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- Can the seller pay my closing costs?
Yes. The seller can pay up to 6% of your recurring & non-recurring closings costs.
- What is the FHA up front mortgage insurance premium (UFMIP) for?
HUD requires two mortgage insurance policies on FHA loans to protect against losses in the event of a default. The up front mortgage insurance premium is a one time charge usually financed into the loan. As time passes a portion of the premium is paid out each month until the premium is depleted. At which time the up front mortgage insurance policy is dropped off.
- Can I get the up front mortgage insurance premium (UFMIP) refunded?
Yes. If you pay off your FHA loan while a premium remains in the UFMIP account the remaining balance is refunded to you directly from HUD.
- What is MIP?
MIP is an FHA loan term that stands for mortgage insurance premium. Most FHA loans have MIP that is paid monthly until the original balance is paid down to 78% of the original note amount. At that time the MIP drops off permanently. This does change from time to time. Best to ask us when we speak for current MIP information.
- I have one FHA loan already. Can I get another FHA loan?
HUD allows for households to obtain a second FHA loan in certain situations. To see if you qualify for a second FHA loan complete this form.
- Can I purchase an Investment Property on a FHA Loan?
No. FHA Loans are only approved for primary residence purchases.
- What is an FHA streamline refinance?
FHA borrowers are able to take advantage or lower interest rates using a simply refinance program called the FHA streamline refinance. For complete details visit our FHA streamline refinance page.
- What out-of-pocket expenses will I have when refinancing?
None. Often the FHA streamline refinance is done with no closing costs. In some cases, depending on the borrower’s objective (i.e. lowest interest rate), there can be closing costs which are generally paid for out of pocket. We can also advance you your escrow balance refund to fund the money due at closing in advance.
- Do I have to use my current lender to refinance?
No. If you want a new lender, you can choose from any mortgage lender on the FHA-approved lender’s list. Make sure that you shop around for your refinancing loan. By going to several lenders, you will get more offers and you can choose the best loan terms for you and your family. Be careful of lenders that try to deceive you into thinking they are the only lender that can finance your FHA loan. The FHA has a long list of approved lenders, and you should shop around.
- Do I have to go through the credit check and appraisal process again when refinancing?
Yes. The FHA refinance loan does require at a minimum a mortgage history check which comes from credit.
- Can I include the cost of home improvements in my FHA streamline refinance?
You are allowed to include up to 5% of the original purchase price of your home for qualified energy efficiency improvements in your refinance. Any other home improvements are eligible when doing an FHA 203K rehabilitation loan.
- Can I take cash out of an FHA streamline?
No. streamline from the FHA is only for the purposes of obtaining a better interest rate on your mortgage loan in order to save you money over time.
- What is an FHA Cash Out Refinancing Loan?
This is the type of refinancing loan the FHA offers for those borrowers who want to take cash out of the equity in their homes.
- What can I use the cash I take out of my home for?
Anything you want. Make sure you consult your lender to see if they have any restrictions on what you can use the money for.
- Can I consolidate debt with a Cash Out Refinance Loan?
Yes. As a matter of fact, many lenders prefer that you do consolidate all of your debt into your new loan because it makes you less of a credit risk for them.
- How much cash can I take out of my home equity?
You are allowed to take up to 80% of the current FHA appraised value. On top of this you are also allowed to finance the FHA UFMIP.
- Im buying a “flip” property with a value increase of 20% in the past 90 days. Can I use FHA financing?
FHA requires the seller of the property to have been on title for at least 90 days prior to the consummation of the purchase agreement.
- Can you help with relocation? We can provide a new home loan in many states you would choose. Once you find the home where you want to relocate we recommend you connect with a local realtor who can show you around.