Is FHA Mortgage the Best Choice for Refinancing?

For over eighty years, the Federal Housing Administration has been facilitating FHA refinance mortgages for all types of credit, property types and in all 50 states. Refinancing a mortgage can have major implications, so it’s important to choose the loan type and lender wisely.

Year in and year out, Americans have been successfully getting a mortgage refinance with FHA. If you are searching where to find the best company for a FHA refinance mortgage, this website is a great place to start.

We have developed a system to help consumers find the FHA home refinance option that best meets their financial needs.

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Not all lenders are FHA approved, so when you are shopping companies it is important that you are comparing lending sources that have the HUD stamp of approval to originate FHA mortgages.

Is it important for you to find a lender that offers the lowest rates for FHA refinancing? If so then completing a request form to compare refinance offers from competitive FHA mortgage lenders makes sense.

5 Signs When Home Refinancing with FHA Makes Sense

Here are a few reasons why people choose the government for FHA mortgage refinancing:

1. If you have credit scores below 620, FHA has become a popular choice for mortgage refinancing. (The minimum fico score is only 500. FHA for bad credit mortgage refinances.

2. If you had a bankruptcy over foreclosure in the last 5 years, many people like FHA for home refinancing. You now only need 12 months of loan payments on time to be eligible for a FHA mortgage refinance for poor credit after the BK discharge date of foreclosure.

3. If you have a few late payments on your mortgage in the last three years, FHA could be ideal.

4. If you have 0 to 5% equity in your house, a FHA mortgage refinance makes sense. Most private lending companies expect borrowers to have 20 to 30% equity, but in today’s housing market many people have little or no equity so the fact that FHA only requires 3.5% is huge benefit for refinancing.

5. If you want to take money out your property but only have 15% equity (85% LTV), FHA is great for cash out refinancing. Many borrowers like refinancing with FHA because the underwriters see the benefit for them to consolidate 1st and 2nd mortgages.

FHA allows cash out to people that want to roll in in high interest charge cards with their mortgage liens.

At BD Nationwide we can help connect you with lenders that offer the best FHA refinance loans in the business. For more info from top lenders, all you need to do is complete the form below and you will be able to shop and compare mortgage refinance from FHA at no cost.


Why Is FHA Recommended for People with Poor Credit Scores?

In many instances, when the borrower has little or no equity, FHA is the only choice for home refinancing. There is mortgage insurance required on most FHA mortgages so you have to factor in your total housing expenses when comparing your existing situation with an FHA refinance mortgage option.

If it saves you more than a few hundred dollars a year, than choosing FHA for a mortgage refinance is likely a good decision. Since 1934 the Federal Housing Administration has been extending FHA home refinance options for people with limited and poor credit scores.

FHA has always exemplified fair lending for all Americans. It’s hard to find private banks that will take risks like the government will with mortgage refinance loans insured by FHA. Have you researched home refinancing for people with bad credit? With non qualified mortgage programs and low fico scores, most paths lead back to FHA for mortgage refinances. FHA Interest rates are competitive and credit standards are far more flexible than Fannie Mae or Freddie Mac finance products.

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FHA Refinance Mortgage Opportunities

There are a lot of changes going on with respect to the Federal Housing Administration, so we suggest talking first with lenders that are approved to provide FHA refinance mortgages to people with all types of credit. Before committing to a new mortgage for thirty-years, it makes sense to evaluate your present options with experienced lenders. BD Nationwide makes shopping for FHA mortgage refinance loans a more pleasurable experience. Take a few moments a get a quote from competitive lenders now. There is no obligation and we never charge any application fees.

Pros and Cons Of Mortgage Refinance Loans With FHA

When it comes to securing a loan for a new home, there are numerous options available, whether it’s the first home purchase or a refinancing endeavor. One popular avenue is obtaining financing through the Federal Housing Administration (FHA), which aims to keep housing costs affordable, enabling more individuals to achieve homeownership. While FHA mortgages offer several benefits, there are also considerations to bear in mind.

One significant advantage of FHA mortgages is their lenient lending standards, allowing a broader range of individuals to qualify, including those with a credit score as low as 500. The Federal Housing Administration has proven to offer new opportunities start-over with FHA loans and bad credit.  Few lenders can match the standards set by the Federal Housing Administration. Additional pros include:

  • Exceptionally low rates
  • Lower equity requirements

However, an FHA refinance may not be the ideal choice for everyone, and there are some cons to consider, such as:

  • Limited loan amounts
  • Mandatory mortgage insurance
  • Income documentation limitations

Mortgage insurance is a requirement for FHA refinancing, and some homeowners might experience higher monthly payments due to this additional expense. While an extra $30-$50 may not be a deal-breaker for everyone, it’s a factor to consider when evaluating whether FHA is the right resource for refinancing.

FHA mortgage refinance loans are a valuable option, especially for individuals looking to refinance with less-than-perfect credit. Since many seek to refinance for more favorable rates or lower monthly payments, comparing lenders side-by-side is a prudent approach to find the one aligning with individual needs.

While FHA refinance loans may be the best choice for many, others may discover that conventional loans better suit their circumstances.