While homeowners typically equate the FHA loan program with low-down payment mortgages, FHA refinances are have a ton of benefit.
In addition to easy-to-source rate-and-term and streamline refinances that replace an existing FHA mortgage with a better one, the FHA even offers cash-out refinance loans.
A cash-out FHA loan refinance allows the borrower to take out up to 85 percent of the value of his or her property. In today’s market, the ability to pull out 85 percent of a home’s equity is attractive, but not as generous as a 96.5 percent FHA purchase mortgage.
Nevertheless, while the homeowner doesn’t get the high leverage of a regular FHA mortgage, he still gets many of its other benefits.
FHA Refinance Requirements
FHA cash-out refinances don’t impose limitations on how borrowers use the cash they take out. In addition, they also don’t require the applicant to have stellar credit.What they don’t need is an existing FHA mortgage — FHA cash-out loans are available even when a borrower is coming from a conventional mortgage.
To learn more contact your Maine FHA Mortgage Consultant Today!