| Just as a regular FHA loan is easy to get, an FHA | | | | foreclosure would qualify as long as it is reported at |
| home loan refinance is also an easy process. For | | | | least three years old or more. An FHA home loan |
| homeowners that have an existing FHA loan, the | | | | refinance can make life much easier with those that |
| option to refinance is available. The truth is that | | | | have little to no credit or those that are looking to |
| refinancing an FHA loan offers the homeowner with | | | | improve the appearance of their credit after a |
| many great benefits. | | | | bankruptcy or foreclosure. |
| For one thing, the homeowner could choose an FHA | | | | One of the most popular types of FHA home loan |
| home loan refinance as a means of cashing out as | | | | refinance is known as the streamline loan. With this, the |
| much as 85% of the property's value. In this case, the | | | | borrower has a no cost interest rate reduction, no |
| homeowner would have the opportunity to consolidate | | | | qualification required for credit, zero cost options for |
| bills, as well as a first and second mortgage. | | | | refinancing, better credit qualification, and the person |
| Additionally, monthly payments are more affordable | | | | could switch to a shorter or longer loan term or go to |
| and the person now has a single loan to manage. If | | | | an FRM from an ARM with no hassle. |
| you elect to consolidate other loans when you | | | | To qualify for a streamlined refinance, the loan must |
| refinance, your monthly payment may end up higher, | | | | be in good standing and by refinancing your monthly |
| but you are paying off more than one debt at a time in | | | | interest payments should become lower as well. The |
| this capacity. This option is also helpful for making it | | | | goal of this FHA home loan refinance is to reduce your |
| easier to qualify for credit because it doesn't appear | | | | monthly expenses by lowering your monthly payment. |
| that you have a high debt to income ratio and typically, | | | | However, this refinance option does not allow you to |
| closing costs are low since they are regulated by the | | | | receive cash back. This is a good choice for people |
| government. | | | | that have good credit and do not have any significant |
| Another top option associated with an FHA home loan | | | | additional debt. By selecting this option, the homeowner |
| refinance is taking up to 96.5% of the home's value. In | | | | is able to save a little extra money each month. |
| this case, the person would have the opportunity to | | | | Regardless of your reason for an FHA home loan |
| consolidate a first and second mortgage but for this | | | | refinance, you will find that there are various options |
| type of refinance loan, the person would not need any | | | | available to you. By refinancing your home, you may |
| credit or would need a score at least 620. For this | | | | be able to consolidate debt and pay it off more quickly, |
| option pertaining to an FHA home loan refinance, if the | | | | or you may save yourself extra cash each month that |
| person had a bankruptcy, he or she would qualify as | | | | you can put to use elsewhere. |
| long as it was two years old. Even someone with a | | | | |