FHA Cash Out Refinance Florida
As a homeowner, do you require some extra cash for home improvements, debt consolidation, or unexpected expenses? Consider an FHA cash out refinance.
Here’s what you need to know:
What is an FHA Cash-Out Refinance?
An FHA cash out refinance is a mortgage refinance where you borrow more than your current loan balance and receive the difference in cash.
This cash can be used for any purpose, such as home improvements, paying off high-interest debt, or covering unexpected expenses, having cash reserves, pay for college tuition, going through a divorce, big purchases, etc.
Benefits
FHA cash out refinance lets you use home equity, has lower interest rates, and less strict credit requirements than conventional loans.
Requirements
In order to be eligible for an FHA cash out refinance, there are certain requirements that must be met.
These requirements include owning your home for at least 12 months, having a minimum credit score of 500, a debt-to-income ratio that does not exceed 56%, and a maximum loan-to-value ratio of 80%.
To calculate your loan-to-value ratio, divide your new loan amount by your home’s appraised value. An 80% ratio means you’re borrowing $160,000 on a $200,000 home.
How to Apply for an FHA Cash Out Refinance Florida
Contact us to see if you qualify. Provide income proof, employment verification and we’ll verify the credit score is above 500. If approved, receive cash from the difference between your new loan and current mortgage balance in less than 30 days.
Use it for whatever you need. An FHA loan can be a great option with lower rates and easier credit requirements.
