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St Julien Home Loans

FHA Short Refinances

Friday, August 20, 2010 - Article by: St Julien Home Loans - Message

What do you do when you owe more than your house is worth? Here is how to take advantage of the currently great rates!

FHA has a program for "short refinances" the perameters are below.

- Minimum 620 FICO

- The existing lien holder agrees to lower the payoff allowing your borrower to refi into a new FHA rate/term refinance

- Non cash-out (rate and term) refinance transactions with short payoffs only

- FHA will insure the first mortgage where the existing note holder(s) write off the amount of the indebtedness that cannot be refinanced into the new FHA insured mortgage if there is insufficient equity in the home based on its current appraised value, and/or the borrower has experienced a reduction in income and does not have the capacity to repay the existing indebtedness against the property

To be eligible for refinancing with a short pay off, borrowers must be current on their mortgage.

Call me, I can help!



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