FHA Refinancing Program Options
Are you looking to refinance your FHA loan? On this page you may learn more about some of your potential options to refinance an FHA loan. If you would like to speak with an FHA loan representative about refinancing your mortgage, we can help match you with a lender. To have a mortgage lender contact you, request to get matched with a lender.
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).
FHA Cash-Out Refinance Loan
The FHA cash out refinance is the best option for borrowers that want to take some equity out of their home. In order to qualify for a FHA cash out refinance, you must be current on your mortgage payments , and also have no late payments within the last 12 months. Additionally, you must meet all standard FHA loan requirements such as credit, income, and debt-to-income ratios.
If you would like to learn more about the FHA cash out refinance and calculate how much you may be able to take out, please visit this page.
Frequently Asked Questions
Below are some of the most frequently asked questions and answer about FHA refinancing:
Can I refinance out of an FHA loan?
Yes, you have the option to refinance out of your FHA loan. If you have built up enough equity, you may be eligible to refinance into a conventional loan, and not have to pay any mortgage insurance. In order to drop your mortgage insurance, you must have at least 20% equity. By having a 80% or lower LTV, conventional mortgage lenders do not require you to pay any mortgage insurance, which can save you a lot of money.
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 FHA loan 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.
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, and select your state, and then your county, and the FHA loan limits will appear.
How do I find out if I qualify for an FHA refinance?
It is easy to find out if you qualify for an FHA refinance loan. We can help match you with an FHA lender that offers free consultations. To have an FHA lender contact you, request to get matched with a lender.