Yes, you can! If the property in question is your primary residence, you can utilize an FHA cash out refinance in order to retrieve the equity from your home. As long as you are 2 years away from a major credit event (i.e. BK, foreclosure, notice of default), this is an option that can help benefit your specific financial situation.
What qualifications do I need to qualify for an FHA Cash Out?
In order to qualify for FHA cash out refinancing, an individual is required to have a minimum credit score of 500 and have a record of on time payments for the last year. An individual must also have no more than 30 day lates in the last two years. Solid income is required but higher debt ratios are permitted as well for this type of assistance.
What are the benefits?
Typically, an individual can pull cash out up to 80% of the home value with this type of assistance, allowing them the freedom to solve financial issues even despite low credit scores. However, the higher the credit score and lower the loan to value, the better pricing will be. This type of financing is a great way to pay off debt, upgrade or expand the home, and create extra cash reserves.
Still having questions about an FHA Refinance?
If you would like to assess your financial situation and see if an FHA cash out refinance would be the best solution for you, please contact Adequate Mortgage Services with all your further questions. Be advised, county loan limits do apply so call us today or submit a quick quote to review your scenario and see if you can take advantage of current low rates.