FHA Short Refinance

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Are you current on your mortgage but owe more than your home is worth? FHA Short Refinance could be a viable option for you and your mortgage servicer.

The purpose of FHA Short Refinance is simple: allow hardworking homeowners to refinance into FHA-insured mortgages that are sustainable and affordable.

When your current lender consents to refinance, you will have the amount owed on your first mortgage readjusted at or less than 97.75% of your current home value.

Do you qualify for a refinance? You may if you meet the following requirements:

  • You are current on your mortgage
  • You owe more than your home’s current value
  • You live in the house as your primary residence
  • Your mortgage is not guaranteed or owned by Fannie Mae Freddie Mac, the FHA, VA or USDA
  • You meet the standard FHA underwriting requirements for a new loan
  • Your debt is no greater than 55% of your monthly gross income
  • You have not, in the past ten years, been convicted of a felony, larceny, theft, fraud or forgery, tax evasion or money laundering in a real estate-related transaction.

Talk to your mortgage servicer to find out if you’re eligible for FHA Short Refinance and FHA2LP. Program participation is at the discretion of the servicer.

To learn more about FHA Short Refinance, call the FHA National Servicing Center at (877) 622-8525, or visit online at  HUD.gov/offices/hsg/sfh/nsc/nschome.cfm

For any additional mortgage consultation, contact a HUD-approved housing counselor at (888) 995-HOPE (4673). This counseling service is free and available 24 hours, and can help you to come up with a plan that best fits your personal needs and puts you on the right track to becoming a successful homeowner.

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