FHA Loan

(insured by the Federal Housing Administration)

FHA loans cannot exceed the statutory loan limit, which can be found here: FHA LOAN LIMITS. The maximum Loan to Value Ratio for an FHA refinance is 97.75% if you are just refinancing the mortgage or 85% if you are getting cash out, and is subject to both an Up Front Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP) which is paid monthly. The UFMIP is paid once and is generally financed by adding it to the loan amount. MIP is similar to PMI, as it is paid monthly. Credit requirements for an FHA loan are less stringent than requirements for a Conforming Loan.

An FHA Streamline Refinance allows a homeowner who currently has an FHA mortgage to refinance into a new FHA mortgage with reduced documentation requirements. There is no appraisal required, and in most instances no income documentation.