Find! FHA Experts

FHA Cash Out Refinance Home Loan Information
Apply for a FHA Loan
FHA Mortgage Rates
What is an FHA Loan
FHA vs. Conventional
FHA loan limits
FHA Mortgage Insurance
Required Documentation
FHA Closing Costs
Purchase vs. Refinance
FHA Streamline Refinance
FHA Refinance Loan
FHA Cash Out Refinance
FHA Hybrid Arm's
Hope 4 Homeowners H4H
FHA Jumbo Loan Program
Reverse Mortgages
FHA Secure Program
203-K Rehab Loans
203-K Streamline Loans
Find a 203-k Consultant
FHA Kiddie Condo's
Officer next door
Teacher next door
MIP Refund explanation
FHA HUD homes
Home Buying Guides
Message Boards
FHA/VA Blog
 
Get the answers to all your 'bottom line' questions on our Mortgage Calculators Page.
Website Awards
Business Links
Link Exchange
FHA Mortgage Leads
About Us
Privacy Policy
Equal Housing Opportunity.
Equal Housing Opportunity Logo 

 

  www.FHAinfo.com 
2692 Madison Rd. Suite N1 #249, Cincinnati, OH 45208 ---  Contact Us

Copyright © FHA Info 2001-2012
All Right Reserved

 

         FHA Cash Out Refinance Loan         

Home owners with or without FHA home loan may use the FHA Refinance Loan, the cash out FHA refinance loan, or the FHA Streamline refinance program to consolidate their bills or take cash out of their property or just lower their interest rate and payments.

FHA Cash Out Refinances

Cash-out FHA refinance loans on properties owned more than one year prior to the FHA refinance are permitted on owner occupied principal residences only, and are limited to 85% of the appraised value up to a base loan amount of $417,000.  If the base loan amount (loan amount prior to adding the MIP premium) is greater than $417,000, then the maximum loan to value is limited to 85% and will require a second appraisal.

A cash-out FHA refinance loan is when a borrower refinances their current mortgage for more than they owe in order to pull out the built up equity that has accrued in the home. The amount a home owner can borrower is limited by the value of the property compared to the loan amount (otherwise known as the loan-to-value or LTV). 

The following are basic requirements of a cash-out FHA refinance home loan:

  • Borrowers who are delinquent or in arrears under the terms and conditions of their current mortgage(s) are not eligible for a cash-out FHA refinance.

  • The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.  If the borrower has not owned the the property for a minimum of 12 months, the FHA refinanced insured new mortgage is capped at 85 percent LTV.  In such cases, the FHA mortgage amount must be calculated using the lesser of the appraised value or the original sales price of the property multiplied by 85%. However, a sales price need not be considered if the property was acquired as the result of inheritance and is or will become the heir’s principal residence

  • If said property is encumbered by a mortgage, the borrower must have made all of his/her mortgage payments within the month due for the previous 12 months, i.e., no payment may have been more than 30 days late and is current for the month due.  

  • Applies to owner occupied properties only.

  • The property that is security for the FHA refinance mortgage must be a 1- or 2-unit dwelling.

  • Loan amounts may not exceed the maximum loan limits for the area.

  • Subordinate financing may remain in place, but subordinate to the FHA refinanced insured first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.

  • All borrowers must credit qualify.

  • Any co-borrower or co-signer being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.

  • If a homeowner is pursuing a cash-out FHA refinance and the loan balance exclusive of FHA’s upfront mortgage insurance premium will exceed $417,000, the loan-to-value may not exceed 85 percent of the appraiser’s estimate of value.

  • Apply for your Cash Out FHA Refinance Now!   

    For those that currently have a FHA home loan and do not qualify for a regular FHA refinance or want to take any cash out or consolidate any bills they may want to consider a FHA Streamline Refinance Home Loan.

     

    How to Qualify
    Understanding fha loan credit guidelines
    Credit Guidelines
    fha loan income guidelinesIncome Guidelines
    overcome credit problems to get approved for a fha loanOvercoming Credit Problems
    FHA loan case studies


    Case Studies

    FHA loan underwriting


    What are compensating factors ?

    How much money do you need for a fha home loan

    How much money do I need?

    Where can you get Free down payment moneyWhere to get down payment money