FHA Refinancing Program Options
The FHA offers two of the best refinance programs that exist. This is especially the case for those who can not qualify for a conventional loan, those who currently have a FHA loan and wish to streamline their refinance, and those who want the maximum LTV (loan-to-value) for a cash out refinance. You can learn about the FHA streamline and FHA cash out programs below, as well as frequently asked questions and answers.
FHA Streamline Refinance Loan
The FHA streamline program may surprise you with the little amount of paperwork and requirements in order to process and fund the loan. It is restricted to homeowners who are currently in an FHA loan. A few of the most exciting aspects of this program are that you do not need to submit a new appraisal, income documentation, or a new credit report. Therefore, you same both time and money on this streamlined refinance.
If you are not currently on an FHA loan and wish to switch to one, you may do so, but you will not qualify for the streamline refinance. This is called an “FHA replacement loan” and it is treated much the same as a FHA cash out refinance loan (even if cash is not being taken out).
Would you like to learn more about the current guidelines for the FHA streamline refinance, and view questions and answers about this program? Visit our overview of the FHA streamline refinance to see if this is the right loan for you.
To apply for a FHA streamline refinance, please request a free consultation.
FHA Cash-Out Refinance Loan
The FHA cash out refinance is the best option for those who wish to take out as much equity as possible from their home. Most conventional loans only allow up to 80% financing on cash out refinances, whereas FHA insured loans will allow up to 85% which can make a major difference for those who need as much cash back at closing as possible.
In order to qualify for a FHA cash out refinance you must be current on your mortgage payments with no late payments in the last 12 months. Additionally, you must meet all standard FHA loan requirements such as credit, income, and debt-to-income ratios. We recommend speaking with one of our expert FHA loan specialists by calling 1-800-731-3560 who will be able to assist you with accurate, up to date information and help you through the application process.
If you would like to learn more about the FHA cash out refinance and calculate how much you may be able to take out, visit this page.
Frequently Asked Questions
Do I have to pay FHA mortgage insurance?
Yes, all FHA loans require you pay two types of FHA mortgage insurance, which includes the UPMIP (upfront mortgage insurance premiums) and MIP (mortgage insurance premiums). You may calculate FHA mortgage insurance costs using this calculator.
Are there any options to refinance an investment property using a FHA loan?
FHA loans are exclusively available for primary residences / owner occupied homes. There isn’t any refinance products available for investment properties.
Can I refinance out of a FHA loan?
If you have built up equity and want to remove your mortgage insurance premiums, you may want to consider refinancing and switching to a conventional home loan. In order to drop your mortgage insurance, you must have at least 20% equity. By having a 80% or lower LTV, lenders do not require you to pay any mortgage insurance, which can save you a lot of money.
Is it possible to refinance from an ARM to fixed rate mortgage?
You may switch from an adjustable rate mortgage (ARM) to a fixed rate mortgage when you refinance. Regardless of the type of loan you have now, you can select new terms on your new FHA loan.
When I refinance my loan, can I switch from a 30 year to 15 year or vice versa?
Yes, it is allowed to change the number of years of your mortgage.
What are the FHA loan limits for a refinance?
The FHA loan limits for a refinance are the same as for a purchase. If you would like to view the FHA loan limits for your location, please visit this page, find your state, and at the bottom of the page are the 2018 limits listed for each county.
What are the closing costs for a FHA refinance?
The closing costs depend on the loan program and the loan amount. We can provide you with a free rate quote and estimated closing costs when you speak to a loan specialist. Compare our offered loan terms to other lenders to see who offers you the best loan. We provide very competitive FHA refinance loans.
I need to refinance fast. How soon could you close my new FHA loan?
We process refinance loans quickly. If you need us to place a urgent status on your loan so that it can close faster, we may be able to offer to prioritize the processing of your loan. Most loans can close in 10 days or less, and many in less than a week.
It is easy to get a quote for your FHA refinance!