FHA Refinance for your Home Loan
The Federal Housing Administration has existed for decades with the purpose of helping Americans to purchase homes and making sure that they are able to stay in them. The FHA refinance options available to you today may very well mean that the time is right to modify your loan and take advantage of one of any number of FHA refinance options that could save you thousands of dollars over the course of your loan.
Holders of conventional mortgages may be able to shift their mortgages over to FHA insured mortgages and receive a number of benefits as a result of an FHA refinance. In order to qualify prospective borrowers looking for an FHA refinance must be able meet the following eligibility criteria:
- The existing mortgage must have been taken out before January 1, 2008;
- The existing amount of mortgage debt-to-income ratio may not exceed a certain percentage depending on how much of the cost of the home has been financed;
- The borrower looking for the FHA refinance must not be able to afford their current loan;
- The borrower looking for the FHA refinance must not have intentionally missed a mortgage payment; and
- The property to be given an FHA refinance must be an owner occupied home and may not be a second home or an investment properties.
Those borrowers who meet these qualifications and are able to receive an FHA refinance will be able to take advantage of a broad range of benefits. The benefits of FHA refinances for insured loans under the new program include:
- The option for a 30-40 year fixed rate mortgage;
- An absolute maximum of a 96.5 percent loan-to-value ratio, which ensures you are not paying more than your property is worth;
- Under an FHA refinance there are no prepayment penalties;
- A mortgage qualifying for an FHA refinance will receive a new $550,440 maximum mortgage amount;
- Qualification for an FHA Refinance Extinguishes all subordinate liens on the property; and
- You will also receive a new home appraisal from an FHA-approved appraiser.
The advantages of FHA refinances should be readily apparent to any mortgage holder who has had difficulty making payments in the past, or is worried about a looming jump in interest rate. You may be confused, or not be certain what course of action is best for you, but if you are considering an FHA refinance, I am here to tell you that help is waiting for you.
Contact us at Nick@nwmortgageexperts.com or call at 206-303-8526 and our professional loan officers will explain to you exactly what an FHA refinance can do for you, and how you can best take advantage of it. The longer you wait to initiate your FHA refinance the more money you wasting that you do not need to. So call today and let us help you seize the once in a lifetime opportunity that is putting your dreams in reach.
