Fha Refinance

Refinance Options For FHA Mortgages

December 12, 2011 By Eleanor 1 Comment

If you currently have an FHA Mortgage, we might want to peak and see if you’re eligible for an FHA Streamline Refinance. This is a great program, that differs GREATLY from other mortgage programs! Under the updated FHA guidelines, you can refinance to lower payments with No Income Verification, No Appraisal… it’s pretty simple!

The FHA Streamline Refinance program is only available to folks who currently have an FHA home loan mortgage. Even if you are not currently occupying the property, we MIGHT be able to do a Streamline refinance! This is not a program designed for those who want to take equity out of their home, only for those who currently have an FHA mortgage on their home, and want a lower mortgage rate! It’s one of the easiest, fastest ways to get your payments down!

One of the biggest differences between the FHA Streamline Refinance, and a VA Streamline Refinance (or a USDA Refinance for that matter) is that the program does not require an updated home appraisal. [Read more...]

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FHA Refinance, A Streamlined Process in NC

January 20, 2011 By Eleanor Leave a Comment

Homeowner’s who currently have FHA mortgages might want to check with us to see if now is the right time to refinance. Fannie Mae and Freddie Mac are changing their guidelines at the beginning of April – and we believe all mortgage loans could be more expensive because of this.

Many of the people we talk to in NC with FHA refinance questions want to know how a Second Mortgage might change their ability to refinance. If you have a 2nd mortgage (or any junior liens like a Home Equity Loan HELOC) older than twelve months old then this would be considered a regular refinance and could not be done as a streamline refinance. If you have a second mortgage or Equity Line that is LESS than 12 months old it still might not work as a Streamline, and you need to call us with all of the details.

Some Key FHA streamline changes in the last 18 months in North Carolina: [Read more...]

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Filed Under: FHA Mortgage Loans Tagged With: fha appraisal nc, FHA mortgage Cary, fha mortgage loan raliegh, fha mortgage second mortgage nc, fha refinance, fha refinance appraisal requirements nc, fha streamline refinance guidelines nc, fha streamline refinance nc, refinance fha mortgage nc, wake county fha refinance

FHA Making Sweeping Changes, AGAIN!

September 21, 2009 By Eleanor 1 Comment

It’s been rumored for several months that due to raising default rate – FHA was in “trouble.”

Last week, FHA made several announcements that will ROCK the mortgage lending world again!

Affecting the borrower, will be tighter rules on “FHA streamlined” refinances. These refinances are for FHA to FHA loans, and prior to these announcements, if you had been making your payments on time… FHA didn’t really want to update income / employment history. Well, that’s all rumored to be changing…. FOR NOW, the main changes to the Streamline loans has to do with number of months you must have the loan prior to refinancing. For details, read here.

The BIGGEST CHANGE, however, IMHO is the change to networth requirements for lenders who want to do business with FHA. It went from $250,000 (liquid) to $1,000,000. This is a WHOPPING big number – and it means only BIG players will be selling directly to FHA. Watch for MANY smaller shops, that are already getting gobbled up… to continue in that path!

WOW! A MILLION DOLLARS LIQUID just to do business with FHA. That’s a big number.

If you are considering a new home in Raleigh, or refinancing in Cary, NC – contact Steve and Eleanor Thorne. 919-649-5058

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Filed Under: FHA Mortgage Loans, Housing News Tagged With: fha loans cary, fha loans raleigh, fha mortgage loans, fha refinance, fha streamline refinance, HUD

September 16, 2008 By Eleanor 3 Comments

Okay – so here’s something that will stump the loan officer.

You bought a property in Feb. of 2008. You got a Heck of a Deal – and you purchased the home for $237,000. The appraisal in February was for $245,000 (and the appraiser thinks it’s worth more now). The loan in February was a conventional 100% Community Reinvestment loan (those are no longer available). Your credit is good, you qualify, and since your rate is currently 6.875% – you’d like to refinance.

And maybe you’d like to refinance to an FHA loan, which today is 5.625% with no origination fee, and save over $250 a month on your monthly payment…

Well - you have a problem.

Buried in the new FHA guidelines, 702.2… it says:

Property Acquired Less Than One Year. If the property was acquired less than one year before the loan application and is not already FHA-insured, in addition to the calculations described above, the original sales price of the property also must be considered in determining the maximum mortgage. With conclusive documentation, expenditures for repairs and rehabilitatoin incurred after the purchase of the property may be added to the original sales price in calculating the mortgage amount. (this use to be six months)

And there you have it folks. If you are refinancing from Conventional to FHA (or USDA or anything else) then you need to have 12 months history owning the property.

Since it’s not really worthy of a post – you should also know that USDA is for purchases only. Since it’s the only really good 100% program for those of us who are not Vets – figured I’d mention it.

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Filed Under: FHA Mortgage Loans, USDA Home Loans Tagged With: fha refinance, refinance rates

Subprime Refinances

August 1, 2008 By Eleanor 7 Comments

note With the anniversary of the “Subprime” Mortgage Meltdown Mess, I figured I’d take a look at what we’ve got left.

Many people during 2004 through 2007 purchased homes with little to no money down, using a stated income product. These loans were often referred to as subprime, or non-conventional loans, and many of them either adjusted to interest rates above 9% – or they are about to.

People who purchased a home with this type of loan product normally did so with hope in their heart, and expectations of gain $$$ when they sold!

Now – a year after the house of cards began to fall, we know that the “hope” that some folks felt as they purchased these homes was built on false assumptions. The assumption was that the property would continue to appreciate, and the job market would continue to improve, and everyone would be able to flip the house for a nicer one in a couple of years.

If you were one of those people – you might find yourself now facing higher payments, eating peanut butter and jelly sandwiches 4 nights a week and working a second job…

FHA has some new guidelines that help those that are in your situation. If you find yourself here – please call us and see if we can refinance you into an FHA mortgage. The maximum loan amount in Wake County is $295,000.

We’ve helped MANY people get MUCH lower payments, keep their home, and get on a more realistic path!

Steve and Eleanor Thorne, Connect With Us on Facebook, Raleigh, NC 919-649-5058