FHA Loan Expert Blog

I was contemplating the relative importance of the much anticipated FHA short refinance program recently when a friend of mine mentioned the FHA short refinance program in more detail.  This made me wonder whether the FHA refi program would be available for all Federal Housing Administration (FHA) borrowers desiring to refinance or whether this would be another public relations move for political gain.  As a result of this quandry, I decided to study the FHA short refinance in more detail.

FHA is the federal housing adminstration and is the governments vehicle for lending mortgage money for refinances and for purchase transactions.  The short refers to a type of FHA refinance that is short funds or too short to pay off the entire loan.  There are a few problems with the FHA short refinance program and the most notable is the fact that the FHA short refinance program requires the lender to accept a short payoff.

Most lenders prefer to get the entire payoff amount and do not want to be short any funds.  This in essence makes the FHA short refinance program more political talk and less reality for most fha borrowers desiring to refinance through the FHA short refi.

We will revisit the FHA short refinance program at a later date.