Helping you with
FHA refinance
Know more why FHA refinance can be the best option for you. Let our mortgage experts help you with this type of refinance.
Helping you with
Quick Mortgage Quote
What is your mortgage goal?
REFINANCE PURCHASE
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SINGLE FAMILY CONDO / TOWNHOME MULTI-UNIT MOBILEHow will your property be used
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Can you make a down payment of at least 5%?
YES NOAre you currently working with a real estate agent?
YES NOHow would you rate your credit?
EXCELLENT VERY GOOD GOOD FAIR POORIs your mortgage currently FHA-insured?
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FHA Refinance
A preferred method among many American would-be homeowners; that’s what the Federal Housing Administration (FHA) home loan is. An FHA loan has relatively easy qualification requirements, and it’s also affordable for a lot of families. It’s what makes it so attractive to a lot of borrowers who need low down payments, and a credit score that’s not so pretty. Low to middle-income families can benefit so much from this type of home loan. An FHA loan is also one of the easiest mortgages refinance. It’s one of the best methods to start saving.
Advantages of FHA Refinance
Aside from being able to lower your mortgage rate (and monthly payments) which is undoubtedly the biggest advantage of FHA refinancing, there are lots of benefits why you can opt for FHA.
Here are some more:
- The streamlined option features fast processing and few steps to closing.
- The cash-out option makes it easier to get emergency money without getting into high-interest debts like a credit card.
- No income or employment verification
- No appraisal needed
- No penalty when you prepay the original FHA mortgage
- Make a large purchase: some things like cars require more money than you can save from just your salary.
Is an FHA refinance right for you?
Contact us Today
Let our mortgage expert help you determine whether it is the right time to consider an FHA refinance and help you get the best option.
When Is The Right Time for an FHA Refinance?
Under some certain conditions, the costs of a refinance might outweigh the benefits. But if you get your timing right you enjoy more benefits. So when should you consider an FHA refinance?
When Interest
Rates Fall
If this will happen, you can have a significantly lower rate than your current one.
When interest rates are
expected to rise
If you currently have an FHA adjustable-rate mortgage (ARM) and anticipate that interest rates will increase
When your income
increases
You can opt for higher monthly payment. It will also help you shorten the term of the loan.
When you need
cash urgently
With the FHA cash-out refinance option, you can tap into your home’s equity.
When should you apply for an FHA Refinance?
Beneath a few conditions, the cost of refinancing may overshadow the benefits. It’s all about applying for an FHA refinance at the right time. So, when you should start considering FHA refinance?
When Interest
Rates Fall
With an FHA loan, you can receive a lower interest rate than the one you have currently.
When interest rates are
expected to rise
If you have an FHA adjustable-rate mortgage (ARM) at this very moment, you can apply for an FHA loan.
When your income
increases
You can opt for higher monthly payment. This helps your loan term shorten significantly.
When you need
cash urgently
An FHA cash-out refinance option give you the option to touch your home’s equity.
Are you qualified for a refinance with the FHA?
It’s true that an FHA refinance is much simpler compare to most refinance options, but qualifying for it still needs an application process and particular requirements. You may even be eligible whether your current mortgage is FHA-insured or not.
If your current mortgage is an FHA-insured loan, you must:
FHA-Insured
- Own and live within the property as your primary residence in at least 6 months.
- Update your mortgage payments.
- Not have less than one late payment in the last twelve months.
- Be capable of paying all upfront costs out of your own pocket; not through the new loan.
- Have a debt-to-income ratio of 41% after the FHA refinance.
If your existing mortgage is not
FHA-insured you should:
Not FHA-Insured
- Not be treating the current property as your primary residence.
- Have your payments updated for the current non-FHA mortgage.
- Have 500 as your minimum credit score.
- Possess an LTV of 85% if applying for an FHA cash-out refinance. Other lenders can allow up to 95% LTV if your credit score is a 680 or more.
- Keep your debt-to-income ratio to at least 43% after the refinancing.
- Be capable of completing a three-month trial if the current mortgage is struggling.
Are you eligible for an FHA refinance?
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Contact us today, and we can figure that out together. Our mortgage experts are happy to aid you in finding the best FHA refinance deals you can benefit the most from.
