Yes, you can absolutely refinance your FHA loan to a conventional loan. However, it's important to understand the pros and cons of doing so before jumping into the process.
Primary Differences between FHA and Conventional Loans
FHA loans are backed by the Federal Housing Administration, while conventional loans come from private lenders. FHA loans typically require lower down payments and have less stringent credit score requirements compared to conventional loans, but FHA loans come with mortgage insurance premiums.
Conventional loans, on the other hand, typically have higher eligibility requirements than FHA loans, but they don't require mortgage insurance premiums. This can lead to money savings over the course of your loan's life.
Reasons to Refinance to a Conventional Loan
There are several reasons why refinancing to a conventional loan may make sense for you.
The Refinancing Process
To successfully refinance your FHA loan to a conventional loan, you'll need to follow several steps:
Potential Drawbacks of Refinancing to a Conventional Loan
While there are several benefits to refinancing to a conventional loan, there are also potential drawbacks to consider:
Benefits of Reaching Out to a Mortgage Company
Refinancing your home can be complex, that's why we recommend that you reach out to your mortgage company or a lender to see whether refinancing to a conventional loan is the right choice for you. FHA loans Pro has a team of experts who can guide you through the entire process and answer any questions you may have. Plus, our rates and fees are highly competitive.
In conclusion, refinancing to a conventional loan can be a smart move if you meet the eligibility requirements, have built up equity, and can lock in a lower interest rate. However, it's important to weigh the benefits and potential drawbacks before making a decision and to reach out to a reputable mortgage company like FHA loans Pro to guide the way.