Can you enhance your money situation by remortgaging with an FHA insured loan? Can you get a home loan re-mortgage?
As you read every information of this article you begin to see that there is a way out of the stress for you.
You probably already know that FHA mortgages are not for the high and perfect-credit-score people. Maybe already that FHA has different rules than the edges, more relaxed rules. But there’s much more to know.
edges don’t have to do any FHA home loans and they do not have to give you one already if you meet all FHA criteria. That said, a lot of edges give mortgages and re-mortgages all the time. The loans are insured!
Here is how it works: You, the borrower, pay 2.25% upfront mortgage insurance and a small monthly insurance payments (0.50% to 0.55% a year or around $40 per month for every $100,000 your borrow). You can borrow up to 97% of the value of your home if your credit score is 580 or higher. If it’s 579 or less, you can borrow only up to 90%.
FHA insures only dominant homes, the house you live in, never an investment character. The dominant home can be a condo, a house, a townhouse, a building with up to 4 apartments. There is a limit to the loan amount, though. In some counties the limit is higher than in others. Visit https://entp.hud.gov/idapp/html/hicostlook.cfm to find out the limits for your county.
So, remortgaging with an FHA home loan costs more than regular remortgaging but it allows people who do not qualify for a regular remortgage to get a home loan.
Once you’re done remortgaging, if you did get an FHA-insured mortgage or remortgage, there’s another assistance: the FHA Streamline Program.
FHA’s Streamline Program is a newer program that applies only to people who already have an FHA-insured mortgage. Remortgaging or refinancing under this program is done without a new appraisal, or verification of income or of credit. To qualify for this program you have to have paid on time for the 12 months prior to applying.
It seems that FHA has learned that if you’ve qualified once for an FHA-insured mortgage loan and have been making payments on time, you’re a good risk nevertheless. And since you’re a good risk, they don’t have to strain your nerves or their resources.