What is an FHA refinance loan?
An FHA refinance loan is a no-brainer for many homeowners looking to refinance. Insured by the Federal Housing Authority (FHA), an FHA loan can be one of the easier loans to qualify for. So whether you’re looking to cash out on your home’s equity or lower your interest rate, an FHA refinance’s minimal eligibility requirements may help you hit your goal.
Is an FHA refinance right for me?
Many homeowners have refinanced with an FHA loan, and for good reason. An FHA refinance may be the perfect fit if:
- Home equity/down payment as low as 3.5%
- Your credit needs some improvement
- You don’t have enough equity in your home for a conventional loan
- You want to lower your current interest rate
How’s an FHA refinance different from other refinance options?
Let’s talk basics. Here are some of the unique things about an FHA refinance loan:
- Debt-to-income ratio extends above conventional limits
- Loan limits up to $729,750 (these can vary by state and county)
- Guidelines that allow less-than-perfect credit
What is an FHA streamline refinance?
Say you have an existing FHA loan. If you refinance it with another FHA loan, you can enjoy the awesome benefits of an FHA streamline refinance. They include:
- Waiving your home appraisal
- Waiving typical loan documentation, like income and employment verification
Think you and an FHA refinance loan are meant to be? A ditech Home Loan Specialist can help point you in the right direction.
Not sure if an FHA refinance is right for you?
No worries. There are plenty of other refinance options out there. Here are you few you might like: