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When is FHA or conventional refinancing
a good option?

For some Veterans, FHA or conventional refinancing may be the answer.
We’ll help you sort it out.

ADVANTAGES OF AN FHA REFINANCE

Learn why some military borrowers choose this loan program over others.

DIFFERENCES BETWEEN
VA and FHA LOANS

While both are government-backed loan programs, the two have key differences.

FREQUENTLY ASKED
QUESTIONS

See some of our customers' most frequently asked questions.

How Do I Know if FHA or Conventional is Right for Me?
How Do I Know if FHA or Conventional is Right for Me?

Your unique circumstances will determine which loan program is right for you. If you’ve earned home loan benefits through military service, and you have enough entitlement to back the loan amount you’re looking for, we almost always recommend the VA route. However, there are definitely some reasons for going with FHA or Conventional loans. Choosing your loan isn’t the kind of thing we’d expect you to do on your own.  Your personal loan advisor can help you crunch the numbers and figure out which program is most cost effective for you.

How are FHA and VA Refinance Loans Different?
How are FHA and VA Refinance Loans Different?

Both programs have relaxed qualifying standards, competitive interest rates, and a streamline refinancing option. Neither has a prepayment penalty. Both VA and FHA loan programs have owner occupancy requirements. Here are some features each program typically has that set them apart.


VA Loans

  • Available only to eligible Veterans, service members and surviving spouses
  • Refinance up to 100% of the home's value
  • No private mortgage insurance
  • VA funding fee can be paid upfront or rolled into the loan (some exempt)

FHA Loans

  • Available to US Citizens 18 and over
  • Refinance up to 96.5% of home's value (85% for cash out)
  • Upfront mortgage insurance premium which can be rolled into the loan
  • Monthly mortgage insurance payments

Top FHA Refinance FAQs

Q: What is MIP and UFMIP? 

A: Unique to FHA is the type of mortgage insurance required. FHA loans require FHA mortgage insurance. A Mortgage Insurance Premium (MIP) is added to your loan payment each month. The amount can vary depending on the loan amount, your loan term and LTV. You can expect to pay this premium for at least 11 years, or longer. An Upfront Mortgage Insurance Premium (UFMIP) is paid, well, upfront. The rate is 1.75% of the loan amount, except for Streamlines.  

 

Q: What Rate Can I Get with an FHA Refinance?

A: You can expect interest rates for FHA loans to be competitive with the national average for Conventional loans.  

 

Q: How Hard is it to Get Approved?

A: FHA qualifying is fairly straightforward. Because these loans are FHA insured, approved lenders have the backing they need to offer more attractive features to borrowers. Less complicated qualifying and high LTVs payments are just some of these benefits. So many borrowers find these loans to be more attainable than Conventional.  

 

Q: How Much Will an FHA Mortgage Cost?

Like most mortgages, there are some costs involved with FHA loans. The program only allows certain costs and in some cases you can roll them into your loan. But keep in mind that most FHA loans require MIP and UFMIP when comparing costs.

Get a quote

Whether you're ready to apply now, or simply looking to explore your options, this is the easiest way to get started. Our experienced lending professionals stand ready to listen and respond, with no obligation.

Call us at 800-217-1596
or submit the simple form below.

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