June 16, 2024

Frequently Asked Questions about FHA Refinance Programs

1. What is an FHA Cash-out Refinance?

An FHA cash-out refinance is a mortgage program that allows eligible homeowners to refinance their existing mortgage for a larger loan and receive the difference as cash. Importantly, homeowners must be able to meet certain criteria set out by the Federal Housing Administration (FHA) and they must, crucially, apply through an FHA-approved lender.

2. What are the eligibility criteria for an FHA Cash-out Refinance?

To qualify for an FHA cash-out refinance, participants must have a credit score of at least 600 (as set by most lenders). They should have a debt-to-income ratio that falls below 43%, have over 20% equity in their home, and should have made their mortgage payments on time for the past year.

3. How much can I borrow with an FHA Cash-out Refinance?

The amount homeowners can borrow with an FHA cash-out refinance largely depends on the equity built up in the individual’s house. As a guideline, owners may borrow up to 80% of the appraised house value, apart from any existing mortgage balance. However, closing costs typically range from 2% to 6% and homeowners need to be aware that they are responsible for these payments.

Beware of Scam Ads

Often, online scams will flaunt an ‘easy money’ opportunity, promising large sums of cash through a government-insured program. They might use seemingly legitimate terms such as the ‘FaCOP Refi Initiative’ to mislead individuals into providing them with personal information. Always exercise caution when reading these ads. They are not affiliated with the Government nor any FHA-approved lenders. Always remember that legitimate FHA cash-out refinance plans require homeowners to meet specific eligibility criteria and to go through approved lenders to participate in the program.# How to Spot and Avoid Government Grant Scams

Government grant scams are fraudulent schemes where scammers pose as government officials to trick people into giving them money or personal information. Here are five critical points to keep in mind to avoid falling victim:

1. Free money does not come easy. Real government grants require an application and are targeted for a specific purpose.

2. Do not pay any money for a “free” government grant.

3. Check for look-alikes. Fake government agencies may sound real.

4. Unsolicited calls asking for your banking information are always suspicious.

5. If in doubt, check through legitimate sources before sharing any information.

## Frequently Asked Questions

### How can I tell if a government grant offer is a scam?

If the offer comes unsolicited to you, if the source is asking you for money or personal information to process the grant, or if the agency does not exist when you look into it, it’s likely to be a scam.

### Where can I find legitimate information about real government grants?

The official site for government grants is [grants.gov](https://www.grants.gov). You can find a list of real government agencies at [usa.gov](https://www.usa.gov/agency-index).

### What should I do if I’ve been a victim of a government grant scam?

You can report the scam to the Federal Trade Commission at [ReportFraud.ftc.gov](https://reportfraud.ftc.gov) or to the Better Business Bureau at their [Scam Tracker page](https://www.bbb.org/scamtracker).

| | |
| **Site to start** | [grants.gov](https://www.grants.gov) |
| **Report a scam** | [ReportFraud.ftc.gov](https://reportfraud.ftc.gov) |
| **Scam Tracker page** | [bbb.org/scamtracker](https://www.bbb.org/scamtracker) |