The Federal Housing Administration (FHA) insures these products and may have an easier qualification process due to less stringent down-payment and credit requirements than conventional mortgages.
There are a number of ways to go about an FHA refinance. FHA homeowners can utilize any of the following options:
- FHA Streamline refinance - This type of refinance is designed to lower your interest rate and, subsequently, your monthly payment. It’s called a “Streamline” because it’s a fast, efficient process designed to save time and money.
- FHA Cash-Out refinance - This allows you to turn home equity into cash, which you can then use to consolidate debt or help cover other expenses you may be facing.
- 203(k) refinance - The 203(k) refinance is also called a “rehabilitation” loan. It’s ideal for buyers looking to renovate or rehabilitate a property.