FHA loans are an excellent option for borrowers considering refinancing their existing mortgage loan. You may refinance from an existing conventional loan to an FHA loan or refinance and FHA loan through a traditional or “streamlined” refinancing process.
FHA Streamline Refinance
Streamline refinances are designed to lower are designed to reduce the borrower’s principal and interest payments on an existing FHA-insured mortgage without providing any cash back to the borrower outside of modest adjustments not to exceed $500. Depending on credit history and loan-to-value ratios, a new appraisal may or may not be required. Often Streamlines can be completed with no credit check, no appraisal, no underwriting, no income verification, and no qualifying debt ratios.
Streamline refinances are an excellent way for borrowers to take advantage of a lower rate environment without experiencing the significant closing costs often associated with a traditional refinance and without the traditional qualifying criteria.
Traditional No Cash-Out FHA Refinance
Conventional to FHA Refinance
FHA Secure Refinance
FHA Cash-Out Refinance
Borrowers looking to tap into the established equity in their home for home improvements, debt consolidation or other purposes may want to consider a cash-out refinance. A qualified borrower should have extensive equity in their home as Texas limits the amount you can leverage your home to 80% of its current market value. As a result, a typical borrower who invested the minimum required down payment on an FHA loan at the time of purchase should have at least several years of equity invested in their home before pursuing a cash-out refinance. Alternatively, if there has been significant price appreciation on your home, this time frame may be shorter.
