But that's not all; the FHA loan rules state that the borrower must have a minimum of six months of payments on the original mortgage. So, we can see that for FHA cash-out refinance loans, the minimum wait time is 180 days, but it depends on payments being made on time. Allowed a minimum of 210 days after closing. If you have a mortgage backed by the Federal Housing Administration, commonly known as an FHA loan, with timely payments of at least six months, you can apply for a simplified refinance from an FHA-approved lender on the sixth anniversary of your first payment, or seven months (210 days) after closing the original loan.
Simplified FHA refinance loans are subject to closing charges and costs comparable to those charged on FHA loans, but have less stringent requirements regarding proof of income and other financial documentation. If you have an FHA loan and want to refinance it into another FHA loan without getting an appraisal, you may be looking for a simplified FHA refinance. A simplified FHA refinance is a faster way to refinance from one FHA loan to another, with less paperwork, because it doesn't require an appraisal. You must have had the mortgage for at least 210 days and have made at least six monthly payments.
Payments for the last six months must have been made on time and you can have a maximum of one late payment (30 or more days late) in the previous six months. VA loans also offer refinancing optimized to lower interest rates, known as a VA Reduced Interest Rate Refinancing Loan (IRRRL), with the same waiting period of seven months (210 days) or after six months of consecutive payments. To refinance a mortgage backed by the Department of Veterans Affairs on a VA loan, you must wait at least 210 days or long enough to have made six payments, whichever lasts longer. Most people refinance with conventional loans to eliminate the annual mortgage insurance payment requirement or to increase the amount they can borrow against their capital.
If you use an FHA-optimized refinance option, a common FHA-to-FHA refinance option, you won't have to go through a credit or income check or pay a new appraisal. How quickly you can refinance a mortgage depends on the type of mortgage loan you have and the type of refinancing mortgage you are receiving. But while the amounts may be higher than conventional loans, Zomick explains that “jumbo loans are like conventional loans in the sense that you can refinance whenever you want, and the restrictions are usually lender specific. This is one of the most common refinancing options when it comes to FHA loans for those trying to avoid mortgage insurance altogether.
When refinancing with an FHA Streamline, you will receive a refinance credit for your old IPM payment for your new initial IPM payment. If removing MIPs from your monthly mortgage payment seems like a plan, you may want to change your current FHA mortgage to a conventional mortgage. The FHA Simplified Refinance Program is designed for FHA borrowers who are interested in refinancing another FHA loan. Simple refinances can be a good option to pay off an existing adjustable-rate mortgage loan (ARM), lower your interest rate, or switch between fixed-rate and adjustable-rate loans.
With some conventional loans, you can refinance at any time, while some government-backed loans will require a year's repayment. Refinancing an FHA loan to a conventional loan can save you money by lowering your interest rate and eliminating the monthly mortgage insurance premiums associated with your current FHA loan. The FHA simplified refinance option does not require an appraisal and may not even need an additional credit or income check. .