FHA loans are loans that are backed by the U.S. Federal Housing Administration. They can be refinanced, just as conventional loans can be. The process is similar, but there are a few differences and a few important requirements for refinancing an FHA loan. It is important to analyze all the numbers before refinancing your FHA loan. If refinancing is right for your individual situation, it can reduce your monthly payment.
Step 1
Make all your mortgage payments on time, and repay any delinquent payments before you apply to refinance your FHA loan. According to the U.S. Department of Housing and Urban Development, you may not refinance an FHA loan if any payments are delinquent.
Step 2
Contact your current mortgage lender and let it know you are interested in refinancing your FHA loan. Not are lenders are willing to refinance FHA loans, so make sure the lender is willing to do so. Inquiring will not obligate you to refinance through that lender, but you will be able to see what terms, such as interest rate, it offers.
Step 3
Be prepared to pay some closing costs for refinancing. You may not have to, but it is important to have cash ready in case you need to bring some to closing. According to the Bills website, if you absolutely cannot pay closing costs but you want to refinance, you can ask that the lender include the closing costs in the new mortgage balance.
Step 4
Complete the application paperwork that the lender will give you, if you like the terms of your current lender's proposed refinance. Make sure everyone who is on title to the house signs all the necessary documents. If the lender approves all the information, you could refinance your FHA loan in as little as two weeks.
Step 5
Contact other lending agencies in your area if you are dissatisfied with the terms that your current lending agency has to offer for your FHA refinance. Make sure that the other lending agencies refinance FHA loans. Find out what terms they have to offer and fill out their applications if you approve of the terms.
Things You'll Need
- Copies of your bank statements
- Copies of tax returns
- Copies of your pay stubs
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