The Fha refinance is a very helpful tool for homeowners who are still underwater with their mortgage loan. There are advantages to both refinancing and FHA Refinancing. Some people say that there are more disadvantages than advantages with FHA refinancing. This may be true for borrowers who have been turned down for a loan through the FHA. However, there are also advantages for borrowers who have been approved but want additional help and hope for better rates in the future.
If you choose Fha refinance, you will get low down payment, which allows more room for you to be able to save more money and pay off your mortgage loan faster. Current Fha refinance Rates: 30 Year Fixed Rate 3.750% Interest only payment; If you need more time to pay off your loan you can opt for the payment plan of your choice which may be extended or your interest rate may be raised depending on how your lender decides. These advantages are enough for borrowers to decide if refinancing is for them.
Borrowers who opt for Fha refinance should also know that these loans are backed by the Federal Housing Administration (FHA) which offers lower down payment requirements than most other lenders. In addition, Fha refinance loans are backed by HUD, which is a government agency that specializes in helping borrowers who are having problems with their mortgages and other related problems. In order to qualify for FHA, borrowers must meet certain income requirements, credit score requirements, and a disabling income requirement of less than half of the monthly gross income of the borrower. FHA also offers assistance for first time home buyers to help them secure financing for their new homes. Some of these programs include providing down payment assistance.
There are various types of FHA loans. Some of the different types are: streamline refinances, foreclosure, FHA insured loans, and rehabilitation. A streamline refinance is a refinance program that involves closing the first mortgage and transferring the existing loan terms to the new FHA loan.
FHA foreclosure refinance is another common type of Fha refinance. With this type of refinance, borrowers who have been late in payments on their primary residence mortgage but can qualify for a regular FHA loan because of an improvement can qualify for a FHA loan. If they have been late on their payments and their house is going through foreclosure, the lender will consider their primary residence as security against the loan. In order to qualify for this refinance, borrowers must have a current FHA loan that is still current on payments. In order to get approval for this type of FHA loan, borrowers must fill out an application, provide employment documents, and pass a credit check.
FHA streamline refinance options are similar to the FHA foreclosure refinance program, but only require credit checks to qualify. As in the case with the FHA loan, if borrowers are approved for this type of refinance, they must also have an FHA insured mortgage payment. However, unlike the FHA foreclosure, no collateral is required. Borrowers who have credit problems may still be able to qualify for this option. This option does not require income or employment verification. The application process is the same as any other type of FHA loan.