More Phoenix, Arizona borrowers are using the FHA refinance cash out mortgage to refinance their Phoenix AZ mortgage today because FHA allows you to refinance up to 85% of the appraised value of your home. That is at least 5% more than conventional refinance mortgage. By using the easy formula below, you can find out how much you can refinance:
Property value $400,000 x 85%=$340,000.
$340,000 – $100,000 loan balance=$240,000 cash out
With FHA cash out refinance, you have the flexibility to use your funds for a variety of reasons including home improvements, a vacation, medical bills, college tuition for your children, consolidating your debts even a second mortgage, or a large purchase.
Property must be owner occupied primary residence 1-4 units.
Your current mortgage does not have to be a FHA mortgage, but you must not be in default.
If you had a bankruptcy or foreclosure, you can refinance two years after the bankruptcy and three years after the foreclosure. With a conventional mortgage, you must wait three years after a bankruptcy discharge and four years after a foreclosure.
A credit score of 640 is acceptable to most Phoenix lenders. (Check with your Arizona mortgage broker)
Your monthly mortgage payment, which includes principal, interest, property taxes and property insurance (PITI) cannot exceed 31% of your monthly gross income.
Your monthly debt cannot exceed 43% of your gross monthly income (this includes all your debt, i.e. mortgage payment, credit card debt, auto loans, and other loans).
You will need to complete an application and supply copies of your last two paycheck stubs, your last two year’s income tax returns and copies of your W-2’s or 1099’s to your lender for their review. If you are self-employed, you will need to sign a release for your lender to obtain the tax returns directly from the IRS. All borrowers must sign a credit report release. Obtaining a FHA cash out refinance is simple, quick and easy.
Right now everyone can use a little extra cash. FHA cash out refinance loans make it easier for you to obtain it. With tight lending guidelines on conventional mortgages, FHA allows more borrowers to qualify for a refinance loan. That’s why Scottsdale and surrounding area Phoenix borrowers are taking advantage of competitive Arizona mortgage rates and refinancing with FHA cash out refinance loans.
If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to email@example.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
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Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST