St. Louis Mortgage Help

Refinancing Your Mortgage With Little to Zero Equity - St. Louis MO

March 24th, 2017 3:11 PM by Bob Rutledge

"Can I refinance my home if I have no equity in my house?" "I am underwater on my home can I refinance?" "How can I get cash out of my home if I have no equity?" These are just a few of the questions I get asked as a Mortgage Loan Officer.

The answer is YES, you can refinance just about any mortgage to just about any mortgage program with little to zero equity in your house!

FHA Mortgages; this is one of my favorites because there are all sorts of way to make FHA work for you. If you already have a FHA Mortgage utilizing the FHA Streamline refinance works well for those with little to no equity in your house because it doesn't matter. The FHA Streamline does not require an appraisal in most situations, they will actually use the last appraisal of your home. There is no cash out at closing with a Streamline refinance only rate and term changes.

If you do not have an FHA Mortgage or can't do a Streamline Refinance FHA allows for a rate and term refinance up to 97.75% of the appraised value. If you need cash out of your home the loan to value for an FHA cash out refinance is 85% of the appraised value. In both of these situations the lender will require a new appraisal. If you would like to learn more about the FHA Mortgage click the link.

FHA has a special loan program called the FHA 203k Renovation Mortgage, if you are looking to use the equity in your home to make improvements or remodel your home this may be your solution if you have little to zero equity. The FHA 203k will allow you to borrower 110% of the appraised value of your home. The appraisal value for a FHA 203k is based on what your home will be worth once your home improvements are completed, basically giving you a valuation on your home on the future work to be done. You will have refinanced your current mortgage plus received the money needed to make the improvements to your home. I am a Certified FHA 203k Removation Mortgage Specialist and can help. If you would like to know more about the FHA 203k Renovation Mortgage follow the link.

VA Mortgages, 100% of the value of your home! No matter the type of refinance of your current VA mortgage you can borrow up to 100% of the appraised value, this includes cash out refinances. Yes, you can get cash out of your home up to 100% of the new appraised value.

Are you someone that served in the United States Armed Forces and you don't current have a VA mortgage. First, thank you for your service to the country, it is appreciated. Second, you need to consider refinancing to a VA Mortgage, follow the link to learn more.

Conventional Mortgage, Fannie Mae or Freddie Mac, 95% is the maximum rate and term refinance you can do with a conventional mortgage. If you want to do a cash out refinance you are very limited in your loan to value to 80% of the new appraised value. Nothing really special about conventional mortgages. 

Fannie Mae has a renovation type mortgage very similar to the FHA 203k Renovation Mortgage, the Fannie Mae Program is called the HomeStyle Renovation Mortgage. If you want or need a conventional mortgage AND you are want cash out for improvements to your home the Homestyle renovation mortgage will allow you to borrow up to 95% of the new appraised value. Now you have refinanced your current mortgage plus received the funds to improve your home. I close many renovation mortgages every year, if you have questions please feel free to contact me.

USDA Mortgage, no cash out refinancing with a USDA mortgage, but you can refinance to lower your interest rate and/or shorten your term with little to zero equity.

HARP, the Home Affordable Refinance Program, this program was developed my our Federal Government for the sole purpose of allowing home owners to refinance their home when they have little to zero equity. The HARP refinance will allow for you to refinance your home even when you are underwater. If you would like to learn more about HARP please click on the link. 

If you would like to talk about refinancing your home, especially if you have little to no equity in your home please feel free to contact me. 
Bob Rutledge Mortgage Loan Officer

St. Louis MO, St. Charles MO, Kansas City MO, Springfield MO, Columbia MO, Cape Giradeau MO, Branson MO, Jefferson City MO

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