streamline Refinance program is a special program for borrowers who already have an FHA mortgage loan. It is one of the simplest and easiest ways to refinance your mortgage. Unlike a traditional refinance an FHA Streamline Refinance … [Read more...]