Can an FHA loan be refinanced in the future?
I know alot has changed through the years on FHA loans, like not being able to sell but you can now. I was wondering if it could be refinanced in say 10 years. I'm almost sure my broker said that it could.
- Quicken LoansLv 51 decade agoBest Answer
Yes, your FHA loan can certainly be refinanced. Just make sure your lender does not charge prepayment penalties (A pre-payment penalty is a fee that some lenders charge if the loan is paid off earlier than the specified term of the loan. Depending on your loan program and applicable state law, you may or may not incur a pre-payment penalty. Contact your loan officer for specific information. Avoid lenders that charge this penalty.)
I'm not sure if you currently have an FHA loan, or if you're considering getting one, so I thought I'd include some information about FHA loans that you might find helpful:
FHA loans are government-insured loans that offer security and can also be great for those with lower income and less than perfect credit. FHA only requires 3% down payment and allows up to 95% cash-out refinance.
* FHA loans are available as both a 15- and 30-year fixed-rate loan.
* FHA loans are created by the Federal Housing Administration.
* You can refinance up to 97% of your home's value. Or, if you'd like a cash-out refinance - you can get up to 95%.
* Only a 3% down payment is required for home purchases until December 31, 2008, after which the minimum down payment rises to 3.5%.
* If you have an ARM that is adjusting upwards, you can refinance your mortgage up to 97% of your home's value.
* Congress also raised the loan amounts of FHA loans. This significantly raises the amount of the maximum mortgage that will qualify for the great low rates and security of an FHA loan.
Hope this helps!Source(s): https://www.quickenloans.com/
- Anonymous1 decade ago
of course your FHA can be refinanced. However FHA loans generally have the lowest Interest rates. Under the new government initiative if you pay more than 30% of your income on your home mortgage then you can qualify for mortgage assistance. But to get straight to the point on your question. You can for certain refinance, generally if you can find a better rate you can do it after a year. However, there are no guidelines for the length of time in which you have to have your loan. If you want more information just go to www.FHA.gov. The only problem with your question is your asking about something that could literally change in the day or month, year or perhaps decade. I would say if you have somewhere around a 6.5 or lower your doing pretty good and better than most people. Generally the only kind of loan that will get you a better interest rate is something like a 5/1 arm but they aren't any good unless you plan on getting out of your home in 5 years or less. Anyway have a nice day, hopefully this answers your question.
What the person below failed to mention is the through recent events FHA has gone through some changes I do know that the minimum DP will be 3.5 % and the some of the other guidelines have changed as well. Personal note quicken loans will try and sell you anything so beware!!! By the way I am not a banker or loan officer just someone with experience in the field of attaining loans. As I mentioned before in my email try the company I suggested, get a good faith quote and see what your options are.
- vivierLv 43 years ago
confident as long as you qualify- FHA is incredibly a great loan. you additionally can do a streamline later in case you do not choose funds out. those do not even require earnings verification or a sparkling appraisal. FHA figures that in case you already qualified and nonetheless have an FHA loan and you have not been late there is not any reason to not refinance & furnish you with a extra advantageous cost.