Subprime woes and ARM resets have many homeowners searching for a solution to help pay their monthly mortgage bills. Look no further - a FHA Refinance is the most popular option on the market today.
With the FHA, you can:
Some of the benefits you will enjoy include a low down payment, relaxed qualification standards, and you may qualify for a lower rate. We do not even need your social security number to get the process started so contact one of our qualified FHA Loan Specialists who will answer all your questions and walk you through refinancing your home with a FHA Loan step-by-step.
To best find out how you can take advantage of the benefits of a FHA Refinance, connect with a specialist online. They can provide a one-on-one solution to best fit your needs.
The FHA guarantees your loan through approved FHA lenders, which not only makes it easier to qualify for a home loan, it can also save you money each month. A guaranteed loan is a win-win situation for both parties, and it can lead to a lower interest rate for the borrow and less risk for the lender. The best way to start the FHA Loan process is by answering a few simple questions so we can connect you with an FHA Specialist today!
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.