Purchase vs. Refinance
Many people make
the mistake that a FHA loan are solely for first time buyers to
purchase a home. While this might be one of the more popular
transactions, FHA loans are available to anyone for both
purchases or refinance transactions. FHA does not have any
income restrictions or location restrictions. The do however
have maximum mortgage limits that vary by state and
certain programs that are sponsored by city, county and state
government programs that piggyback on top of FHA loan programs
that offer below market or subsidized payments that have
income or location restrictions.
FHA loan financing is
available up to 97.75% of the purchase price for one to four
family owner occupied properties.
currently have a FHA loan may choose to refinance using the
FHA Streamline Refinance program.
Borrowers who have
other types of loans may refinance up to 97% of the appraised
value if they are only paying off their existing mortgage or
up to 95% of the appraised value if they are paying off debt
or taking cash out of the transaction.