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Can I refinance my FHA loan if I am unemployed?
Can I refinance my FHA loan if I am unemployed OR do I need to wait until I get a job? Can I do an FHA streamline refinance loan if I am unemployed?
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1 Reply
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Refinancing an FHA loan when you’re not working is tough, but it can be done under some circumstances. Here are a few points to consider:
- Standard FHA Refinance
Employment and Income Requirements: Typically, you must prove stable income and employment for a standard FHA refinance. This can be not easy if you don’t have a job. You may need to wait until you secure new employment before proceeding with a traditional refi.
FHA Streamline Refinance
No Income Verification Required: The FHA Streamline Refinance program aims to simplify refinances. One way it does this is by often not requiring income verification or employment documentation. FHA streamline refinance makes it possible to qualify even if you’re currently unemployed.
No Appraisal Required: Another cost-saving feature of the FHA Streamline Refinance is that it usually doesn’t require a new appraisal, potentially speeding up the process.
On-Time Payment History: The main requirement for an FHA Streamline Refinance is that you have made your mortgage payments on time in recent history, typically at least three consecutive months before applying.
Net Tangible Benefit: You need to show some “net tangible benefit” (e.g., lower interest rate or reduced monthly payment) provided by the refinance, but this benefit doesn’t always require proof of current income.
Main Considerations:
Mortgage Payment History: An ideal mortgage payment history will improve your chances of getting an FHA streamlined refinance, especially if you’re unemployed.
Closing Costs: Although closing costs can be rolled into the loan amount through an FHA Streamline Refinance, ensure this still saves money overall.
Concluding Thoughts:
If jobless, the only option available would most likely be an FHA streamline refi since they do not ask for proof of income or employment. However, all other qualifications must still be met, such as having a good payment history and proving there will be some tangible benefit from the refinance.
Please let me know if there is anything else I can help clarify or assist with!