There are several refinance program options available for home loans, including:
- Conventional refinance: A conventional refinance is a loan that is not guaranteed or insured by the government. It can be used to refinance both fixed-rate and adjustable-rate mortgages and may have lower interest rates and closing costs than government-backed loans.
- FHA refinance: An FHA refinance is a loan backed by the Federal Housing Administration. It is available to homeowners with a current FHA loan or homeowners who want to refinance into an FHA loan. FHA loans typically have more lenient credit requirements and may allow for a lower down payment.
- VA refinance: A VA refinance is a loan backed by the Department of Veterans Affairs. It is available to eligible veterans and active-duty military personnel with a current VA loan or homeowners who want to refinance into a VA loan. VA loans typically have competitive interest rates and may not require a down payment or mortgage insurance.
- USDA refinance: A USDA refinance is a loan backed by the U.S. Department of Agriculture. It is available to homeowners with a current USDA loan or homeowners who want to refinance into a USDA loan. USDA loans are designed for low- to moderate-income borrowers in rural areas and may have lower interest rates and fees than conventional loans.
- HARP refinance: The Home Affordable Refinance Program (HARP) is a program that allows homeowners with underwater mortgages (where the home value is less than the mortgage balance) to refinance into a more affordable loan. HARP has specific eligibility requirements and is only available to homeowners with certain types of loans.
It’s important to understand the requirements and benefits of each refinance program option before deciding which one is right for you. Working with a trusted mortgage professional can help you navigate the refinance process and find the best program for your unique situation.