Refinance your home with an FHA loan.

FHA Refinance Loans

Homeowners benefit from making payments on their mortgage year after year.  At some point it often becomes advantageous to make use of the equity that has built up in the property. 

Not only does the Federal Housing Administration insure mortgage loans for home purchases.  They also insure mortgage refinance loans.  They offer several programs for refinancing your mortgage.  Your existing mortgage loan does not even have to be an FHA-insured mortgage .

With an FHA refinance loan you can:

  • Refinance to lower your interest rate
  • Refinance to lower your monthly payment
  • Refinance to avoid foreclosure
  • Refinance to take cash out of your home’s equity to fund home improvements

The time may be right to consider refinancing your existing loan with an FHA-insured refinance loan. The Department of Housing and Urban Development (HUD) offers several options for refinancing your mortgage loan. 

Streamline FHA Refinance Loans

For those homeowners who currently have an FHA-insured mortgage, the Streamline FHA refinance is an option.  There are two basic types of streamline refinance programs available – one that requires an appraisal and another that does not.  In order to qualify for a streamline refinance loan, your existing FHA mortgage must be in good standing and the new new mortgage must lower the principle and interest required each monthly (i.e. it must lower your monthly payment.) 

These streamlined refinance loans get their name because they require minimal documentation and underwriting on the part of the lender. An appraisal is only required if you are roll your closing costs back into the loan.  However, the streamlined refinance option does not offer a way to get cash out of the equity you have accrued.

FHA Cash-Out Refinance Loans

The Federal Housing Administration offers a cash-out refinance mortgage as an option to existing FHA mortgage holders.  This type of refinance loan allows the borrower to tap into their home’s equity and borrow more than they own on their existing mortgage.   They walk away from closing with cash in hand.  Thus the name ”cash-out refinance”. 

The FHA cash-out refinance program allows the borrower to take out equity as long as the new loan amount does not exceed 85 percent of the value of the home.  It is available only to those borrowers who have held their current FHA mortgage for at least a year.  The existing mortgage being refinanced must be for their primary residence.

Compare FHA Refinance Offers

As always it is prudent to compare offers from multiple FHA-approved lenders before signing on the dotted line.  A great way to do this is to request a loan from a free online service that can refer your request to multiple lenders.