How You Can Benefit With FHA Streamline Refinance Loans

If you are a homeowner who currently has a FHA mortgage which is a government insured loan, you may just be a great candidate for an FHA streamline refinance and benefit from today’s low home loan rates. The term “Streamline” merely means when it comes to lending, is very little paperwork to give the mortgage company. Due to little documentation, it allows the borrower a faster and easier mortgage closing.An FHA streamline refinance more often than not has the following traits:o No minimum credit score requirements.
o No asset documentation such as bank statements, retirement accounts, etc.
o An Appraisal may not be necessary. If an appraisal is required for an FHA Streamline, the maximum loan is restricted to 97.75%. If an appraisal is not used, there is not a maximum loan restriction.
o Upfront mortgage insurance is decreased to 1.5% of the base loan amount (instead of 1.75% for a normal FHA refinance which is not streamlined).
o Any cash from proceeds to the borrower is restricted to $500.Here are some simple rules for homeowners to know when it comes to FHA refinancing:o The mortgage to be paid off must be an FHA insured mortgage.
o The borrower can not have had a 30 day or greater mortgage late payment in the previous 12 months.
o Non-occupant co-borrowers are not allowed.
o The new loan amount is subject to FHA maximum loan limits in your geographical area.
o If a property has been converted to an investment property it can still qualify for a FHA streamline refinance if the existing mortgage is an FHA loan.Now, to make sure you get your FHA refinance done correctly, use a mortgage company or loan officer whose company is HUD approved. The benefit is you get to use a company that is an endorsed HUD approved lender and that generally mean they have their own “in-house” FHA underwriters. This speeds up the time for approval and closing. Timing is crucial in today’s market as rate move up and down quickly.If you’re interested in an FHA Streamline refinance loan and still have questions about how it may work for your individual situation or what the maximum loan limits are in your state, inquire below. To get started, you will need to gather the following information for a loan officer to review. The information will normally consist of the following:o Your Home’s Property address
o Estimated property taxes and home owners insurance.
o Original FHA loan balance from when you got the mortgage.
o Existing FHA loan balance.
o Estimated home value (appraisal may not be required).