Refinance Programs
Conventional Refinance
A Conventional Refinance is a great way to drop your rate and PMI, if you’re currently paying PMI. You only need to have 20% equity in the home and at least a 640 credit score to receive this type of loan.
Pros Cons
Close Quickly 20% Down Payment
Great Rates Higher Credit Score Requirements
Basic Appraisal Higher Income Thresholds
No Monthly PMI payments
FDIC Insured Loan
FHA Refinance
This will allow you to refinance up to 97.5% of the value of the home. This is great because you can combine a previously separated 1st and 2nd mortgage into one low rate fixed mortgage. The condition is that if you wish to consolidate credit card debt or take some money out of your earned equity your max ratio is 85% of the value of the home.
Pros Cons
97.5% Loan-to-Value ratio on Refi Strict Appraisal Guidelines
Great Rates Underwriting times 3-4 weeks
FDIC Insured Loan Monthly PMI
Gift Funds Excepted Income Restrictions
620 Credit Score Requirement Lower Loan Limits
Higher Income ratios
FHA Home Improvement Refinance
This is a little more complicated type of refinance. This type of loan will allow you to take an additional 25% of your homes value to do upgrades, repairs and renovations, up to $35,000. Your contractor needs to be very thorough and specific in what they are doing. The appraisal must be done subject to, meaning that the home must appraise at or above the projected mortgage amount. This is usually a fairly smooth transaction as long as everyone stays on the same page.
Pros Cons
Getting much needed repairs, appliances, Strict Approval Guidelines
Heating and Cooling Must have Licensed General Contractor
Strict Appraisal Guidelines
High Asset Requirements
Underwriting 4-10 weeks
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Action Home Loans
