FHA Refinance

An FHA mortgage refinance can have many benefits to a homeowner that is looking to reduce their monthly payments. The FHA (Federal Housing Administration) insures loans with the lender so that the lender is not exposed to any risk. This is paid for with upfront mortgage insurance as well as a monthly mortgage insurance that is paid by the borrower. The lenders that we work with will explain to you in more detail about the insurance that is involved with this type of loan. With an FHA mortgage refinance a homeowner can borrow up to 97% of the value of their home for either a refinance or a purchase mortgage loan. This works well for first time home buyers because the credit score requirements are lower than traditional financing. First time home buyers will also be able to obtain a mortgage with as little as 3% down payment.

FHA refinance rates are typically very close to the refinance rates that are available through loans that do not require FHA insurance. FreeHomeRefi.com will connect you with a lender that specializes in providing you with the best FHA refinance rates that are available. There are many different programs available and the lenders that we work with will help you determine what makes the most sense for your situation.

For home owners looking to take cash out of their property, FHA refinance loans are available. When utilizing a cash out FHA refinance the loan to value will be limited to 85%. This means that you can borrower up to 85% of your home's value.

For Example:

The maximum loan amount for this example is $255,000. This would theoretically provide the borrower with $55,000 in cash. The cash out can be used for absolutely anything. This is a great tool for home owners.

FHA Streamline Refinance

One of the benefits of FHA refinance loans is the FHA streamline refinance. This is only available to homeowners that currently have an FHA mortgage loan. With an FHA streamline refinance a homeowner can refinance into a lower rate without needing an appraisal and with much lower standards for qualification. In most cases the homeowner will need to supply very little documentation in order to obtain such an FHA refinance. This makes it very simple for home owners to take advantage of a drop in interest rates.