Have Negative Equity and an FHA loan? You Can Refinance! December 16, 2008

This is one of the those little known facts that makes perfect sense when you think about it.   The other day I wrote THIS POST about FHA Streamline refinances.  If you have a current FHA loan and the payments have been on time, you can refi with little to no documentation and fees.  Well, if you don’t need an appraisal, it doesn’t matter what the appraised value is!

If you have an FHA ARM or higher rate but have been worried that you can’t refinance because of your equity position, you don’t need to worry.  I’ve found that many people want to keep their house, even if you are a little upside down, and this might be a great tool to help make your payment a little more affordable, being that 30 year fixed rate FHA interest rates are at historic lows. 

While this is of little comfort to those with subprime or conventional ARM’s with negative equity.  If you are in that position, there are loan programs from the State of Maryland, like the Lifeline and Homesaver that may be able to help.   I happen to work for a bank that is signed up with this program, and would love to help you find a way to refinance.  If you are not in Maryland, check out the website of your state’s local housing authority, as many states have similar programs.