FHA Home Refinance Loan
If you are looking to invest in your property and enjoy the benefits year after year, refinancing with an FHA loan will be an investment worth your while. A lender issues a loan insured by the Federal Housing Administration reducing the risk of loss. This program was instated due to a massive amount of foreclosures and defaults in the 1930’s. The FHA home loan program had stimulated the housing market; making sure home ownership is easily achieved.
When refinancing to an FHA loan, there are several things you will need for your application:
- Your last 2 years of residence;
- Employment information in the last two years;
- Income tax returns for the last two years along with W2s, 1099s, etc.;
- Two (2) months of bank statements;
- Full 30 days paycheck stubs.
Having all of these documentation handy will speed up the application process and will help achieve better results at a much faster pace.
If you are looking to refinance your mortgage but have minimal equity, the most appealing option to most borrowers is the rate and term refi. It will lower the current rate you are paying now and result in a lower monthly payment. You can change the terms of your loan without losing your hard earned equity.
FHA refinance allows loan-to-value of up to 97.75%. Compared to conventional loan that only allows a maximum of 95% loan-to-value, FHA is a better option.
When looking to refinance your home, look at all the options available to you. As FHA Loan Specialists, we are able to provide you with options. It is important that you find one that will fit your needs appropriately. By choosing either an FHA Streamline for an existing FHA loan or to go with a regular FHA rate and term option, you will be able to reduce your payment and build equity faster.
When applying, make sure you have all the required documentation handy. This will ensure that your application goes through with flying colors and close in a timely manner. Consult any of our FHA Loan Specialists to refinance your home. We will guide you every step of the way. Call us now for more information.