FHA World Florida - Coconut Creek Florida
One of the best ways to reduce mortgage payments is to do a mortgage refinance as long as the new mortgage interest rate is at least one to two percent lower than the current rate and there is sufficient equity in the house. It's also important to a make sure there is no prepayment penalty on the existing loan.
To reduce mortgage payments, make sure a new loan will not cost more than the savings. The cost of your refinance should be saved within your first year. So, if the refinance cost you $2,500.00 you should have a monthly savings of $208.00 per month.
Conventional or conforming mortgage loans are mortgages that conform to Fannie Mae or Freddy Mac guidelines. When you refinance to get a lower payment you are doing a rate & term refinance. Conforming rate & term refinance have become for borrowers with good or excellent credit. The maximum loan-to-value for a conforming loan is 125.00%. So, even if your owe more than the property is worth you still may be able to refinance.
FHA World Florida - FHA Mortgage Rates. Today’s historically low FHA Mortgage Rates make now the perfect time to purchase a new home or refinance.
Getting an FHA loan has never been easier:
First, you need to get pre-approved. This is an easy step and does not cost you anything. Also, this step is very important -- as many people search out homes on their own just to find out that the house they found is not in the price range that they qualify for. This approach turns into disappointment and lost time. Most realtors will only work with people who have been pre-approved.
FHA World Florida - FHA Guidelines
Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum FICO score to be 580 for 85% loan-to-value for a cash out refinance. These FICO requirements went into effect in the spring 2010.
FHA Guidelines require a 580 credit score for 3.50% down payment. For credit scores below 600 a larger down payment if required. However, most individual lenders will require a credit scores higher than 640.
A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Sometimes scores down to 500 are accepted if there are compensating factors that offset the credit risk.
FHA World Florida - FHA Refinance
The FHA Refinance loan program allows for a Florida home owner to lower their mortgage payments. Looking to lower your payments FHA allows up to 96.50% Loan-to-Value rate & term refinance.
For home owners that need cash the maximum cash out refinance loan cannot exceed 85% of the appraised value of the home, which is 5% more than on a conventional loan.
As cash out refinance mortgage is defined as follows: A mortgage refinance where borrower gets more than $2,000 back after close of transaction, and / or, any refinance that involves consolidating a second mortgage or equity line that is less than 1 year old.
The cash out from your refinance mortgage can be used for any of the following:
You do not have to have an existing FHA loan in order to do a cash-out refinance. You may use the cash out refinance for 1-4 unit properties.
What documentation will I need?
Coconut Creek Florida Home Buyer Mortgage
Coconut Creek Florida Refinance
* FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
* FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
FHA Credit Score
Requires a minimum credit score of 500 to buy a home or refinance
A collection is minor in nature usually does not need to be paid off as a condition for loan approval
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure must have been resolved for at least 3 years
FHA guidelines requires three year past from the date of sale of the property
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