I bought my home oct'07 100% financing Not much equity yet but high interest 8.25 could I refinance using fha? I've now paid off almost all my debt.If I have a private mortgage can I refinance it to a fha loan?
The yes and no of your first question is yes you can refince to an FHA loan.If I have a private mortgage can I refinance it to a fha loan?
Everything depends on the amount of equity compared to current value of the house. I personally doubt that in a year of a declining market you have any equity - in fact you are probably upside down.
FHA requires 3% down but a portion of that can be a gift if that helps you. Remember a lot depends on how the house assesses for current value.
Congratulations on paying off your other debts. That is excellent!
I am not picking on your personally, but you can see the old fashioned wisdom wisdom of requiring 20% down. Even in a declining market if you had put 20% down you would still be able to grab a lower rate. Now you may be effectively trapped in a loan that with more ready cash your could have escaped from.
The bright side. If you payed off your debts you can save enough money to make a refinance work - but it might take a little time.
Best wishes.
Possibly.
FHA is doing some refi's but you have to have a certain amount of equity.
Try going to their website and searching, I'm sure they have the answer there
http://www.fha.gov
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