An FHA Short Refinance is designed for people who owe more than their home is worth.

There are three main options which are determined by the process of negotiating with your current mortgage lender:

1. FHA Secure Refinance - This is typically the case when the borrower has two separate mortgages that total more than the home is worth. For an FHA Secure Refinance, the new lender will allow the second to remain as a subordinated lien.

2. Short Refinance - This is also considered a Mortgage Write Down where the current lender holding the note allows for a payoff which is less than the total amount owed. There is a process of negotiating with the current lender to allow this transaction to take place.

3. FHA Secure Short Refinance - There are some special occasions where the current note holder will allow write off a certain amount of the balance due and arrange for an unsecured loan to be paid separately by the borrower. The benefit with this example would be to obtain a very low interest rate on the remaining balance that was not wrapped up into the new mortgage payment.

All three of these options may require the help of a mortgage professional that has had experience negotiating FHA Short Refinances with banks.

In most instances, the borrower does not have to pay for any fees at the time of application and can wrap the typical closing costs into the new mortgage.

Written by Mark Madsen, a Las Vegas Loan Officer - Please contact our office for more information about Las Vegas home loans.  702-432-5626

Tags: FHA secure, FHA Short Refinance, Las Vegas Mortgage, mark madsen

This entry was posted on Wednesday, September 24th, 2008 at 3:19 pm and is filed under FHA Short Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.