Refinance Options With A FHA Mortgage Loan
Congress’s recent lift in FHA home mortgage loans has everyone talking. Now with an average ceiling cap at $729,750 in California and over 660 markets country wide, current home owners are turning their attention to FHA mortgage refinance programs and interested if they are able to lower their home mortgage rates by refinancing with an FHA loan program.
In the past, FHA mortgages were often perceived as a 1st home buyer’s program that offered positive tools for the borrowers who could not qualify for other conventional loans. However as the interest rates have dropped to the attractive lowest and best mortgage rates available in years, combined with ceiling raised for FHA mortgage home loans, FHA mortgage refinances are a great option for homeowners to considered, regardless if one’s current home loan is an FHA mortgage or not.
Choosing to consider refinance with an FHA home loan provides numerous positives to review. These items can include such benefits as low equity and credit requirements, low rate mortgages for refi interest rates, cash-out refinancing for home owners with adequate home equity, home loans for home improvements and repairs against the estimated value of the improved property, and more such as combining your primary and secondary mortgage home loan into a single FHA loan, as well as FHA refinance options for home owners currently under water in their home mortgage. The interesting part of it all is once you are approved for an FHA mortgage loan or FHA mortgage refinance.
FHA MORTGAGE REFINANCE | Available in the California areas of Orange County, Los Angeles, Ventura, and more…
In combination to the new ceiling cap for FHA mortgage loans and the low interest rates available now in the today’s market, receiving a standard FHA mortgage refinance is actually quit attainable. Even if you have very little of equity built up within your home’s loan-to-value ratio, FHA refi’s are able to be as high as 97.75 percent.
CASH-OUT REFI | Have equity built? FHA cash-out refinance…
Another option for home owners today is a Cash-Out FHA Refi. This loan is possible as long as you will still have at least 15 percent of equity remaining within the property’s value. If this is the option you are seeking, estimate out the numbers to ensure you will have an 85 percent loan-to-value ratio and review the details with your lender.
IMPROVE HOME VALUE | Home improvements help for future value…
Make your home improvements based on the estimated new worth of what your home would be post the improvements, and increase the value of your home! For repairs and other home improvements, the FHA’s 203(k) program provides borrowers to receive up to $35,000 as a part of their refinance amount. This FHA loan program is a good option for home owners currently with little or limited equity. Since the improvements help to increase the value of your home, ultimately, it provides you the ability to borrow the funds that may or may not have been there prior to the improvements being performed.
FHA VS CONVENTIONAL REFI’S | Grab the lowest mortgage rates for refinancing today…
A large difference between qualifying for a FHA refinance vs. a conventional one is the credit requirements. For FHA mortgage refinance programs, borrowers may have a credit score as low as 500 and still be able to qualify (pending the lender). In addition, FHA interest rates are also competitive with those against conventional loans, offering the same, if not lower.
UNDERWATER LOANS | Refinance your underwater loan and get ahead…
For borrowers with negative equity and who owe more on a non-FHA mortgage home loan than what their home is worth, can apply for a FHA short refinance! Within this type of FHA mortgage refinance, lenders are given incentives to provide write off’s for at least 10 percent of principle home loans who are in an ‘underwater’ mortgage loan. The incentive is to help encourage refinancing home owners into FHA mortgage home loans. This however may only have a 97.75 percent maximum loan-to-value ration and any and all second mortgages must be re-subordinated into new loans. This program also has other requirements such as: must be up to date on their existing mortgage, in financial difficulty, and in risk of default. High credit scores are not needed and getting approved is a process.
Ultimately, each option can be up the lenders in order to be approved yet each do provide options for all home owners looking to receive a FHA mortgage refinance and worth taking the time to review and discuss with your lender.
