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CAN I REFINANCE FROM A CONVENTIONAL LOAN TO A FHA LOAN?

CAN I REFINANCE FROM A CONVENTIONAL LOAN TO A FHA LOAN? by kelley_565_367 from Atlanta, Georgia. Jun 1st 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Yes.. FHA rate and term refinance will go 97.75% Loan to value, and an FHA cash out refinance will go 85% LTV. With FHA they will charge you 1.75% of your loan as an upfront mortgage insurance premium, which can be financed, and 1.25% annual mortgage insurance. So if you're not paying mortgage insurance now, you're better off staying with conventional and refinancing under the HARP program. Even if you are paying mortgage insurance, it will still be more beneficial to stay with conventional.. you should contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders, and have them run you several loan scenarios for comparison...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 1st 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

I do a lot of loans in GA.. Please email me at yourloanpartnerforlife@live.com , your reasons for wanting to go to FHA.. OR you may contact at 602-330-1598 I have been a underwriter, so I will be able to guide you correctly... thanks linda

Jun 1st 2012
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Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions

Yes, but make sure it's the best loan for you. Generally, if you're refinancing from Conventional to FHA, then it's likely a credit or equity problem. But, the equity problem is probably more easily overcome with one of the HARP 2 refinance products these days; that assumes that when you say conventional, you mean it's owned by Fannie Mae or Freddie Mac. A local mortgage broker in Atlanta can point you in the right direction and give you the advice you need.

Jun 1st 2012
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Scott McPherson (ScottMcPherson)
#560 ranked lender in California - 25 contributions

Yes, you can refi from conventional to FHA but I would do this as a last resort. FHA mortgage insurance premiums have just increased and you will definitely pay a premium for FHA compared to Conventional loans with mortgage insurance. If your credit is suffering or you need a non occupant co borrower to qualify then FHA may be the best option but otherwise I would look to a conventional loan.

Jun 1st 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,137 contributions

Larry is right. The quick answer is yes, but the real answer is why, and is doing so in your best interest. Contact a local Mortgage Banker/Broker, rather than one of the big banks or national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination and will look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Jun 3rd 2012
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