A short sale in real estate term is when a borrower sells their home for a lower price than what is currently owed on the mortgage. In this event, the lender agrees to allow the home to be sold for less than the amount owed on the debt by the current homeowner. This is what is known as a “short sale.”
Many home buyers and real estate investors come across these properties when they are searching for homes. It is important to understand how the short sale process works and what to expect if you plan to make an offer on one of these homes. In addition you need to understand that you will not be dealing with a seller when you make an offer. It is the mortgage servicer that is servicing the loan who will be in control of the sales price and the property during this process. (more…)
Homeowners with an existing Federal Housing Administration (FHA) loan may qualify for a special refinance program known as the FHA Streamline Refinance. An FHA Streamline Refinance requires little documentation and is one of the quickest and most painless ways of giving FHA-insured homeowners the ability to refinance.
One major benefit for FHA borrowers in today’s housing market is the fact that the Streamline Refinance does not require an appraisal, saving you both time and money. Instead of requiring an appraisal to determine the current market value, FHA allows the original purchase price to be used for the lender’s valuation, regardless of how far underwater you may be in today’s market. Even if you owe three times how much your property is worth you still can qualify. (more…)
The maximum loan limits for Federal Housing Administration (FHA) backed loans is currently at $625,500 (1-unit homes) in high-cost areas, which is the same as it was in 2014. Loan limits in designated areas are higher for multi-unit properties, and the popular FHA Streamline Refinance will keep its cap at $729,750. (more…)
There are definitely options in the market that are available for you to refinance your mortgage without equity in your home. But your success will depend on several factors such as your credit score, neighborhood values, type of loan and your finance, employment and product eligibility.
For example, if your home is underwater you may be able to refinance with the U.S. government’s Home Affordable Refinance Program (HARP). This program allows eligible homeowners who are current on their home loans to refinance under HARP if their mortgages are held by Fannie Mae and Freddie Mac. You can benefit from having either a “No Cost” or you can also add costs to the balance of your loan and have the refinance done with no funds needed from you as the borrower. (more…)
If you’re looking for the most affordable rate, understand that your mortgage rate will depend on factors like your credit, down payment, home equity, past late mortgage payments, first mortgage balance, first mortgage interest rate, existing type of rate, do you have a second mortgage, and more. (more…)
Many borrowers think that they can refinance their home as often as they would like, but the facts are that this is far from the truth. Many lenders have seasoning requirements that state that borrowers cannot refinance without various penalties within a 1-3 year time frame, and other terms that may prohibit homeowners from refinancing more than once in a single year. (more…)