FHA Refi

The Federal Housing Authority's insured loan programs offer many benefits to consumers looking to refinance their homes. Although most people think of first time homebuyers when they hear about FHA loan programs, FHA loans can be a great loan programs for refinancing as well. The next few paragraphs will review many of the ways an FHA refinance can help you.

You can do an FHA Refi with cash-out to consolidate debt, make home improvements, or take out cash for whatever you like up to 95% of the value of your home. Unlike other loan programs, there is no risk based pricing adjustment for taking cash-out to 95% of the value of your home with an FHA Refi.

You can qualify for an FHA Refi even if you are currently paying on a Chapter 13 Bankruptcy. You would simply need the Trustee's permission, a clean 12 month mortgage and bk history, and an acceptable appraisal. Call your mortgage professional to see if you qualify.

FHA loans are great for First Time Home Buyers. While the current "credit crunch" has pushed many would be buyers out of homes, FHA does not have a minimum credit score requirement. Whether your score is a 525 or a 500 you qualify for 97% financing with a 6% sellers concession.

Although there is no specific credit score requirement, an FHA Refi does require a clean 12 month mortgage credit history. Any consumer derogatories need to be properly explained in a letter of explanation.

You can do an FHA refi on up to a 4 unit property with no pricing adjustments. The property must be owner-occupied and FHA Loan Limits apply, although the loan limits increase with each unit in a property. Contact a mortgage professional for FHA loan limits in your area.

Only the best mortgage companies are approved by the government to offer FHA loans to the public. Working with an FHA approved mortgage company is a great way to ensure that your mortgage refinance experience goes smoothly and honestly, even if you aren't refinancing an FHA loan.

» DISCLAIMER: The information contained in this article on 'FHA Refi' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.