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 Virginia FHA Loan
What are Virginia FHA Loans?
FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.
What factors determine if I am eligible for an FHA Loan in Virginia?
To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.
What is the maximum amount that I can borrow?
The maximum amount for an FHA Mortgage is determined by:
Maximum Loan Amount in Virginia: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in Virginia. The highest maximum FHA Home Loan right now in Virginia is $625,500. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the Virginia FHA Loan Limit chart at the bottom of this page.
Maximum financing: In VA, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.
How much money will I need for the down payment and closing costs?
Virginia FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.
What property types are allowed for FHA Loans in Virginia?
While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.
More information on FHA Mortgages
What types of refinance programs does FHA offer in Virginia?
There are three main types of FHA Refinance loans available in Virginia.
 FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.
Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.
Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.
How much can I refinance in Virginia?
The maximum amount for an FHA loan is determined by
 Maximum Loan Amount in Virginia
The maximum FHA Loan Amount allowed for FHA Mortgage Refinance varies from county to county in Virginia. The highest maximum FHA refinance loan amount right now in Virginia is $625,500. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the VA FHA Loan Limit chart at the bottom of this page.
Maximum financing: In Virginia, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in Virginia is 85%.
What factors determine if I am eligible for an FHA Refinance Loan?
To be eligible for an FHA Mortgage Loan Refinance in Virginia, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.
Virginia FHA Mortgage Limits by County
| MSA Name |
County Name |
One-Family |
Two-Family |
Three-Family |
Four-Family |
| NON-METRO |
ACCOMACK |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CHARLOTTESVILLE, VA (MSA) |
ALBEMARLE |
$437,000 |
$559,450 |
$676,200 |
$840,400 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
ALEXANDRIA |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| NON-METRO |
ALLEGHANY |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
AMELIA |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| LYNCHBURG, VA (MSA) |
AMHERST |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| LYNCHBURG, VA (MSA) |
APPOMATTOX |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
ARLINGTON |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| STAUNTON-WAYNESBORO, VA (MICRO) |
AUGUSTA |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BATH |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| LYNCHBURG, VA (MSA) |
BEDFORD |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| LYNCHBURG, VA (MSA) |
BEDFORD IND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BLAND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| ROANOKE, VA (MSA) |
BOTETOURT |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA) |
BRISTOL |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BRUNSWICK |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BUCHANAN |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BUCKINGHAM |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
BUENA VISTA |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| LYNCHBURG, VA (MSA) |
CAMPBELL |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
CAROLINE |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
CARROLL |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
CHARLES CITY |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
CHARLOTTE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CHARLOTTESVILLE, VA (MSA) |
CHARLOTTESVILLE |
$437,000 |
$559,450 |
$676,200 |
$840,400 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
CHESAPEAKE |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
CHESTERFIELD |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
CLARKE |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| NON-METRO |
CLIFTON FORGE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
COLONIAL HEIGHT |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
COVINGTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| ROANOKE, VA (MSA) |
CRAIG |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CULPEPER, VA (MICRO) |
CULPEPER |
$287,500 |
$368,050 |
$444,900 |
$552,900 |
| RICHMOND, VA (MSA) |
CUMBERLAND |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| DANVILLE, VA (MSA) |
DANVILLE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
DICKENSON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
DINWIDDIE |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
EMPORIA |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
ESSEX |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
FAIRFAX |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
FAIRFAX IND |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
FALLS CHURCH |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
FAUQUIER |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| NON-METRO |
FLOYD |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CHARLOTTESVILLE, VA (MSA) |
FLUVANNA |
$437,000 |
$559,450 |
$676,200 |
$840,400 |
| ROANOKE, VA (MSA) |
FRANKLIN |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
FRANKLIN IND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WINCHESTER, VA-WV (MSA) |
FREDERICK |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
FREDERICKSBURG |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| NON-METRO |
GALAX |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| BLACKSBURG-CHRISTIANSBURG-RADFORD, VA (MSA) |
GILES |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
GLOUCESTER |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
GOOCHLAND |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
GRAYSON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CHARLOTTESVILLE, VA (MSA) |
GREENE |
$437,000 |
$559,450 |
$676,200 |
$840,400 |
| NON-METRO |
GREENSVILLE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
HALIFAX |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
HAMPTON |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
HANOVER |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| HARRISONBURG, VA (MSA) |
