Have you been thinking about refinancing your 30 year FHA mortgage loan? An FHA or Federal Housing Administration Loan is a mortgage issued by a lender approved by the FHA with a loan insured by the FHA. These loans require lower credit scores and minimum down payments than many conventional loans.
In 2020 you can borrow up to 96.5 percent of your home’s value with the FHA. You will need to make a down payment of just 3.5 percent. To qualify, you need a credit score of 580 and higher. Lower credit scores may also be approved with a higher downpayment. Your downpayment for FHA loans can come from your savings or any other source of funds you have.
Those who already have a 30 year FHA mortgage loan do have the option of refinancing this. Refinancing your FHA loan might clear the room your budget each month, particularly with rates of interest dropping to historical lows. If the value of your home has grown, tapping equity with a regular loan could save you a bundle in insurance mortgage costs.
You might want to refinance your FHA loan if your home value has gone up and you need extra cash. If you aren’t eligible for an FHA to streamline and there is a drop in the rates, you can refinance. Private mortgage insurance will help you save money. When you refinance your FHA you can also get rid of FHA mortgage insurance.
Remember that with a 30 year FHA loan, it isn’t the actual FHA that lends you the money. Rather, you are getting a loan from a lender who is FHA-approved and your loan is approved by the FHA.
This is why some people call this loan an FHA-insured loan. This results in less risk for your lender because the FHA will pay in the event you default on the loan. Give us a call today to discuss refinancing your FHA loan, or availing of one, whichever option you prefer.