FHA LOANS

FHA Home Loans for Purchase or Refinancing

The FHA (Federal Housing Administration) loans are not made directly by FHA.  They are loans that are insured and guaranteed in case of a default to the lender who is issuing the loan. 

An FHA loan can be for a purchase or refinance of a property.  These loans are appealing to first time buyers or individuals who have small down payments.  The qualifications are easier than most conventional loans because they allow lower credit scores and are more flexible with income requirements.

FHA loans have a variety of loan programs.  They have fixed or adjustable interest rate loans.

Refinancing an FHA Loan

Refinancing an FHA loan with Legacy Financial Services in Orange County is an option that is available to someone who has little equity in their property.  It can be done as a rate and term loan.

If the interest rate is lower than the current balance of the mortgage and will save you money, an FHA refinance may make sense to do.  You would have to go through the whole loan process and have an appraisal done.

When you make an appointment with one of Legacy Financial Services loan advisors, a complete mortgage analysis will be done on your current mortgage and credit requirements to make sure you can qualify for an FHA refinance.       

Get Cash-out with an FHA refinance?

To get cash-out from an FHA loan there must be enough equity in the property to do this.  FHA will require 85% loan to value (LTV) to get cash out. 

Because the qualifications are more lenient with an FHA loan than a conventional loan, a cash-out FHA refinance may be a good solution since you would get more cash.

FHA Streamline Refinance Loans

The beauty of an FHA streamline refinance in California and other states is that there is very little qualification that has to be done.

When doing an FHA streamline, the loan must already be insured by FHA.  The loan must be current and not be delinquent.  There is no cash that can be taken out with the streamline.

Interest rates must be lower than the current FHA rate on your mortgage, and be proven that it will benefit you.

In most circumstances there is no appraisal necessary.  A loan application and verification of your income needs to be provided. 

The process can go quickly when doing an FHA streamline. A qualified FHA streamline loan specialist at Legacy Financial Services can help you with the paperwork to get started.