Federal Housing Administration Loan (FHA), assists borrowers who may need a low down payment and flexible mortgage guidelines. The FHA loan is a great product that helps many people refinance. There are numerous refinance programs available through FHA from fixed rates to streamlined programs designed specifically for those holding a current FHA loan. Even if you hold a conventional mortgage, an FHA refinance may make sense as it typically has less stringent qualifications. Similar to conventional fixed-rate options, you can obtain an FHA fixed rate loan in a 30-year or 15-year option. The same benefits would apply as a conventional fixed-rate—the stability of a consistent rate over the course of a loan. Also, credit requirements may be less stringent if you are concerned about qualifying under conventional guidelines.
- Under the FHA streamline program, current FHA loan borrowers can refinance with no appraisal.
- Up to 97.75% loan to value (LTV) for a rate and term refinances.
- Up to 85% loan to value (LTV) for cash out refinances.