Can I Refinance My FHA Mortgage With out A Credit score Examine?
Some borrowers require a lower interest rate. Some borrowers want out a variable rate mortgage. Others are interested in withdrawing the equity built up in their home. The way to do these things with an existing mortgage is to refinance the loan.
FHA home loans include refinancing options for all of the above needs, plus the option to apply for a rehab refinance loan (the FHA 203 (k) Rehabilitation Refinance) to refinance the home and get loans for approved repairs and improvements at the same time Upgrades for the home.
You can also apply for an FHA cash out refinance to redeem the equity in your home.
In most cases, a refinance loan will require a new credit check and rating – especially if you’re looking to get a payout for the transaction. But not all FHA refinancing options require a credit check.
Do you need to refinance an existing FHA mortgage to get a lower payment or interest rate? Would you like to refinance your home to get out of a variable interest loan?
If so, there is one FHA refinance loan that you should check out – FHA Streamline Refinance, sometimes called the FHA Interest Rate Reduction Refinance Loan or FHA IRRRL.
What is an FHA Streamline Refi? Basically an existing FHA mortgage refinance loan where your lender uses your original application details to approve the new loan.
There is no FHA mandated credit check on these loans (your lender may still ask for one, but has the option not to, especially if the cost of the loan does not increase your monthly payments due to mortgage surcharges.
An FHA streamline refinance also does not have an FHA required rating. Again, your lender is free to ask for one anyway, but you may find that it is not required.
No other FHA refinance loan option mentioned here offers this and you cannot use the FHA streamline refinance option on non-FHA mortgages.
All of the other FHA refinance loan options we’ve mentioned here require credit checks, appraisals, etc. And if you want to convert an FHA mortgage into a conventional loan, you will need to do a fresh appraisal and credit check even under these circumstances.
There are important things to keep in mind when refinancing your home loan. You don’t have to use the same participating FHA lender that you used on the original mortgage if you tend to shop around.
In fact, you should be looking around for a new lender just to see what other rates and terms are available to you.
Refinancing your home loan is an important step – your mortgage should be affordable and fit into your monthly budget. If you are struggling to pay your home payment every month, an FHA Streamline Refi could be the solution you need to move an existing FHA loan to a cheaper location.