The average FHA mortgage rate for a thirty-year home loan dropped below 5% this week. Mortgage Brokers Network executive, Steve Park said, “This is a rare opportunity to revive the mortgage industry because interest rates have dropped to record levels that have not been available for the last forty years.” Homeowners across the country realize this rare financing opportunity, so thousands of borrowers are rushing to lock into this monumental era that could spur a much needed home refinancing boom.
Today, the biggest obstacle for most borrowers is credit. In many cases, conventional lenders have credit score requirements seeking credit scores over 680. In this dried up credit markets, even professionals like doctors or lawyers have found it difficult to qualify for a traditional mortgage. If you’re interested in a refinancing mortgage, it is imperative that you have good or excellent credit and the ability to be able to provide documentation for income that lending underwriters deem sufficient.
FHA still offer a refinancing opportunity for borrowers with good or bad credit can qualify for a FHA home loan that is fixed for thirty years. The most popular FHA loan allowing refinancing is the FHA mortgage that requires borrowers to be at 97% loan to value for the standard FHA rate and term refinancing and 95% cash out refinancing would require home owners to have at least 5% left in your home equity. However in some cases the FHA lender will require two appraisals for cash out refinancing above 85% loan to value.
If you have no equity available because of the declining home value, consider the Hope for Homeowners program insured by FHA. This unique program enables homeowners who have mortgage balances greater than the appraised amount. If you are unable to qualify for Hope for Homeowners, consider a loan modification, because credit scores and late payments will not prevent you from renegotiating your mortgage rate. www.contactify.com/b4364
Today, the biggest obstacle for most borrowers is credit. In many cases, conventional lenders have credit score requirements seeking credit scores over 680. In this dried up credit markets, even professionals like doctors or lawyers have found it difficult to qualify for a traditional mortgage. If you’re interested in a refinancing mortgage, it is imperative that you have good or excellent credit and the ability to be able to provide documentation for income that lending underwriters deem sufficient.
FHA still offer a refinancing opportunity for borrowers with good or bad credit can qualify for a FHA home loan that is fixed for thirty years. The most popular FHA loan allowing refinancing is the FHA mortgage that requires borrowers to be at 97% loan to value for the standard FHA rate and term refinancing and 95% cash out refinancing would require home owners to have at least 5% left in your home equity. However in some cases the FHA lender will require two appraisals for cash out refinancing above 85% loan to value.
If you have no equity available because of the declining home value, consider the Hope for Homeowners program insured by FHA. This unique program enables homeowners who have mortgage balances greater than the appraised amount. If you are unable to qualify for Hope for Homeowners, consider a loan modification, because credit scores and late payments will not prevent you from renegotiating your mortgage rate. www.contactify.com/b4364
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