If investing in your property is something that is of interest to you, it is worth considering the benefits of using an FHA loan to refinance. Lenders can issue loans that are insured under the Federal Housing Administration. The program got its start in the 1930s in response to a large volume of defaults and property foreclosures. FHA home lending worked to spark the housing market then, just as it does today, making ownership within reach of a greater number of people.
An FHA refinance loan will require some pieces of information in order for approval to be achieved. These are certain to include your address for the previous two years, your employment history for the same period, two years of income tax returns as well as 1099s and W2s. You will also need to provide two months of personal bank statements as well as employee pay stubs.
Ensuring that these documents are easily accessible at the time of application will make things run faster and far more smoothly.
When you have only a small amount of equity in your home but still wish to refinance, the rate and term refinancing option may make the most sense. This serves to lower the present rate of interest you are paying on your mortgage and cause you to have a reduced monthly payment. In effect, your loan terms can be changed without having to forfeit the equity you have accumulated thus far.
FHA refinancing loans permit LTV ratios upwards of 97.75 percent in contrast to conventional loans that max out at 95 percent LTV. As such, FHA refinances loans offer a good deal more flexibility and availability.
As you consider home refinancing options, make sure to review all of the products available on the market. Because we specialize in FHA loans, we have the knowledge necessary to guide you through the process and help you make an informed decision. Finding a mortgage that truly suits your needs and circumstances can pave the way to a stable financial future. Whether you select Streamline FHA product on an existing FHA mortgage are opt for a regular rate and term FHA loan, your payments are certain to be lowered, and you will build up equity at a more rapid pace.
Prodigy Lending is a DBA of AmCap Mortgage, Ltd. (NMLS ID# 129122 – www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/129122), an Equal Housing Lender.
Managing RMLO: Jason Turner (NMLS #286357)