Home Refinance: recommend any lenders?

What is different about a FHA loan?

I'm getting the same 4% over the phone quotes, I haven't given any of them the nod to run my credit yet.
 
The basic differences I've found is the FHA is a government guaranteed loan. Meaning, the lender doesn't have any financial risk. Also, a rate and term FHA refinance loan can loan up to 97.5% of the appraisal value of your home. If you have a home equity and have tapped into it in the last 12 months, then the limit is 85% of value. This is called a cash-out FHA refinance loan. I "think" there's a dollar limit on how much tapping you've done. If you've used less than $1000 then you still qualify for the 97.5% loan to value ratio. However, I've gotten mixed responses on that. I'm still reading up on the whole FHA thing, but it seems like the way to go if you qualify.

Most every lender I've talked to says they always consider FHA first and then a conventional if you don't qualify for FHA. Of course they do! It's like free money to them. Works for me since the rate is lower.


---

This site seems to have good info on FHA: http://www.fhainfo.com/fhavsconventional.htm
 
BB&T is where we do biz for 23 years. My CS is 808 and the wifes is 802. With our history it helped us out big time. We financed a "second home" that we bought at a deal.
 
FHA loans are very strict on the appraisal/inspection. Basically safety type stuff. All Electrical must work, water must work. If you decks or porches they haft to have handrails if there over XX height. If your windows came with screens they must be in place. Windows must work and no broken glass. Stuff like that, if your working on your house don't bother with the FHA as it more than likely wont pass.

I just tried to refi, and my house came in way under what I paid for it just 4 years ago. (before the :poop: hit the fan) So there fore no go for me:rolleyes: But that's life. IMO I'd go conventional but your likely to get a little better rate with an FHA.
 
I was able to lock in a 3.875% on a 15 year through my credit union. Glad I jumped on this as the rates (even with them) have already climbed to 4.0 % or more.

:beer:
 
Back
Top