Ok, so we are refinancing our house to get a lower rate, combine the 1st and 2nd loans, and pull a little cash out. Our personal bank has approved us for a refinance with an FHA loan. I got the paperwork today and do not understand a thing...they want like all sorts of documention and they want me to pay off old debts before I close. This seems like a huge hassle to me. Can anyone explain the pros and cons of an FHA loan? I remember hearing bad things about them...
Help with mortgage refinance?
Here are a few pros of FHA loans:
FHA loans are designed to make housing more affordable, particularly for first-time homebuyers. FHA loans typically permit borrowers to buy a home with a lower down payment than conventional loans.
The Cons:
You are experiencing them now. Lots of paperwork, rules and oversight.
Since you are already in process, the responsibility for walking you through the loan is on your current bank. Make sure you understand EVERYTHING before you sign anything. Ask questions. If you don't understand the answers, keep asking.
And make sure you are getting the best deal possible before you close the deal. After, it may be too late.
Help with mortgage refinance?
FHA rules are a lot different than the conforming market. I can walk you through it if you want. email me and I can tell you. hiltoncompanies@aol.com, in the biz, cut through the red tape. Best, Glen.
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