FHA continues to offer a 30 year fixed FHA refinance rate loan program designed to help “underwater” homeowners who owe more on their loan balance than the property is worth. The program was created to give homeowners a better opportunity to remain in their homes. It is better known as the FHA Short Refinance Program with Negative Equity which has been extended thru December 2016. To qualify and review the guidelines for this loan, please click the link below.
The purpose of the loan was written to help the homeowner by eliminating 10% of their original first lien debt and eliminate the second lien altogether. In addition, the program increased the debt to income ratios on a manually written loan. This would give the borrower a chance to qualify for a 30 year fixed FHA refinance rate provided the lender/investor wrote off the unpaid principal balance of the original first lien mortgage by at least 10% and extinguished the second lien.
To learn more about the 30 year fixed FHA Refinance Program, please follow this link: