Why aren’t more peole with variable loans just refinancing with an FHA loan?

The refi guidlines show up to 95% LTV so anyone who is not upside down on thier loan and who has made payments ontime for 12 months can refi into this. It seems to me that a lot of the issues with the subprime loan mess has been buyers who are unable to afford thier loans once the variable rate kicks in, well unless their home has dropped below the value of the loan (of if they have been missing payments already) why not just refi with an FHA?
Its definitley not an add as I sure have nothing to offer. I am seriously wondering. I was also unaware that only specific brokers were able to do FHA loans, which is fascinating.

Where can I find information about the income to loan requirmeent? For instnace, how much income would be required to borrow 0k on a 0k home?

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    One Response to “Why aren’t more peole with variable loans just refinancing with an FHA loan?”

    1. financing_loans says:

      Okay is this an ad?

      Anyway if this is a legit question I will answer it. The reason being is because many cant qualify FHA, loan limits ect. Now FHA has came out with FHA secure that allows borrowers that are on an ARM to refinace to a fixed FHA assuming they can qualify for the payment, credit really isnt an issue. But many have lost their jobs.

      As to your point why arent people doing it? I have no clue, maybe people could qualify for this. But you have to remember maybe 10-15% of the brokers are FHA approved. Borrowers dont know, because the broker they are using cant do FHA. Thats why its always vital to check with more then one lender when a borrower is looking for a loan.

      Its vital for a borrower to look around. But I agree, I reckon its mostly because many lenders brokers despise FHA loans but they are pretty excellent. They dont work with all borrowers. I did a loan last week that was denied by 4 lenders, because they were not FHA approved. It was less then a week from default. Took 2 days to close it FHA. I get what you are saying.

      If this is a public service announcement I agree with you, check other lenders. They went from a 13 adj to a 6% fixed. No credit requirements. The other 4 wasnt FHA approved. So they didnt have that option.

      Look around if you need to refinance. But I agree I wonder that question all the time. Most dont have negative equity, but they go back to the same lender that screwed them in the first place.

      ******** UPDATE **********

      Sorry for everybody else this is getting long. That is a pretty high FHA loan. Every single county in every single state has a different FHA loan limit. I will give you an example. I live in Utah. FHA loan limits have increased. So if you live in Salt Lake County you can get a FHA loan up to $729,750, but if you go to the next county, might be the same neighborhood but you live in another county. The neighbors across the street if you will. You go to Utah county or provo, across the street, the maximum FHA loan is $323,750. Across the street, 400K difference in a loan FHA will do.

      FHA has to base loans on medium income and housing in the entire county. So literally you can do a FHA loan for 700K across the street for 400K and the person with a 500K home cant. Thats why lenders despise it. You can look up this site to see what your county is approved for.

      https://entp.hud.gov/idapp/html/hicostlook.cfm

      Look up your state and county, 600K is very high, another reason I mentioned you might be over the loan limit. There are no acceptions to this rule. If it says your county is 300K, thats all you can get.

      As to why all lenders are not FHA approved. They have to agree to be audited to the hilt. They have to show everything, plus they have to have cash assets. Only about 10-15% of brokers can meet the requirements. Banks are exempt, but bank loan officers are idiots. Find a excellent broker that is FHA approved, that says alot.

      Here is the FHA secure information.

      http://www.fhasecure.gov/

      Didnt mean to offend you when I mentioned is this an Ad? I figured you were a loan officer trying to get business, but Im pleased to answer your questions.

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