Mortgage Loans

[CreditDrama85]

what are the requirements to refinance via FHA? doesn't the property have to be in excellent condition or something ? i think that's why i avoided this the first time around BUT i need a better rate, so i may need to go that route...

[nicemann]

No the home doesn't have to be in excellent condition but it must be in good condition and all of the major items working (ie roof, a/c, etc)

Here is a list of the FHA Loan Qualifications

You will need to have 2 years of steady employment. Not necessarily by the same employer but it is preferred.

Your income should be similar or increasing for the past 2 years.

You should have less than two 30 day periods of late payments on your credit reports.

If you have declared bankruptcy, then it must be at least 2 years old and you will have to have good credit since then.

Foreclosures will also need to be older than 3 years and have good credit since then.

Mortgage payment should be about 30% of your gross income.

[sh9730]

Think this is a REFINANCE - My understanding (not an expert) is that if you have an FHA loan now, and want to streamline refinance it (i.e. no cash out and the rate will be LOWER than what you have now) they normally dont pull credit or anything. 

I am not sure about a new appraisal though?  I dont think they do it as the idea of the streamline is to lower the risk to FHA on a loan they are already insuring, so obviously a lower rate and payment represents less risk to them so they make it very easy to do!  Again, no cash out though!

[ShanetheMortgageMan]

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CreditDrama85 wrote:

what are the requirements to refinance via FHA? doesn't the property have to be in excellent condition or something ? i think that's why i avoided this the first time around BUT i need a better rate, so i may need to go that route...

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The property does have to be in good shape - but doesn't have to be in excellent condition, just "average" (per the appraisal).  Do you think your home might not meet required standards?  If so, why not?

[CreditDrama85]

because of the gutters and the roof! i would probably need to have work done on that b4 i went FHA....also when going FHA do you apply with a prime lender like BOA or Wells Fargo and then they begin the process OR do you do something else?

Message Edited by CreditDrama85 on 04-14-2008 09:07 AM

[ShanetheMortgageMan]

What is wrong with the gutters and the roof?  Are they in disrepair?

You would apply first with a lender before ordering the appraisal or anything.