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FHA to Conventional Refi

Is this a good option for a refinance or should I just go with a streamline FHA refinance? My credit score is 650+ by JBrown_679_663 from Columbus, Ohio. Sep 5th 2012 Reply


Barb Lanis (BarbLanis)
#71 ranked lender in Illinois - 663 contributions

If you suspect that you may be underwater, then your best and only option would be FHA Streamline since there is no appraisal. If you are not underwater and you have 20%+ equity, then do a Conventional. Less that 20% equity will likely be a problem because PMI companies won't do a score of 650.

Sep 5th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Perhaps. It depends on your particulars. If your Loan-to-Value (LTV) is below 80%, then yes, moving to conventional may make sense. IF your LTV is higher, then doing a streamline may be a better (lower cost) option. IF you are upside down, FHA streamline is your only option. Also, If your FHA loan was endorsed by HUD on or before May 31, 2009, you are likely eligible for FHA's enhanced Streamline. More details will give you a better answer. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Sep 5th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Too much info is missing to properly answer your question.. For example.. What is your property worth, and what do you owe?? is there equity?? if so, how much?? Greater than 20%?.. If you have less than 20% equity, and you go conventional, you will pay a higher rate and mortgage insurance.. But conventional does not charge an upfront fee compared to FHA which is 1.75% of your loan amount.. If you have negative equity, and you have a low score, you're better off with FHA.. if your loan was initiated prior to May 2009, then you will only pay .55% annual premium divided by 12 months, and only .010% upfront.. ($10 for a $100K loan). If you want to know for sure, then the best advice I can give you is to apply with a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...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

Sep 5th 2012
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Tim Bradford (Tim Bradford)
#6 ranked lender in Ohio - 145 contributions

JBrown, With your Credit scores, I would say that FHA is the direction for you to go.

Sep 5th 2012
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Daniel Hennek (danielhennek)
#73 ranked lender in Illinois - 23 contributions

the answer to that question depends on how much equity you have in the property. if you have more equity then you maybe able to refinance with a lower mortgage insurance rate on a conventional loan. the interest rate that you will get on an FHA loan maybe better, but the mortgage insurance may be the difference maker in determining whether or not 1 loan is better over the other

Sep 5th 2012
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Gary H (Mod.Specialist)
#71 ranked lender in New York - 25 contributions

Doing a streamline refinance, staying with the same leader is possibly the best option. Your existing bank has your loan now, with a streamline there is $0.00 in closing costs. Right now people with Fanny Mae and Freddy Mac are getting rates in the mid 3% range. Going to another bank your going to have closing costs, that get added to the principle.. Any savings due to a possible lower rate, is taken away because the loan is larger.

Sep 5th 2012
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Kofi Akpabla (KofiAkpabla)
#21 ranked lender in Connecticut - 37 contributions

It depends on your loan to value and debt to income ratio.

Sep 5th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

It depends on a number of factors. Get together with a local lender. They will be able to give you options. Best Of Luck!

Sep 5th 2012
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Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions

Based on info provided, FHA is the way to go. With a 650 score, your rate will be alot higher on a Conv. loan.

Sep 5th 2012
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william smith (wsmith)
#28 ranked lender in Ohio - 3 contributions

Shoot me an e-mail at whsmith@stonegatemtg.comI am in Columbus and would be gla dto talk with you about your situation.Thanks,William

Sep 5th 2012
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DeAngelo Alston (loansalston)
#4 ranked lender in Maine - 1 contribution

your best and only option would be FHA Streamline since there is no appraisal. If you are not underwater and you have 20%+ equity, then do a Conventional. Less that 20% equity will likely be a problem because PMI companies won't do a score of 650.

Sep 5th 2012
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Jeremy Redlinger (JeremyR)
#30 ranked lender in Minnesota - 191 contributions

There are a lot of factors to consider when refinancing your home. If your home lost value and you have an FHA mortgage, then a streamline will likely be your best bet. However, if you have equity in your home, FHA requires you to have mortgage insurance for up to 5 years compared to conventional which does not require mortgage insurance if your loan to value is under 80 percent.

Sep 5th 2012
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