Subprime woes and ARM resets have many homeowners searcing for a solution to help pay their monthly mortgage bills. Look no further - an FHA Refinance is the most popular option on the market today. With the FHA, you can:
Refinance Your Mortgage into a More Reasonable Monthly Payment
Refinance Your Current Loan to help Avoid Foreclosure.
Take Cash Out of Your Home's Equity for Home Improvements
Some of the benefits you will enjoy include a low down payment, relazed qualification standars, and you may qualify for a lower rate. We do not even need your social security number to get the process started.
To best find out how you can take advantage of the benefits of a FHA refinance, connect with a specialists online. They can provide a one-on-one solution to best fit your needs.
It is easier to qualify for a FHA refinancing loan than it is for a traditional loan from your average lender. Since the FHA does not directly loan you the money, you have to qualify with a lender that funds FHA loans. The best way to start the process, is answer few questions so we can connect you with a FHA lender. It is easier to qualify because the FHA guarantees your loan, which means that they promise the lender that if you skip a mortgage payment, go into default, or they are forced to foreclose on the property, that the lender will get their money back. The FHA guarantees a percentage of the loan, which they pay directly to the lender in the case of foreclosure.
You do not have to have perfect credit to refinance with a FHA loan. The FHA requires certain standards order to offer you a loan guarantee, but the lender is still guaranteed their money in case of foreclosure, so they are more likely to fund the loan even if the borrower's credit is not ideal. Since each situation is unique, let a FHA specialist prepare a personal analysis for you.
You can have no down payment or a very low down payment, and still get a mortgage loan. Most traditional lenders require a minimum down payment, which preferably is around 20% of the purchase price of the home. FHA loans only require 3%, and this required portion can be a gift to you. Many lenders don't allow gifted funds to be used for down payments on a mortgage loan, but a FHA loan would allow you to do so. This means that you can borrow the down payment from a friend or relative, or use a down payment gift program, like AmeriDream, that will give you the money for a free down payment on your home. If you are refinancing, you would be able to take more cash out from your home, or refinance sooner, even if you have a very small amount of equity built up in your home.
You may get a much lower interest rate on your refinance mortgage. FHA loans can offer much better loan terms than traditional mortgage loans because the loans are guaranteed by the federal government, so there is almost no risk involved. Because of the guarantee, lenders are more secure with the loan, and can offer lower long-term fixed interest rates and fewer points. Because each situation is unique, we do not post rates on this site. To see what rate you can qualify for, connect with a specialist for a personalized analysis.
The FHA will stand by you in case of an emergency. Most lenders help you get your mortgage loan, and then leave you on your own. Your mortgage may even be sold to other companies, and you would never deal with your original lender again. The FHA stays with you for the life of your loan, and they can help you if you get in trouble. If for any reason you get to the point of default or foreclosure on your home, you should contact the FHA immediately. The FHA has programs that can help you retain ownership of your home in times of crisis.
These are just some of the many benefits you would receive if you refinance your home with a FHA loan. Keep in mind that because the FHA does allow you to put such a small percentage down on your mortgage loan or take out a lot of cash when you refinance, you are required to carry mortgage insurance on your home until the equity in your property has built up to 20% or more.
A FHA loan can allow you to include the costs of your home improvements in your loan. HUD's 203 (k) program allows you to purchase, or refinance, a home that needs improvements and include all repair and improvement costs in the loan.
FHA loans can even help you to make your home more energy-efficient. The FHA recognizes that with a more energy-efficient home, the homeowner can afford to pay a higher mortgage; therefore, the FHA can also include these types of repairs in the original loan also.
If you are considering refinancing your home mortgage loan, you will want to research a FHA refinancing loan. You can get help from the Department of Housing and Urban Development.
