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FHA Refinance Loans Requirement

Some of the distinct advantages of FHA Refinance Loans over other loan types are:

Credit Flexibility
FHA refinance loan requirements are not really credit score driven, although it is helpful to have at least a 580 FICO score to obtain a quicker approval. Fantastic Rates and Low Monthly Mortgage Insurance
A distinct advantage of an FHA refinance loan, as compared to a conforming loan, is fantastic interest rates and lower monthly mortgage insurance (MI). Depending on the program, standard FHA refinance loan interest rates are usually better than a conforming 30-Year Fixed loan.

Smaller Home Equity Requirements
FHA Refinance Loan requirements have as low as a 3% home equity requirement for refinance (5% for an FHA cash out refinance). Other refinance loan programs don’t allow this.

Streamlined Refinance and Assumable Loans
One of the most vital advantages of an FHA refinance is the ability for the loan to be assumed. FHA loans are eligible for streamlined refinance, a program HUD offers that allows the borrower to easily refinance the loan to reduce their interest rate and lower their monthly payment.

What factors determine if I am eligible for an FHA Refinance Loan?

To choose if you qualify for an FHA refinance home loan, we will look at:

Standard debt-to-income ratios are 31/43 for FHA refinance loans. Your credit history (this is vital, but FHA’s credit standards are flexible). To be eligible for FHA refinance loans, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your yucky monthly income (31% ratio). Additionally, to be eligible for an FHA refinance loan, you must:

Have a valid Social Security Number (SSN)

FHA Refinance Mortgage requirements do not require U.S. citizenship for eligibility. Must I re-qualify to refinance with an FHA Loan?

If you’re thinking about refinancing, you’ve already been through the mortgage qualification process when you qualified for a conventional, sub prime mortgage or FHA mortgage.  - If you already have an FHA loan and just want to lower your interest rate, you can use the FHA Streamline Refinance Program. With a FHA Streamline Refinance you don’t have to worry about documenting your income and employment. You will only need a valid social security number.

. -  If you’re refinancing a sub prime, conventional or any other non-FHA mortgage, or if you’re seeking to refinance other debts besides your current mortgage into the new loan, or if you’re looking to take cash out, you do have to credit-qualify. Can I get an FHA refinance loan after bankruptcy?

If you have been discharged from a Chapter 7 bankruptcy for two years or more, you are eligible to apply for an FHA refinance loan.

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  1. FHA Refinance Loans Requirement | FHA Loan Rates says:
    January 9, 2009 at 9:01 am

    [...] Go to the author’s original blog: FHA Refinance Loans Requirement | FHA Loan Rates [...]

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