Seattle FHA Loans - How to utilize an FHA Loan to refinance - scenario 1
Here is a scenario to show why it can be beneficial to Refinance your loan or loans into a safe, secure, fixed rate FHA Loan. Let's say you live in Bellevue, Washington. Your home is worth $550K and you currently owe $430K on your first mortgage, and you have a second mortgage for $75K. You utilized the $75K to completely remodel and upgrade your home, and pay off a few debts along the way. New Kitchen, Baths, flooring, windows, etc. You have put alot of work into your home and want to stay there for a few more years. Your first mortgage is a 5/1 ARM that will adjust soon, and you are worried about the rate and payment increasing, and what that may translate to in the future. You owe 91.82% of your homes value. (91.82% LTV or Loan to Value).
It is now time to refinance the two mortgages into one fixed rate mortgage. From all the headlines, it might seem like the government has set up a nice safety net for you. Here is the bad news: Your first mortgage doesn't qualify for HARP (Home Affordable refinance program) from Fannie Mae or Freddie Mac, since it was not a Fannie or Freddie loan in the first place. The next problem is that Fannie Mae and Freddie Mac Jumbo Conforming (aka high balance, or Super Conforming) limit new loans to 90% Loan to value. But that is not the end of the problems of qualifying for a Fannie Mae High balance refinance for your loan - Fannie Mae now considers the second mortgage payoff to be a "Cash Out Refinance". even though you are not receiving cash in hand, but that is how Fannie Mae now classifies it. So now for your scenario, the max Loan to Value is 75%, the Fannie Mae Cash out refinance limit. You may think you are Stuck. What did the government do to help me? (note - Freddie Mac guidelines mimic Fannie Mae in all of these areas, so they aren't much help either).
Don't despair, this is where FHA Jumbo comes to the rescue. The FHA Jumbo (aka FHA High Balance) allows you to refinance the first and second mortgage on your home without considering this a Cash out Refinance. You might be thinking " I don't want to pay Mortgage Insurance". The choices are clear: you can do nothing with your Adjustable rate mortgage and keep paying two mortgages, or Refinance into a fixed rate FHA Loan. The FHA Loan can help you get the security of knowing your rate and payment without rate increases for years to come. **FHA also allows true cash out refinances up to 85% LTV, as in debt payoff, cash for home improvement, etc.
Call the FHA Loan pros at VanDyk Mortgage to find out if you can benefit from a FHA Refinance. No cost, no obligation, just honest information and help. Brian Skaar 760-752-4480 or visit online at http://www.vandykfunding.com/ .
VanDyk Mortgage has been making FHA loans since 1987. We are a HUD recognized Full Eagle FHA DE underwriter and FHA Direct Lender. We are also a VA Lender and VA Jumbo Lender.
Go with the Government Loan Pros, go with VanDyk. Visit us at www.vandykfunding.com or call Brian Skaar direct at 866-900-2342 for help with your FHA or VA loan. We offer FHA, FHA Jumbo, VA, VA Jumbo, Conforming & Jumbo Loans. VanDyk Mortgage offers FHA, VA, & Conventional loans in addition to FHA Jumbo, VA Jumbo, and Conforming Jumbo loans (aka FHA High Balance, VA High Balance, and Conforming High Balance).
In addition to Auburn, WA, we service the entire state of Washington, including Spokane, Spokane Valley, Mead, Newport, Liberty Lake, Newman Lake, Airway Heights, Deerpark, Seattle, Tacoma, Everett, Puyallup, Kent, Auburn, Bellevue, Federal Way, Kirkland, Redmond, Woodinville, Snohomish, Marysville, Lake Stevens, Mukilteo, Lynnwood, Montlake Terrace, Edmonds, Des Moines, Renton, Issaquah, North Bend, Monroe, Olympia, Lacey, Bremerton, Tumwater, Port Orchard, and Vancouver. In addition to Washington State, we service the entire state of California, including Redding, Sacramento, Bakersfield, Stockton, Oakland, San Francisco, Fremont, Clovis, Sunnyvale, Patterson, Modesto, Salinas, Palmdale, Lancaster, Los Angeles, Ventura, Santa Monica, San Bernardino, Riverside, Corona, Santa Ana, Orange, Irvine, Anaheim, Huntington Beach, Long Beach, Brea, Ventura, Santa Barbara, Monterey, Corona, Palm Springs, Indio, Temecula, Murrieta, San Diego, Chula Vista, Oceanside, Escondido, Vista, La Mesa, Santee, Santa Maria, Santa Clarita, San Clemente, Laguna, Aliso Viejo, Mission viejo, Rancho, Santa Margarita, Rancho Cucamonga, and more.
VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Mortgages of all types. As a Government Direct Lender, VanDyk Mortgage is also a HUD Full Eagle FHA Direct Endorsement Underwriter, ie FHA Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA High Balance, and FHA mortgages of all types. Visit us at www.vandykfunding.com to get started or just find out more
