What is an FHA loan?

The Federal Housing Administration (FHA), part of the U.S. Department of Housing & Urban Development, offers different types of home loans to help you buy a home. An FHA refinance loan is often easier for consumers who:

  • Already have an FHA loan
  • Have little or no prior credit experience
  • Credit scores as low as 500 may qualify
  • Have limited funds for monthly payments
  • May not qualify for other types of loans

Carrington offers FHA loans and will help you apply for a refinance.  FHA, backed by the U.S. government, insures the loans. They typically offer flexible underwriting guidelines that may not be available for conventional loans.

Is an FHA streamline refinance right for me?

If you already have a current (not delinquent) FHA mortgage and want to refinance it for a lower rate, payment, or to shorten the term (length of time to pay your loan off), an FHA streamline refinance may be for you. It requires less borrower documentation and no appraisal.

If you do not have an FHA mortgage, there still may be advantages to refinancing with FHA.

Is an FHA refinance right for me?

An FHA refinance (not a streamline refinance) may be the right solution for you.  It requires more documentation but chances are that refinancing with an FHA loan is a good solution for you, especially if you have less than 20% equity in your home:

  • Easier qualifying
  • Fixed interest rates
  • Lower rates
  • You can get cash-out to use for any reason (consolidate debt, home improvements, etc.)
  • 30, 25, 20, 15, 10 year fixed rate loans available

FHA 203k Streamline

The FHA 203k Streamline allows borrowers to finance the purchase or refinance of an existing home and make improvements or upgrades up to $35,000. $5,000 minimum repair costs required.

FHA 203k Full

The FHA 203k Full program allows borrowers to finance the purchase or refinance of an existing home and complete major renovations, rehabilitation or improvements, including structural repairs.

How do I get an FHA loan?

Once you have decided an FHA refinance will fit you best,  contact us and speak with a Carrington loan officer. We will be happy to walk you through the application process. Call (888) 267-0584 or click here to start now.