HARRISONBURG |
$277,150 |
$354,800 |
$428,850 |
$532,950 |
| RICHMOND, VA (MSA) |
HENRICO |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| MARTINSVILLE, VA (MICRO) |
HENRY |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
HIGHLAND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
HOPEWELL |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
ISLE OF WIGHT |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
JAMES CITY |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
KING AND QUEEN |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
KING GEORGE |
$350,750 |
$449,000 |
$542,750 |
$674,500 |
| RICHMOND, VA (MSA) |
KING WILLIAM |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
LANCASTER |
$442,750 |
$566,800 |
$685,100 |
$851,450 |
| NON-METRO |
LEE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
LEXINGTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
LOUDOUN |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| RICHMOND, VA (MSA) |
LOUISA |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
LUNENBURG |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| LYNCHBURG, VA (MSA) |
LYNCHBURG |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
MADISON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
MANASSAS |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
MANASSAS PARK |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| MARTINSVILLE, VA (MICRO) |
MARTINSVILLE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
MATHEWS |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| NON-METRO |
MECKLENBURG |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
MIDDLESEX |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| BLACKSBURG-CHRISTIANSBURG-RADFORD, VA (MSA) |
MONTGOMERY |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| CHARLOTTESVILLE, VA (MSA) |
NELSON |
$437,000 |
$559,450 |
$676,200 |
$840,400 |
| RICHMOND, VA (MSA) |
NEW KENT |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
NEWPORT NEWS |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
NORFOLK |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| NON-METRO |
NORTHAMPTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
NORTHUMBERLAND |
$318,550 |
$407,800 |
$492,950 |
$612,600 |
| NON-METRO |
NORTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
NOTTOWAY |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
ORANGE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
PAGE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
PATRICK |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
PETERSBURG |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| DANVILLE, VA (MSA) |
PITTSYLVANIA |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
POQUOSON |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
PORTSMOUTH |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
POWHATAN |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| NON-METRO |
PRINCE EDWARD |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
PRINCE GEORGE |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
PRINCE WILLIAM |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| BLACKSBURG-CHRISTIANSBURG-RADFORD, VA (MSA) |
PULASKI |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| BLACKSBURG-CHRISTIANSBURG-RADFORD, VA (MSA) |
RADFORD |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
RAPPAHANNOCK |
$359,950 |
$460,800 |
$557,000 |
$692,200 |
| NON-METRO |
RICHMOND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| RICHMOND, VA (MSA) |
RICHMOND IND |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| ROANOKE, VA (MSA) |
ROANOKE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| ROANOKE, VA (MSA) |
ROANOKE IND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
ROCKBRIDGE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| HARRISONBURG, VA (MSA) |
ROCKINGHAM |
$277,150 |
$354,800 |
$428,850 |
$532,950 |
| NON-METRO |
RUSSELL |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| ROANOKE, VA (MSA) |
SALEM |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA) |
SCOTT |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
SHENANDOAH |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
SMYTH |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
SOUTHAMPTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
SPOTSYLVANIA |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
STAFFORD |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| STAUNTON-WAYNESBORO, VA (MICRO) |
STAUNTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
SUFFOLK |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
SURRY |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| RICHMOND, VA (MSA) |
SUSSEX |
$535,900 |
$686,050 |
$829,250 |
$1,030,600 |
| BLUEFIELD, WV-VA (MICRO) |
TAZEWELL |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
VIRGINIA BEACH |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV METRO |
WARREN |
$625,500 |
$800,775 |
$967,950 |
$1,202,925 |
| KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA) |
WASHINGTON |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| STAUNTON-WAYNESBORO, VA (MICRO) |
WAYNESBORO |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
WESTMORELAND |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
WILLIAMSBURG |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
| WINCHESTER, VA-WV (MSA) |
WINCHESTER |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
WISE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| NON-METRO |
WYTHE |
$271,050 |
$347,000 |
$419,425 |
$521,250 |
| VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) |
YORK |
$458,850 |
$587,400 |
$710,050 |
$882,400 |
FHA loans in Virginia's top cities:
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FHA Refinance Programs
FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.
Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.
FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.
FHA Refinance Questions & Answers
What are the guidelines for an FHA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.
Why should I consider refinancing into a FHA-insured mortgage?
FHA-insured mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.
What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new FHA mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.
Does it matter that the value of my home is now less than what I still owe?
Not to The FHA, but your current lender will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.
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