How Soon Can You Refinance a FHA Loan?

FHA loans offer a great opportunity to get into a new home at a low rate, but there are some limitations when it comes to refinancing. Here’s what you need to know.

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Introduction

If you’re interested in refinancing your home loan, you may be wondering how soon you can do so. The good news is that there are no restrictions on how soon you can refinance a FHA loan. However, there are a few things to keep in mind if you’re considering refinancing your home loan in the near future.

For one, it’s important to remember that you’ll likely need to pay closing costs when you refinance your home loan. These costs can add up, so be sure to factor them into your budget. Additionally, the new interest rate on your home loan may be higher than your current rate. As such, it’s important to compare rates and terms before deciding to refinance your FHA loan.

Finally, keep in mind that you’ll need to maintain good credit in order to qualify for the best rates and terms on a new home loan. If your credit score has improved since you originally applied for your FHA loan, you may be able to get a better deal by refinancing now. Conversely, if your credit score has declined since you took out your original loan, it’s important to wait until your credit improves before refinancing.

How long you have to wait to refinance

You generally have to wait at least 210 days from the date your first FHA loan closed before you can get an FHA streamline refinance. That’s because the program requires a 210-day seasoning period — meaning you must make all of your payments on time for nearly seven months before you can qualify.

Types of refinancing

There are two types of FHA refinance loans: cash-out refinance loans and streamline refinance loans. If you have an FHA home loan, you may be able to refinance without having to provide a lot of documentation or going through a credit check.

When to refinance

You can refinance your FHA loan as soon as you meet the following conditions:
-You have made at least six payments on your current loan
-At least 210 days have passed since you closed on your original loan
-You can demonstrate that you have a good payment history since you closed on your original loan

If you meet these conditions, you can apply for a new FHA loan through any lender that offers FHA loans. You do not have to use the same lender that provided you with your original loan.

How to refinance

If you have a Federal Housing Administration loan, you can refinance it through an FHA-approved lender. You don’t need to wait any certain amount of time before beginning the process. In fact, you can refinance the day after you close on your original loan if you want to.

Conclusion

You can refinance your FHA loan any time after 6 months from the date of your original loan. There is no waiting period like there is with conventional loans. However, you will need to demonstrate that you have made timely payments for the last 6 months, and that you have a good reason for wanting to refinance.