FHA Cash Out Refinance
The Federal Housing Administration allows homeowners to refinance to an FHA loan for more than what is currently owed on their property and access the equity through a cash out refinance. Homeowners who are refinancing an owner-occupied property can use this refinance option whether or not the property’s current mortgage is an FHA loan.
FHA does not dictate how these funds can be used, but it does require that the new loan is the primary mortgage on the property. To qualify for an FHA cash out refinance loan borrowers must be current on their existing mortgages with no delinquent payments in the past 12 months. The loan cannot exceed 85 percent of the loan-to-value ratio under current FHA guidelines and borrowers must live in the property as their primary residence.
Are you looking for an affordable way to pay down debt or fix things up around your home? If your property has gained significant equity over the years, you might be sitting on your family’s greatest investment. With an FHA cash out refinance, you can utilize some of that equity while potentially refinancing at a more competitive interest rate. Let one of our home loan specialists talk you through the FHA refinancing process so you can utilize some of the money in your home for the things your family needs today.