Homeowners looking to simply improve their monthly expense outlay or looking at ways to stabilize when facing a financial setback as a result of the housing crisis, should know that savings could be quite substantial with FHA Refinance Program. This is true even for those who think they already have pretty attractive rates!
The Federal Housing Administration offers a refinancing program for homeowners with FHA loans. FHA insured loans are a type of federal assistance. It has already helped thousands of American citizens to borrow money for procurement of a home, that they would not otherwise have been able to afford to. However, there is a misconception that a FHA refinance home loan exist only for homeowners with an existing FHA-insured mortgage. The FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance) plan, under the umbrella of MHA program, assists even those homeowners whose first mortgage was not insured by the FHA. If the mortgage is considered under water, which is to say that the property's value according to prevailing rates is less than the amount owed, then a borrower can apply for refinance through this program.
Now, remember that FHA Short Refinance may be an option that a lender will consider if the borrower owes more than the home value, inspite of being regular with mortgage payments. FHA Refinance Mortgage plan has been put forth to help homeowners refinance into more affordable, more secure FHA-insured mortgage. If the current lender agrees to participate in this refinance program, a loan amount would be reduced to 97.75 percent of a home's present value. The eligibility criteria for FHA refinance program, for short refinance, states that the existing mortgage should not be owned or guaranteed by FHA, VA or USDA. It works when the loan amount is more than what the home is worth and when the said home is the primary residence. Another stipulation is that the total debt amount shouldn’t be above 50 percent of the borrower’s salary. The borrower shouldn’t have been convicted of felony, larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction, to be eligible for it. For this mode of refinancing, standard underwriting requirements apply.
FHA refinance rate is quite reasonable too. So through this plan, borrowers can hope for a number of benefits in the form of lowest interest rates, easily affordable monthly payments and low upfront fees. Besides, a borrower also has the opportunity to select a convenient loan term. To obtain more information on how to refinance with a backing from Federal Housing Administration, one may seek help from agencies on the net. Remember, companies which offer mortgage services online employ professionals who are essentially mortgage specialists. As a result, when assistance is sought, one can expect help from a competent local expert who is well versed with the eligibility guidelines and process requirements that apply to FHA refinancing. To read more on this topic, refer to websites like www.refinanceitt.com.