Refinance your property with FHA

You Are Ready to Refinance

You already own a home, so you're at least somewhat familiar with the mortgage process. You now want to refinance
your mortgage and are considering an FHA-insured mortgage. You'll find out that refinancing through FHA is the same
as applying for any other loan, plus you have many more protections and it's easier to get qualified with FHA.

First, determine what kind of loan you already have
If you already have an FHA-insured loan, you have a few more options for refinancing than if you than if you have a
conventional or other non-FHA loan. Ask your lender.

Second, determine what you're trying to do
Are you looking to take advantage of lower interest rates? Are you looking to consolidate some credit card debt or a
home equity loan into one single mortgage? Are you looking to take cash out of your property? Your refinancing goals
will determine what kind of refinance loan you want to apply for.

Third, figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest
rate. There are some online tools you can use, and some tools that your real estate agent can help you with, but it's
best to visit an FHA-approved lender to find out for sure.

You should remember that prequalification (an informal estimate of how much you might borrow) is just to give you a
preliminary idea of what you can afford, and to identify any major problems that you will want to fix. It's not a guarantee
that you will be approved for a loan-but you will want to get pre-qualified to avoid any surprises.

State regulatory authorities. Some states require licensing of home inspectors.
Professional organizations. Professional organizations may require home inspectors to pass tests and meet minimum
qualifications before becoming a member.
Phone book Yellow Pages. Look under "Building Inspection Service" or "Home Inspection Service".
The Internet. Search for "Building Inspection Service" or "Home Inspection Service."
Your real estate agent. Most real estate professionals have a list of home inspectors they recommend.
Fourth, shop for a loan
Save money by doing your homework. Talk to several lenders, compare interest rates, and negotiate or bargain to get
a better deal. Consider getting pre-approved for a loan.

Why ask for an FHA-insured mortgage loan? There are many reasons to ask your lender for an FHA-insured loan
instead of a conventional loan or an expensive, risky subprime loan.

Lower cost - FHA-insured loans have competitive interest rates because the the Federal Government backs the
loans. Always compare an FHA-insured loan with other loan types.

Smaller down payment - The FHA offers a low 3% downpayment, and that money can come from a family member,
employer or charitable organization. Many other loans don't allow this.

Easier to qualify - Because the FHA insures your mortgage, lenders are more willing to give loans with lower
qualifying requirements, so it's easier for you to qualify.

Less than perfect credit - Even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for
an FHA-insured loan than a conventional loan because FHA insures your mortgage.

More protection to keep your home - The FHA has been around since 1934 and will continue to be here to protect
you. Should you encounter hard times after buying your home, the FHA has many options to help keep you in your
home and avoid foreclosure.