users have rated our services

How Do I Calculate the Loan Amount for a California FHA Short Refinance?

How to Calculate FHA Mortgage and Interest Rates in California

As one of the premier mortgage companies in California we are often asked questions related to FHA and refinancing. While those in the mortgage industry understand all the language and terminology most common Americans do not know how to calculate a combined Loan to Value ratio. Rather than trying to figure this out yourself we strongly suggest you contact us at 866-260-2253. We have mortgage professionals that can help you get into the lowest possible mortgage interest rate for your current financial situation.

If you want to know how to calculate the loan amount of a California FHA short refinance please use the documentation below:

The refinanced FHA-insured first mortgage must have a Loan-to-Value (LTV) ratio of no more than 97.75 percent and any new or re-subordinated mortgages must not result in a Combined Loan-to-Value (CLTV) ratio greater than 115 percent.

  • New or re-subordinated secondary financing that permits the borrower to comply with the eligibility requirements of the program is permitted, subject to the following limitations:
  • the terms of the subordinate lien(s) must not provide for a balloon payment before 10 years, unless the property is sold or refinanced;
  • the terms must permit prepayment by the borrower, without penalty, after giving 30 days advance notice; periodic payments, if any, must be collected monthly; and
  • if payments on subordinate financing are required, they must be included in the qualifying ratios unless payments are deferred until at least 36 months after disbursement.

If this is confusing do not fret. Most California homeowners are unable to determine if they qualify for an FHA short refinance. Do not hesitate to contact us as we can help you determine the correct mortgage product for your current financial situation. We will be open and honest with our assessment of your money situation. We will also do our best to get you the lowest possible monthly mortgage payments.

By | 2017-07-11T02:23:13+00:00 July 22nd, 2017|FHA|Comments Off on How Do I Calculate the Loan Amount for a California FHA Short Refinance?
Call Now Button