Homeowners whose current mortgages are FHA-insured have some choices when it comes time for FHA mortgage refinance.
Pittsfield, MA -- (SBWIRE) -- 09/11/2013 -- Real-estate-yogi.com is here to share what it knows about this subject, such as:
- Cash-Out Refinance
- Streamline Refinancing
- Short Refinance
FHA Cash-Out Refinance
The Federal Housing Administration (FHA) offers FHA mortgage refinancing options. One of them is the cash-out refinance. It works like this: A homeowner applies and is approved for cash-out refinancing. This means that the old mortgage is paid off, and a new one for more than what is owed, is drawn up, with the borrower pocketing the difference. Cash-out refinance is based on the equity in and value of one’s home, so it can be as much as $100,000. A person can use the money in any way he sees fit; he should remember that he’ll be paying it back for another 20-30 years, so he should choose carefully what he wishes to spend it on.
FHA Mortgage Refinance With Any Type Of Credit Available At Low Rates!!
FHA mortgage refinancing is only for those borrowers who are using the home as their primary residence, and it’s relatively easy to get a Streamline refinance. There are virtually no credit checks, no employment verifications, and no income confirmations. The ease with which one can be approved for this refinance makes it very popular. FHA Streamline refinances require that one be in good standing on his FHA-insured mortgage, and the refinance must reduce his payment. With this kind of refinance, there is no cash-out option.
FHA Short Refinance
This kind of FHA mortgage refinance is just for folks who have negative equity – that is, their houses are worth less than what they’re paying for them. Short refinance is designed to get these homeowners into more secure, affordable FHA loans. Some of the qualifying requirements for Short refinance are being current on the mortgage payments; the home must be one’s primary residence; and the owner’s total debt cannot be more than 50% of his monthly gross income.
General FHA Refinance Requirements
For any of the FHA mortgage refinancing options, there are general eligibility requirements. One is that a homeowner must have a perfect, recent 3-month payment history. This means no missed or late payments, period. The FHA mandates that borrowers make 6 months’ worth of payments on their FHA-insured mortgage loan, and that no less than 210 days pass from the closest closing date to be eligible for FHA refinance. Also, the FHA forbids increasing the amount of a refinance to cover loan costs.
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