Questions about FHA Refinance Rules
Listed below are a few questions on refinancing FHA loans.
I am based in Massachusetts and am refinancing my FHA. Since I didn’t include my husband on the refinance application, I have been asked to remove him from the title. Is this legal and can I put him back on the title later?According to FHA rules, only a titled owner can make an application for the mortgage. Therefore, the requirements for the refinancing are legal. You would need to file a “quit-claim” deed to take your husband off and then add him back later. The deed would probably cost around $125 and the recorder’s office might charge you $35 to file. But there would be no transfer taxes involved since the title is being changed between spouses.
I just completed an FHA streamline refinance where the paperwork on my house shows an exaggerated property value. Can I change the value after signing the papers?With regard to an FHA refinance, you have a 3-day rescission period to cancel the deal. You would need to execute one of the opt-out papers that are a part of the closing package. You could call your lender for more information on this. If you have already signed the papers and didn’t rescind, it means that you have officially accepted the value of the house and cannot change it.
In the process of refinancing an FHA loan, it appears that I have exceeded the levels of roofing required in my house although no roofing work was done after I moved in. Is there a chance that my loan should never have been closed based on the FHA requirements?Based on the facts of your case, it appears that your home inspection may not have disclosed your property does not conform to FHA lending guidelines. Therefore, you should not have been allowed to close on the loan since your property was not eligible for it. Although you may not get out of your mortgage now, you could sue your home inspector if he/she knew your home was being inspected for securing an FHA loan.
I am currently refinancing my FHA loan on a property that I live in. If my circumstances change for any reason during the course of the year, can I sell or rent the property within the year?When you take an FHA loan, you are allowed to sell the property at any time and pay off the loan. However, the primary reason you are taking out a loan is to live in the property and use it as your “primary residence”, so you are technically not allowed to rent it out. Having said that, many people do rent out houses with FHA loans on them. But they will not get any of the benefits offered to the borrowers who live in their properties.
The rules and regulations pertaining to FHA refinancing have been modified over time with mortgage insurance fees being cut and so on. As a borrower, keeping up to date with FHA refinancing rules is important.