Debt Consolidation

Custom Search

Debt Consolidation
Debt Relief
Debt Consolidation Loan
Got Debt -
Why an Alternative
Student loan consolidation:
Being Informed About
Consolidation loans for
Debt consolidation loans
Unsecured consolidation loans:
Credit Card Debt
Why You May
Student Loan Consolidation,
Debt Stress, The
Loans for bad
Avoid the Trap
Debt Management Brings
Term Life Insurance:
Debt relief 101:
Debt consolidation home
Correcting Your Debt
Debt - Strategically
15 Ways Average
Debt Consolidation or
Debt Consolidation 101
Guide to free
Guide to online
Debt Handling Solutions
Consolidation Loan Student
Get Out Of
Student Loan Debt
How to Avoid
Debt Consolidation Loans
Debt Collection--Tips for
Debt Management Plans
Consolidate, Before It's
How To Find
Debt Consolidation
Debt Relief
FHA Mortgage Loan versus Conventional Mortgage Refinance for Debt Consolidation
by Maria Ny
The term conventional loan includes loans under the current lending limits set by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Fannie Mae and Freddie Mac, respectively.

The term conventional loan includes loans under the current lending limits set by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Fannie Mae and Freddie Mac, respectively. A Federal Housing Administration (FHA) loan is a loan based on an insurance program that enables you to buy a home with a down payment of as low as 3%. FHA is administered by Housing and Urban Development (HUD). It is one of two government loan programs available to borrowers. The other is a Veterans Administration (VA) loan, available only to veterans of the military service.

The FHA loan program, similar to conventional loan programs, allows for mortgage refinancing of owner occupied properties as fixed mortgage rate loans and adjustable rate mortgages (ARMs). Similar to conventional refinances, FHA refinances can be used for such purposes as:

• Home Improvements and Renovations.

• Debt Consolidation, including consolidating a home equity loan (second mortgage), if 2nd loan is less than 1 year old.

• Large Purchases.

• Schooling.

• Vacation.

• Investment(s), including second home or vacation home purchase.

According to the FHA, 1-2 unit primary residences may cash-out up to 95% of the estimated property value. For other property type the maximum cash-out is 85%. This is at least 5% more than on a conventional refinance loan. And, you do not have to have an existing FHA loan in order to get FHA refinancing.

While FHA loans are funded by financial institutions such as mortgage centers or banks like conventional loans, it does not actually lend money but rather guarantees a loan in case of borrower default. As a result, there is less financial risk to the lender, allowing them to offer lower rates to borrowers than rates offered by conventional refinancing. And, FHA has the most forgiving credit criteriaFICO scores of 580 (east coast), 560 (Midwest) and 520 (west coast) being considered acceptable.

Similar to conventional loans, FHA mortgages require mortgage insurance. Conventional loan mortgage insurance is cancelable under most circumstances once you build at least 20% equity in your home. The FHA states that, in most cases, FHA insurance will drop off after five years or when the remaining balance on the loan is 78 percent of the value of the property, whichever is longer.

Maria Ny, is published author who has produced real estate articles. To learn more about home equity and refinance mortgages check out Bad Credit Mortgage Refinancing & Equity Loans Online.

You can learn more about debt consolidation loans for first time homebuyers & get specific loan program parameters. Get a free loan quote for a Mortgage Refinance Loans with All Types of Credit that can help you consolidate your bills into one payment. Consider a second mortgage to get cash out of your home.

Article Source:

The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Sardis city (pt.) Broadway town Balance of Niles township Fayette Township 4 Royal Hagerstown Nescopeck borough Leverett town Burnsville Gerty town Riverview town Bristol town Independence County Johnson township Chugwater town Bush township Platteville town Glen Dale Windsor borough Milton UT Balance of Little Mackinaw township Wilkeson town Balance of Westmoreland County Manlius village Hettinger Fillmore Castle township Claude Brocton village USA UK Australia Canada Greenland Libya Kenya Kingman Reef Canada Central African Republic Nigeria Tonga Malawi Australia Herefordshire Merioneth Londonderry Ayrshire Shetland Hertfordshire Antrim Nottinghamshire Orkney Huntingdonshire North Dakota (ND) Vermont (VT) Oregon (OR) Kentucky (KY) Ohio (OH) Colorado (CO) Vermont (VT) Illinois (IL) Alaska (AK) Kentucky (KY) Texas (TX) Oklahoma (OK) Pennsylvania (PA) Missouri (MO) Connecticut (CT) Alaska (AK) Hawaii (HI)