FHA Refinancing

Changes in the housing market have given you-and thousands of other Americans-the option to refinance your current home mortgage with a FHA Refinance.

FHA Refinancing is a better option if you have a fair to good credit rating because, generally, FHA standards are less strict. Even if you likely will not qualify for conventional refinancing because of your income level, a FHA Refinance may still be an option for you.

FHA Refinance Requirements

There are some requirements that may apply when trying to refinance your current loan with the FHA. Keep in mind the following are simply guidelines-each borrower's situation is different.

  • The mortgage that is to be refinanced must ultimately be insured through the FHA.
  • The current mortgage must be current and not delinquent.
  • The results of the refinance must lower the monthly principle and interest payments for the borrower.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.

Other Information on FHA Refinances

fha refinance

One Streamline Refinancing option you have is one that includes the closing costs into the new mortgage amount. This of course is only available if enough equity is in the home after it is appraised. The streamline refinance can occur without an appraisal but the new loan will not be able to exceed the original loan amount. If you are not living in the property (i.e., it is an investment property), the refinance can only occur without an appraisal.

FHA Loans by State

The FHA Home Loan Program

The FHA has been insuring loans since the 1930's, and their refinancing department has been around since the early 1980's. The FHA/HUD also offers the option of FHA Streamline Refinancing . The "streamline" refers to the amount of paperwork and underwriting involved and not to a monetary factor (such as being cheaper or having no cost at all).

Let FHA Mortgage Center.com be your guide to the benefits of a FHA Loan. FHA Mortgage Center.com is your one stop for all your FHA-related questions.

We update our FHA Lending articles and Help Guide frequently with new FHA information. Our FHA Blog is another great source of information from top industry experts with topics ranging from FHA Loan Limits to current changes in the FHA Program. We offer these resources because, most of all, we want to provide you with information to help you decide if a FHA Loan is the right choice for you.