Mortgage Refinancing

Simplify Your Mortgage Refinancing with Allied First Bank of The Carolinas

FHA Cash-Out Refinance

An FHA cash-out loan allows homeowners with existing FHA or non-FHA mortgages to refinance their current loan and access cash based on the home's current value. Essentially, it unlocks the equity built up in the home, turning it into liquid capital that homeowners can use for various purposes.

What are the Benefits?

Flexible Usage: One of the primary attractions of FHA cash-out loans is the freedom to use the funds as the homeowner sees fit. Whether it's for home improvements, debt consolidation, tuition payments, or any other need, the money is at the homeowner's discretion.

Generous Loan-to-Value Ratios: FHA cash-out loans typically offer higher loan-to-value (LTV) ratios than many conventional loans. This means homeowners can borrow a larger percentage of their home's value.

Relaxed Credit Requirements: FHA loans, in general, are known for having more lenient credit requirements compared to conventional loans. This makes the cash-out option accessible to a broader range of homeowners, including those with less-than-perfect credit scores.  In fact, Allied First Bank may be able to help borrowers with credit scores as low as 550.

Competitive Interest Rates: Due to the government backing of FHA loans, we can offer very competitive interest rates, which can result in lower monthly payments and less interest paid over the life of the loan.  

Mortgage Insurance: While FHA loans require both upfront and monthly mortgage insurance premiums, this insurance can be beneficial. It protects lenders against losses, allowing them to offer loans to a broader spectrum of borrowers.

What Considerations Should Be Made

While FHA Cash-Out Refinances provide numerous benefits to borrowers, there are some specifics that require thorough consideration. For instance, all FHA loans require mortgage insurance premiums, which can increase the closing costs and monthly payments. However, if a home has substantial equity, along with the borrower having good credit and a low debt-to-income ratio, opting for a conventional cash-out refinance may be a better choice.

What Is My Eligibility & What Are The Guidelines?

One of our FHA mortgage specialists will review your income, assets, credit history, in order to make sure you meet the basic qualifications for an FHA cash-out loan.  Even though FHA loans are more lenient, meeting specific debt-to-income ratio guidelines is required. Moreover, it's crucial to bear in mind that these loans are only granted for owner-occupied properties and are not offered if the borrower has a history of delinquent mortgage payments. In case a borrower has been in a property for less than a year, the lower value between the appraised value and the original purchase price will be used to determine the maximum loan amount.  So, in this case it would be more beneficial for the borrower to wait more than 12 months so that a new appraisal can be obtained, and we can use the current value of the home.

Getting Started

It's extremely easy to get the process started to see if you qualify for an FHA cash-out loan.  All you need to do is give us a call, fill out our contact form or complete our pre-qualification form so that we can get started assessing your current situation.  We are experts in at FHA loans and work to help our client's make the most informed and beneficial decision possible when choosing to access cash from their home.  

Request a Consultation with an Allied First Bank Loan Specialist

Allied First Bank of The Carolinas

  • Michael Parker
  • (800) 697-4371
  • MPO NMLS#: 457569
  • AFB NMLS#: 203463
  • 3804 Peachtree Ave.
  • Suite 200
  • Wilmington, NC 28403

Get a Free Rate Quote Online!

As a condotel lender, we specialize in offering financing for a wide range of condominiums, including condotels. Our services encompass condotel loans and loans for non-warrantable condo projects. If you're having difficulties finding condotel financing for the condo hotel you have your sights on, don't lose hope! Our goal is to assist you in acquiring the property you desire.

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