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FHA has several different types of loans available to consumers who are looking to reduce their monthly mortgage payment and lower their interest rate.
FHA Refinancing is really a broad term used for any type of refinancing done using an FHA loan product. Whether you are trying to refinance a high adjustable rate mortgage to a fixed rate, trying to lower monthly payments or to get cash out of your home, FHA offers many refinancing products to help you get the loan you need. Here are some of the benefits of using FHA to refinance your mortgage.
- New higher FHA loan limits give homeowners with more expensive homes a chance to refinance with an FHA guaranteed loan. In a tightening credit market, FHA loan guarantees can mean the difference in getting a loan or not getting a loan for many borrowers.
- Cash Out Refinancing available up to 95% of the value of your home.
- You may qualify even if you have a lower credit score or lower income.
- Interest rates are Low - lenders have less risk because FHA guarantees your loan
This refinancing option is called streamlined because it allows you to refinance your current home loan quickly and easily with less paperwork an often without having to obtain a new appraisal. Lenders like FHA Streamlined Refinance loans because it also cuts down on the amount of paperwork they have to complete. This saves them time and saves you money.
Some of the benefits of this type of loan:
- No Appraisal
- No Credit Restrictions
- No Minimum Income Requirements
- No Income Verification
- No Face-to-Face Applications
- No Heavy Documentation Requirements
This type of FHA Refinance is designed to help existing FHA loan customers reduce their interest without headaches and hassles. The only qualifications for a Streamlined Refinance are; a) your original home loan must be an FHA loan in good standing, b) the refinance must lower your monthly interest payments. This type of mortgage refinance reduces your monthly expenses by lowering your interest payments but there is no option to receive cash back. This type of loan is particularly good for people who are in good financial standing with no significant debt issues. This type of loan will give you the opportunity to lower your monthly payments and interest without a lot of added hassles or unnecessary expenses.
Contact us now to begin your FHA Loan Process!
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