Home | Finance

Today’s FHA Refinance Mortgage Requirements

Posted By: Robert Thomson | Posted On: 2008-09-30 | Article ID: 99087

Are you currently considering refinancing your home? possibly you have heard how interest rates are at 5 year lows or that FHA refinance loans and their updated programs have become extremely trendy. timely for you, both of those things are true making for an brilliant refinance opportunity. And it is no more testing to apply for an FHA mortgage than it is for a Conventional mortgage.

Before you decide to refinance, you should know the basic requirements for FHA Mortgages. To be eligible for FHA refinance loans, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specific percentage of your gross monthly income. This is called the “Top Ratio” and it should be below 31%. You must also have enough wages to pay your housing costs plus all additional monthly debt. This is called the “Bottom Ratio” and it needs to be below 43%. These percentages may be exceeded with compensating factors.

Your credit background will also be fairly considered. FHA refinance loan requirements are not totally credit score driven, while it is useful to have at least a 580 FICO score to achieve a faster approval. FHA guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances outside their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they’re usually going to be credit-eligible for an FHA refinance loan.

If you have had a prior bankruptcy, it may still be workable to get an FHA Refinance. If you have been discharged from a chapter 7 bankruptcy for two years or more, you are eligible to apply for an FHA refinance mortgage. If you are in a chapter 13 bankruptcy and have made all court accepted payments on time and as agreed for at least one year, you are also eligible to make an FHA mortgage application.

FHA Refinance Loans provide multiple options to meet the needs of your current home equity scenario. If your home has positive equity, you may be able to refinance up to 98.75% or 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is least. If you wish to take cash out of the property, then the maximum financing amount is either 95% or 85% of the current appraised value, depending on the borrowers qualifications. If you do not have sufficient equity in your home to pay off your present mortgage or cover your refinancing closing costs, then you should ask your lender to consider a “Write Down”. A “Write Down” is when your lender writes off the excesss balance owed for the purposes of refinancing a mortgage. The Housing bill that goes into effect on October 1st provide for a Write Down to 90% of the present appraised value for delinquent mortgage FHA refinances. Offering this option is at the discretion of the lender.

 

Article Source: http://www.articlecell.com

About The Author
Robert Thomson
Spencer is an FHA lending expert and has published many articles about the latest changes in FHA refinance requirements. You can find out more information about FHA Refinance Loans and FHA Mortgages at www.FHA-101.com.



Please Rate this Article     
Not yet Rated

 
Additional Articles From - Home | Finance

  • Comparing Corporate and Small Business Credit Cards - By : Irish Taylor
  • Knowing More About Timeshare Resale - By : Ben Needles
  • Building Code Inspections? To Code Or Not To Code, That Is The Question - By : Ben Needles
  • UK Secured Debt Consolidation Program For Credit Score Improvement - By : Ben Needles
  • The Advantages of Consolidating Your Debt - By : John Thackeray
  • The All Important Real Estate Agent - Selling Your Home in a Buyers Market - By : Ben Needles
  • What Questions Should One Ask before Offshore Investing? - By : Ben Needles
  • Get Ready, Get Set, Sell Your Home - 5 Tips for Sellers - By : Ben Needles
  • Benefits Of Comparing Student Loan Consolidation Programs - By : Ben Needles
  • Some Tips About Fast Free Cash Advance, Pay Day Loans - By : Ben Needles
    		•


     
     Submit Articles
     Member Login
     Submission Guidelines
     Ezine Notifications
     Popular Articles
     Article RSS Feeds
     New Stuff
     About Us
     Link to Us
     Contact Us
     Privacy Policy
     Terms of Service

     

    EnterArticles.com

    Submit Articles

     

    Monsterputt.com

    Golf Clubs and Accessories


     

    ArticleCell.com » Copyright © 2006 - 2007
    Terms of Service | Submission Guidelines | Contact Us | Link to Us | Privacy Policy | About Us

    Bridgestone J33R 460CC Driver | J36 Cavity Back Irons | Bridgestone Golf

    Powered by Article Dashboard