"Matching you with the best in the industry"

• Mortgage payment too high?
• Fear of foreclosure?
• Victim of bad lending practices?
• Behind on mortgage payments?
• Has your rate adjusted or will it adjust soon?
• Do you owe more than your home is worth?

FAQ's - Refinance

• Who is FHA and what do they do?
• Who can refinance under FHA?
• What kinds of Refinance Loans are available?
• How much of my homes value can I refinance?
• What are the main benefits of an FHA refinancing?

Q. Who is FHA and what do they do?
Federal Housing Administration
The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. FHA is currently the only group with lenient requirements compared to the strict requirements of today for a conventional refinance. Refinancing under FHA has allowed borrowers that were pushed away a second chance, and if FHA isn’t able to work with you there is Loan Modification (see main FAQ for more detail on this).

Q. Who can refinance under FHA?
Homeowners with or without FHA home loan may use the FHA Refinance Loan, the Cash-out FHA refinance loan, or the FHA streamline refinance program to consolidate their bills or take cash out of their property or just lower their interest rate and payments.

Q. What kinds of Refinance Loans are available?
Cash-out FHA refinance:
A cash-out FHA refinance loan is when a borrower refinances their current mortgage for more than they owe in order to pull out the built up equity that has accrued in the home. The amount a home owner can borrower is limited by the value of the property compared to the loan amount (otherwise known as the loan-to-value or LTV).

FHA Refinancing Loan:
FHA Refinance loans are used to refinance any non FHA loan to an FHA loan. If a borrower has conventional mortgage they may be able to use the FHA refinance loan to refinance up to a LTV of 97% provide that they are not getting any money at closing or paying off anything other the existing mortgage.

FHA Streamline Refinance Loans:
A FHA streamlined refinance loan refers only to the amount of documentation and underwriting that is conducted on a loan file by the mortgage company. Mortgage companies may offer streamlines "no cost" (actually no out-of-pocket expenses to the borrower) by charging a higher interest rate on the new loan. Other companies may offer a streamline refinance that wrap the costs into the new mortgage amount. Unfortunately, there must be sufficient equity in the property. Before deciding which option best fits your needs, it is important to weigh not only the costs but also the long term impact that a higher rate or a higher mortgage payment will have.

Q. How much of my homes value can I refinance?
You can refinance up to 97% of your home value.
FHA even offers up to 95% cash-out, the highest amount of any our home loans.

Q. What are the main benefits of an FHA refinancing?

• Consolidate debt (high interest loans/credit cards)
• FHA is available as both a 15- and 30-year fixed-rate loan.
• No prepayment penalty (a big plus for subprime borrowers)
• You can have a lower credit score or lower household income
• FHA has new higher loan limits for every county
• Cash-out option
• Lower your rate
• Stop Foreclosure