FHA Refinance

FHA Cash Out Refinances

A FHA cash-out 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:

• The subject property must have been owned by the borrower as his or her principal residence for at least 12 months prior to the date of the loan application.
• 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 refinanced 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 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 you have any questions, please send an e-mail to: joe.moore@nafinc.com (or) contact us at 800-310-7577.

 

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*24 hour FHA loan approval is contingent upon receiving all pertinent income, collateral documentation and a signed authorization to request credit. Once all requested documentation is received, we are able to request credit and submit for an automated underwriting decision, final approval is subject only to a signed purchase contract, clear title and appraisal. If we are unable to receive an Approve/Eligible the borrower is given the option to submit for a manual underwriting which can take approximately 7-10 days.