FHA Loan Makes Home Loan Refinance Easy
If the Federal Housing Administration (FHA) is the current insurer of your mortgage then consider yourself fortunate. You may be able to qualify to take advantage of the FHA streamline refinance program which often results in lower interest rates especially as rates are declining as they have been in recent months. The FHA has come out with a customized program that can assist you in the refinancing of your FHA loan. The process of obtaining this FHA mortgage refinance loan is comparatively easy for those who quality or who are currently financed by the FHA.
If you want to take advantage of the FHA refinance loan you should learn more about how it works. To Learn More about Qualifying for an FHA Loan
Important Features of a FHA Loan
Some of the features of FHA refinance loans than make it very popular include:
- With an FHA loan there are often lower the closing costs compared with a conventional mortgage
- An FHA loan refinance generally has a lower rate of interest compared to conventional loans which can significantly reduce the total loan cost.
- An FHA loan, if it replaces an ARM or high interest loan, can provide the lower costs needed to rescue the borrower from a potential foreclosure of the residence.
- An FHA refinance loan is insured by the federal government.
- Usually a 3% down payment is required for an FHA loan. This makes it easier for the first time home buyer who has limited cash resources.
How the “Streamline Process” of an FHA Refinance Loan Works
The documentation and process of taking advantage of the FHA refinance program are straightforward and less cumbersome than other types of mortgage refinancing. It’s even possible, in some limited circumstances, that an appraisal may not be required for a FHA home loan refinance. This can be a big benefit in terms of costs and also with the uncertainty of today’s home values. Lower FHA refinance rates can reduce the amount of the monthly payment compared to higher interest loans. Act today and take advantage of an Affordable FHA Loan.
Do I Qualify For FHA Mortgage Loan?
The rules for qualifying for FHA home refinance are as follows
- A conventional mortgage loan cannot be refinanced into a FHA refinance home loan. The first loan must be a FHA loan.
- The debtor should be current in payments on their existing loan….not in arrears on payments.
- The new loan should reduce the monthly payment and the interest
- The FHA loan mortgage refinance cannot be used as cash out refinancing especially when the streamline process is used.