Conventional to FHA Refinance
It is much more common to see people refinance from FHA to conventional, however, there are certain situations that provide advantages for consumers to switch from a conventional loan to a FHA mortgage. One commonly utilized advantage of switching from a conventional to FHA loan is to take cash out. The FHA cash out refinance has a higher allowable loan-to-value ratio than conventional cash out loans offer.
What are some other reasons to refinance for a conventional loan to a FHA loan?
Oftentimes, homeowners will be in a conventional loan from the original home purchase, or from their most recent refinance, and they no longer will qualify to refinance into a new conventional loan. This could be the result of now having lower credit scores, or other conventional loan requirements which they can not meet now.
There are also certain circumstances which will allow for a borrower to qualify for a lower rate and monthly payment through an FHA loan versus a conventional loan. What makes most financial sense is to learn about and compare all of your refinancing options and see how you can save the most money. Our home loan specialists will patiently and thoroughly take the time to help you determine what loan type is best for you and your family. Submit your information for a pre-approval, or a phone call from a mortgage representative.