FHA Refinance Programs

FHA Refinance:

FHA Refinance loans offer a few different options for refinancing your loan. FHA refinances can be done as a “streamline” to simply reduce your interest rate or loan term. FHA refinances can also be done as “cash out” to use the equity in your home to pay off other debts or pull cash out. Generally speaking both transactions can be done with very little effort and minimal documentation required. For complete details on the FHA streamline refinance program or FHA cash out loan see below.

Need information on rates? Visit FHA Rates.

FHA Refinance with Cash Out

FHA refinance with cash out, sometimes called an FHA cash out refinance, is used to take cash out of the home’s equity. This type of transaction pays off your existing first mortgage loan or loans on the property and any other debts that the homeowner wishes to pay off.  If there is any remaining equity it can be received as cash back at closing for other needs. The cash can be used for any purpose. The borrower needs to qualify for this loan much like when they purchased the home. This type of FHA refinance does require an appraisal all other loan qualifications.

Benefits of a Cash out Refinance

  • Refinance up to 80% of your current home’s value
  • Consolidate and pay off other high interest debts
  • Complete home improvements
  • Put money in the bank for a emergency reserve fund
  • No out of pocket closing costs
  • Cut mortgage term to 15 years and afford it with no other debt to have to pay.
FHA Cash Out Guidelines:
Credit Score 620
Loan to Value 80%
Credit History No 30 day lates in past 12
Income Verified
Debt to Income Ratio As determined by automated

FHA Streamline Refinance

FHA Streamline refinance, also known as an interest rate reduction loan, are used to lower the monthly interest due on FHA mortgages. In today’s historically low interest rate environment, almost all veterans who have a FHA loan are benefiting from this type of FHA refinance. In 2015 thousands of homeowners just like you saved hundreds of dollars each month.  Some of our clients refinance to a lower term, pay their home off faster while paying the same amount monthly while others reduce their monthly expenses!!! The process is quick and easy with very little documentation required.

Benefits of a Streamline Refinance

  • Typically, no out of pocket costs. If lowest rate selected, costs due at closing can be advanced from current escrow account.
  • No income verification
  • Lower interest rate
  • Accelerate loan payoff by going to a lower term
  • Defer 2 mortgage payments
  • Get up to 5% of home value up to a limit (see Energy Efficient Mortgage improvements for max).
  • No appraisal necessary*
FHA Loan
Max Loan Amount: varies by county
Credit Score: Not Required
Down Payment: 3.5%- 10% by credit score
Interest Rate: Current market
Assumability: Yes
Mortgage Insurance: Yes

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*Limited time OAC