An FHA loan is a mortgage loan that is underwritten according to the rules set forth by the Department of Housing and Urban Development and Congress for FHA lending. The FHA loan programs are a government created program that really works, and has been working since 1934! There are some hard rules that are not under the lender’s control, but the critical decisions to approve our FHA refinances loans are made by MisterRefi.com.

MisterRefi.com is an Unsupervised FHA Direct Endorsement Lender, which gives MisterRefi.com the authority to make independent lending decisions in house, according to our application of the FHA lending principles and guidelines, using our decades of collective experience and logical, common sense, paternal understanding and analysis of each consumer’s unique story and circumstances. FHA mortgage loans have a few limits imposed by the program guidelines and statutes, but the most important part of the process – the approval of the FHA refinance mortgage – is analyzed and granted according to the way in which MisterRefi.com believes that FHA refinance mortgage loans should be looked at.

For a mortgage refinance to qualify as an FHA loan, the amount of the new FHA refinance must be within the loan amount limits the FHA mortgage loans must be equal to or less than for each county in each state. These FHA mortgage loan limits apply to both FHA refinance loans and to FHA mortgages used to purchase a home. The FHA mortgage loan amount ceilings are set by multiplying the conventional conforming loan limits of FNMA and FHLMC by 87%. The FHA mortgage loan programs do have certain statutory limits, such as maximum loan amounts for each county within a state, based the median home price and income levels of the MSA contained therein. For single family homes, the lower priced areas have loan limits that start at $200,160 to a high of $362,790. Two family limits range from $256,248 to a high of $464,449. Three family limits range from $309,744 to $561,411. Four family limits range from $384,936 to $697,696.

An FHA loan can be used to refinance any type of mortgage loan that a consumer currently has. There is no requirement that an FHA mortgage refinance must be paying off an existing FHA loan. The FHA mortgage program does place limits on the percentage of a homes appraised value that can be used to calculate the mortgage amount for an FHA refinance mortgage. The percentage of the appraised value of a home that will be financed is called loan to value. For FHA refinance mortgages that are just changing the term or rate of an existing mortgage, and not increasing the mortgage amount to consolidate debt or give cash to the borrower, the maximum loan to value ratio allowed is 97%. For an FHA mortgage loan refinance transaction that is increasing the amount owed on the home to allow the borrowers to consolidate date and/or the cash equity from their home, the FHA refinance is limited to 85% loan to value. For single family homes owned for at least one year where the borrower has not been late on their mortgage(s), FHA refinance mortgage loans allow the homeowner to use up to 95% of the appraised value of the home to set the maximum mortgage amount, as long as the FHA mortgage limit for the area has not been exceeded.

MisterRefi.com is an FHA mortgage lending expert! FHA loan refinances can be closed quickly with the expert staff of FHA mortgage loan underwriters that MisterRefi.com has on our team. MisterRefi.com has unique ways that we apply the FHA mortgage program to our mortgage refinance consumers. We use our underwriters and management team’s collective experience of more than 100 years working with FHA mortgage loans to deliver maximum value and benefit to every FHA loan refinance consumer and every FHA refinance transaction. It should be noted that FHA refinance mortgage loans offered by MisterRefi.com carry NO prepayment penalties and provide the security of a 30 year fixed rate term.

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