An FHA loan is administered by the Federal Housing Administration (FHA), and is typically easier to qualify for when compared to conventional loans – and accessible to people of all income levels. Private lenders like banks and credit unions issue them, and with the FHA guaranteeing the loan, lenders are more willing to approve applications.
There are two ways you can refinance your FHA loan: go with a streamline refinance or switch to a conventional mortgage.
When you swap your FHA loan for a conventional loan, you probably won’t have to worry about paying for mortgage insurance if you’ve built over 20% equity in your home. The end result could be a lower monthly payment – and big savings.
And what if your credit isn’t in the best shape, but you want to save a little money – the FHA Streamline Refinance program might be right for you. If you’ve kept up with your monthly payments for at least a year, you can apply for one without having your income, employment, or credit verified.
Contact us today to see if an FHA loan or loan refi is right for you!
Embrace Home Loans has dedicated Mortgage Specialists ready to work for you now.