With property values declining in most parts of the country and lending tightening, we are arguably in a difficult mortgage lending period and one that affects fha refinacining to a high degree. This causes many FHA refinances to be short funds to pay off the present mortgage balance. This is called a short refinance through FHA and is popular among FHA enthusiasts and particularly among the FHA borrowers who are short mortgage funds to close on the new refinance.
The FHA Housing Bill is intended to spur FHA short refinances into action. The primary problem with this is the fact that the FHA refinance program is a voluntary and the lenders who have mortgage loan balances will not be quick to short the payoff funds. Tall or short there is a dilemma. The main focus of short borrowers has less to do with their height and more to do with the refinances of the mortgage debt that is a lien on the property.
Ask a mortgage lender nicely to short the payoff and you may obtain an FHA refinance. You will be required to provide documentation for the short refinance through FHA. This is a catch 22 equation. On the one side, you must qualify for the FHA short refinance with the originating lender. On the other side, you must have a need for a short refinance. If you are a tall person and make a lot of money, then you will prbably not be able to qualify for the short refinance. Not because of your height, that has nothing to do with it. It is the fact that you are requesting the lender to take a loss when they short and a person who makes much money will be paying the loan off in full over time. A loan that is paid off in full is better for a lender FHA than a loan that is an FHA short refinance any day of the week.
More on the FHA short refinance at a later day. Thank you for your time.