FHA Streamline Refinance
The FHA Streamline Refinance is an exclusive mortgage program for home owners who currently have FHA mortgages. If you have a conventional, VA or other type of mortgage, then an FHA Streamline Refinance is not an option for you. If you currently have an FHA mortgage, then an FHA Streamline is the fastest and easiest way for you to refinance.
Why FHA Streamline Refinance is a Great Way to Go
One of the greatest features of an FHA Streamline Refinance, especially in today’s Gainesville market, is that there is no appraisal required. FHA (Federal Housing Administration) will use the original purchase price of your home, regardless of what your home’s value today. Therefore, even if your home is upside down, you can get a lower rate with an FHA Streamline Refinance with no additional cost or penalty. Because there is no appraisal, the time and cost of an FHA Streamline Refinance is also less.
In addition to not needing an appraisal, there is no credit requirement for an FHA Streamline Refinance. You can have late payments, a low score, collections and charge offs because there is no credit check. In its place, the lender uses your payment history with your current mortgage company as an indication of how you will pay your loan in the future. Because of this, your mortgage payment history is extremely important. You must be up to date on your mortgage, you must have a perfect payment history for the last 90 days, and you can only have one late payment in the last 12 months.
Income and employment are not important with an FHA Streamline Refinance. There is no income or employment verification with an FHA Streamline Refinance. Therefore, you can have low or reduced income, high debt ratios, or even be unemployed.
Because there is no appraisal, credit scoring or income verification, there is a significant reduction in the paperwork and documentation you must provide to be approved for an FHA Streamline Refinance.
FHA Streamline Refinance Requirements
So it might sound like any one can get an FHA Streamline Refinance – provided their FHA mortgage is current and has been paid on time. Well, there are a few additional stipulations:
210 Day Waiting Period. 210 days must have past since you closed on your current mortgage, and a minimum of 6 payments must have been paid.
Reduction of Payment. The FHA Streamline Refinance must reduce your mortgage payment by at least 5%, unless there is some other benefit like refinancing an adjustable rate to a fixed rate, or a 30 year to a 15 year mortgage.
No cash out is allowed with an FHA Streamline Refinance. You cannot increase the loan amount to pay off additional liens or to pay closing costs on your refinance. This may mean that you will have to pay closing costs out of pocket at the time of closing. Sometimes we can increase the rate so that Landmark Mortgage can pay the closing costs for you. This is called a “zero-cost FHA Streamline Refinance”. Get a rate quote on zero-cost FHA Streamline now.
Other Things to Consider about an FHA Streamline Refinance
You can get either a fixed rate or an adjustable rate mortgage with your FHA Streamline Refinance. If your current mortgage has a variable rate – you can change it to a fixed rate. You can also choose a 15 year or 30 year term.
If you currently have an FHA mortgage, you already pay a mortgage insurance premium (MIP) in addition to your monthly principle and interest payment. If you obtained your current FHA mortgage prior to June 1, 2009, you will probably not have much of an increase in either your upfront or monthly MIP. If you closed after June 1, 2009, you may pay slightly more in the upfront or monthly MIP. If your rate is lower you may still have a significant savings in your overall payment. In addition, you may be entitled to a refund of your original MIP (which we can check for you). This often reduces the actual cost by a significant amount. MIP refunds are determined on a prorated basis decreasing every month that you hold your FHA mortgage, so it is usually a good idea to refinance sooner rather than later with FHA.
So, to sum things up, you can be unemployed, without income, have a horrible credit rating and even be upside down on your mortgage — and yet you can still be approved for the FHA Streamline Refinance program. Here’s the best part – It doesn’t cost you anything to find out just how much you can save with an FHA Streamline Refinance. Since we don’t need to verify income, value of your home, or credit, we can tell you if you are approved and how much you will save with just a little information. Click here now to find out how much you will save…