When considering your options for refinancing your home, there are a few choices available in terms of FHA loan refinancing. Our knowledgeable lenders at Starboard Financial are always available to help you go over the alternatives you have. Before getting started on the process for FHA loan refinancing, it is a good idea to understand what the different loan types are, and what you need in order to qualify.
The two types of loans available when considering FHA loan refinancing include an FHA Streamline Refinance and an FHA Cash-Out refinance loan. The Cash-Out Loan is a good choice if the home you purchased has increased in value. You can get a mortgage for more than what you already owe if you qualify. The Streamline Loan can often be approved without an additional appraisal, with no credit score check, and with no income verification. It will lower your interest rate and cut down on the paperwork you are required to complete when seeking out FHA loan refinancing.
If you already have an existing FHA mortgage you are automatically qualified to apply for an FHA Streamline refinance loan. You must also have been on time with all of your payments for at least the last six months. Another term of this loan is something called a Net Tangible Benefit. This means that your principle and interest on your mortgage must go down at least 5% with the FHA loan refinancing process you are requesting.
An FHA Cash-Out loan is going to require more information before you can be approved. Your credit score, payment history, debt to income ratio, and income earnings will all be explored before it will be determined if you qualify for this type of FHA loan refinancing.
If you are in the market for FHA loan refinancing, get in touch with the knowledgeable lending experts from Starboard Financial. With offices in Arizona and Illinois, we can talk you through the process and clear up any questions you may have.