California Refinance Loans Beware Of Scam Artist

Are you interested in refinancing your California home? Have you received unsolicited emails or postal mail offering you amazing refinance loan deals on FHA or VA refinance loans? No all the communications you receive with these types of offers are legitimate and there are a variety of scams to beware of.

One recent scam involves mentions of VA loans, FHA loans or their refinance loan counterparts, but quickly leads to mention of these agencies providing short-term loans or payday loan type offers. These offers are NOT legitimate and potential refinance loan applicants should beware of them

Government-backed mortgage loan programs do not offer short-term loan options such as payday loans or uncollateralized loans. There’s a difference between a 15-year mortgage loan option which may be described by some as a short-term loan (short term as in, it’s not a full 30 year mortgage) and the types of payday loans offered in a scam claiming to be from the VA or FHA.

Some borrowers consider refinancing loans on their California homes because they want to cash in on the equity built up in the home. Sometimes a borrower needs to tap into a line of credit in order to solve a short-term or medium term financial problem or situation--cash out refinancing seems to be a good way to do that for some borrowers. That’s why an offer of a payday loan or short term line of credit in connection with an FHA loan or VA loan seems so appealing.

And that’s exactly what these scam artists are counting on.

Borrower beware--there is no VA or FHA short term payday loan available as a legitimate offer. A 15-year mortgage, yes. A payday loan, no. There’s a difference between a non-amortized mortgage loan and a payday loan, and any borrower who is contacted about a payday loan type transaction in connection with the VA or FHA should call these agencies directly for assistance and to report the offer. Borrowers should NOT call the numbers given in the unsolicited email or postal mail, but look up the VA or FHA online and call the numbers listed on the official site instead.

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