Ever Consider an FHA Refinance Mortgage
Article by Greg Lietz
When it’s time to shop for refinancing, no one is overly thrilled about the dry research that is necessary to do to provide for the best deal we can get on a FHA Refinance Mortgage.
Only a mortgage banker is likely to be interested in the details of mortgage refinancing. The rest of us want to know that we’re getting the best solution with the least amount of work, so we can get on with our lives. Up until now, it’s seemed impossible to get out of doing all the research, but FHA Refinance Mortgages can spare us from that. You can get a solution from an FHA Refinance Home loan that will be tailored to your exact personal needs. You can get just what you need at the right time, and know that you’re working with an established organization.
THE FHA, which stands for Federal Housing Administration can help you to refinance your current home mortgage whatever your reasons for wanting to do so, and offer you certain benefits as well. The FHA is a guarantor for lenders who provide the funding to you and permit you to use it in more creative and unique ways than do many of the more conventional lending institutions.
What FHA Refinance Mortgages do is to provide insurance on your loan or effectively on your ability to pay the loan, so that the mortgage lenders who are in the business can offer you a much better mortgage interest rate when you borrow money because they have a higher assurance of being repaid.
FHA, in general, accepts those loan applicants who have a proven credit worthiness; however, the not so credit-worthy borrowers are also considered. This category includes people who have faced credit issues but have not faced bankruptcy in the past five years. Single parents with a sole source of income as well as those individuals who have no prior history of credit are also accepted by the FHA. In any case, the FHA program is beneficial in many different ways. With the help of your home equity, the FHA can help you borrow money that can be used for home repair and improvement purposes provided that the improvements are energy efficient. FHA demands that any repairs or renovations of home associated with the funding should be energy efficient.
Borrow cash and use your home equity to make home repairs and renovations; in addition, the building of a spare room and roof fix for your financial needs – the FHA helps to accomplish all this.
FHA’s only consideration is towards natural resource conservation, which should be the aim for all of us. As such, the FHA Refinance Mortgage’s only requirement for loans is that any type of renovations or improvements should be done in cost-efficient and energy-efficient ways.
The real question is, with the myriad of lenders and literally thousands of loans that are out there in the refinancing arena, why would you chose the FHA Streamline Refinance Mortgage to refinance your loan? What do FHA Refinance Home Loans have to offer that conventional mortgages do not?
However, an FHA Refinance Home Loan actually offers you ways to do things that you won’t be able to with most other types of mortgages.
FHA loans guarantee repayment for lenders
You can pay only as much as perhaps a 3% down payment on your home and also finance the closing costs of it with the mortgage.
The FHA is willing to help you find homes and lending situations that require no down payment.
You can buy a home that is in bad shape and finance the cost of those repairs with your mortgage.
FHA loan can be used to buy manufactured housing or mobile homes
The amount you borrow for your mortgage can also be used to cover the cost of repairs to your home.
FHA Refinance Mortgage is perhaps a misleading title in that the FHA does not in fact lend you the funding but rather guarantees the loan for other lenders who provide the money for the FHA Home Loans that agree to abide by the FHA’s rules of lending. The Lending institutions, in turn, are assured that the money they lend you will be repaid even should you default on your loan and as such are willing to lower interest rates and provide other incentives to you.
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