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WHAT IS AN FHA SHORT REFINANCE?

An FHA Short Refinance is when a home owner refinances a loan where they owe more on their mortgage than their current mortgage is worth. FHA Short Refinance applicants are upside down on their equity, and so they need an FHA Short Refinance. The only way to refinance the home for any reason, is if the current lender takes a “short pay” on the amount owed and writes it off as a loss, thus the FHA Short Refinance. It is basically the same as a short sale with the exception that the home owner keeps their home.

HOW DO YOU GET PAID ON AN FHA SHORT REFINANCE?

It is important for you to know that as a HUD approved FHA lender we cannot charge anything for the negotiation of the FHA Short Refinance payoff with your current lender. We do not charge anything “up front” for the FHA Short Refinance negotiations, and only get paid if your new loan closes.

WHAT IF THE FHA SHORT REFINANCE DOESN’T WORK?

An FHA Short Refinance is the goal for our work, but it does not work in every situation. In the case where an FHA Short Refinance does not work, you still may be able to negotiate a loan modification with your current lender to improve the terms on your existing mortgage. You may also elect to put your home up for a “short sale” and if you do we can provide you with an excellent Realtor referral in your area who specializes in this type of transaction. If you elect a short sale, it is important to work with a Realtor experienced in the short sale process.

HOW LONG DOES THE FHA SHORT REFINANCE TAKE?

An FHA Short Refinance takes about 8-10 weeks on average and will depend on how quickly you supply any requested documentation as well as the efficiency of your current lender at reviewing short refinance offers.

CAN I DO AN FHA SHORT REFINANCE ON AN INVESTMENT PROPERTY?

No. Only primary residences are eligible for the FHA Short Refinance.

HOW DO I GET STARTED ON AN FHA SHORT REFINANCE?

Getting started on your FHA Short Refinance is simple. You’ll need to collect the following documentation:

• 2 years of 1040s and W2 forms (1099s if applicable)
• 3 months of bank statements
• 30 days of current paystubs from work
• Most recent mortgage statement(s) for all existing liens on your home
• Hardship Letter (see our website for a sample)
• Monthly Budget Worksheet (see our website for a downloadable version)

Then go to www.tucson-fha-loans.com and click on Apply for an FHA loan now and fax the supporting documentation to us at 520-225-0197 (Arizona homeowners only)