What Is FHA Refinance?
he Federal Housing Administration or FHA Refinance Loan program offers qualified borrowers lower mortgage payments through recourse to federal funds. To be eligible for a federal home refinance mortgage loan, borrowers need to own one or more properties. If a borrower owns at least two properties, he can also qualify for the FHA Loan. The FHA, underwriters, underwriters and brokers screen borrowers to assure that the borrowers will repay the mortgage loan as agreed.
The second refinance fha program is the FHA Money-Out Refinance program. With this form of refinancing, a borrower refinances a mortgage loan that already carries a higher balance than is owed on the house with the primary purpose of giving the borrower extra funds. This is often done to pay down a home equity or as a result of a foreclosure. The only eligibility requirement for this type of mortgage program is that the borrower must be a U.S. citizen or a qualified non-immigrant alien who is a permanent resident.
Another alternative offered by the FHA is its Netural Benefit Loan. This type of refinance allows homeowners to convert the principal balance of their loans into cash. This can be achieved by paying off the current mortgage or by taking out another loan that pays off the balance of the mortgage. Both options can save money for the borrower. The Netural Benefit option, however, does not reduce the mortgage amount since it only converts the mortgage amount into cash.
These are three of the many FHA mortgage refinancing options available to borrowers today. While it is easy to find information on all of them, determining the best one depends on several factors such as your own unique situation and needs. For example, the amount of the debt and the interest rates you currently pay will play an important role in determining which one best suits your needs. Borrowers who owe a higher percentage of their homes to debt also have an advantage. Borrowers who have experienced a bankruptcy are also likely to receive lower interest rates than other applicants since they have been proven to be less risky borrowers.
If your debt is too extensive to handle on your own, you may want to consider getting additional help from a third party. One option is to get a Government Money Loan, which can either be provided by the federal government or a lender backed by the federal government. Another option is to use a Cash For Closings Loan. Cash for closings loan works more like a refinancing but with one main difference: the money borrowed is used to pay off the existing loan. You can use your cash for another loan instead of paying off the FHA. In this case, the borrowers do not have to take out another FHA loan but can also obtain financing from their own sources.
The Federal Housing Administration Refinance Program streamlines the FHA process. However, there are still eligibility requirements. To qualify for a refinance, borrowers need to be at least 62 years old and have a substantial income. Borrowers who get an FHA loan may also be eligible to reduce their existing debt through debt counseling or debt settlement. FHA borrowers are also required to complete an FHA credit counseling that helps them plan for future financial security. If you think an FHA loan would benefit you or your family, begin your application process today.