The Federal Housing Administration or FHA is the largest guarantor of mortgage loans in the United States. FHA mortgage refinancing is best known for allowing homeowners to borrow up to 97% of the appraised value of the home, flexible qualifaction guidelines and low fixed rates. Read on to find out more...

If you've never refinanced through FHA you might think that it's more complicated because you're involved with a government agency. Well, you'll be pleasantly surprised to learn that refinancing with an FHA loan is a lot like the process of refinancing with any other loan. However, with an FHA loan you have many more protections and it will be easier to get qualified.

Determine what kind of loan you have
If you already have an FHA loan, you have a few more options for refinancing than if you than if you have a conventional or other non-FHA loan. After you fill out our short form and an FHA Approved lender contacts you, ask them about your options.

Determine what you're trying to do
Are you looking to take advantage of FHA mortgage loans' lower interest rates? Are you looking to consolidate some credit card debt or a home equity loan into one single mortgage? Are you looking to take cash out of your property? Your refinancing goals will determine what kind of FHA refinance loan you want to apply for.

Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. There are some online tools you can use, and some tools that your real estate agent can help you with, but it's best to visit an FHA-approved lender to find out for sure.

Compare the advantages and considerations of owning versus renting using our mortgage calculator. You can find our simple to use mortgage calculator on our FHA mortgage refinance, FHA mortgage purchase, FHA mortgage purchase rehab loan qualification pages.

You should remember that prequalification (an informal estimate of how much you might borrow) is just to give you a preliminary idea of what you can afford, and to identify any major problems that you will want to fix. It's not a guarantee that you will be approved for a loan-but you will want to get pre-qualified to avoid any surprises. The best way to pre-qualify is to go to our FHA mortgage refinance, FHA mortgage purchase, FHA mortgage purchase rehab loan qualification pages and fill out our short secure form. This information will be directly sent to an FHA approved mortgage lender who will be able to answer any questions you may have regarding an FHA mortgage loan as well as get you pre-qualified and more. Apply Now.

Shop for a loan
Save money by doing your homework. Talk to several lenders, compare interest rates, and negotiate or bargain to get a better deal. Consider getting pre-approved for an FHA mortgage loan.

Why ask for an FHA mortgage loan? There are many reasons to ask your lender for an FHA loan instead of a conventional loan or an expensive, risky sub-prime loan.

• Lower cost
  FHA loans have competitive interest rates because the the Federal Government insures the loans. Always compare an FHA loan with other loan types.
• Better rates and programs
  FHA mortgage loans offer low fixed rates around 5.00% fixed for 30, 20 or 15 years.
• Easier to qualify
  Because the FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements, so it's easier for you to qualify.
• Less than perfect credit
  Even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan because FHA insures your mortgage.
• More protection to keep your home
  The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA has many options to help keep you in your home and avoid foreclosure.

The process is pretty much the same as your original mortgage. After you fill out our short form you will be contacted by a few different FHA approved lenders. The loan officer will help you complete your refinance application and have you sign a several forms and then order an FHA case number, an identification number specifically for your loan application.

The lender may order an appraisal to find the value of the property and its condition. An FHA appraisal is no different than other appraisals. The lender will review the appraisal to determine the value of the property, then make a decision on your application.

You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign. In most cases the lender will provide an attorney that will review and explain the documents you are signing.

The majority of this artice is derived from http://www.fha.gov/owner/process.cfm entitled