FHA Streamline Refinaning
The FHA Streamline Refinance is dedicated for homeowners with existing FHA mortgages. Even if you are underwater, have had splotchy employment, or a few hard hits on your credit score, this special product is specifically accommodating to you. It is the fastest and simplest way for FHA-insured homeowners to refinance their mortgages to take advantage of today's market interest rates.
An FHA Streamline Refinance 1) does not require a home appraisal, 2) will allow you to use your original purchase price as your home's current value (regardless of what your home is actually worth today), and 3) does not care if you are underwater on your mortgage, or have very little equity.
FHA also omitted standard verification requirements such as employment, income, and credit score verification. That means you can still be approved for a FHA Streamline Refinance if you've been (1) out-of-work, (2) without income, (3) have a poor credit rating and (4) have no home equity.
These combined requirements are intended to help people struggling to make their mortgage payment. If you are thinking about refinancing your FHA loan, the time is now!
Below are some FHA eligibility guidelines:
Homeowners who have a FHA-backed mortgage prior to June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point. No additional mortgage insurance premiums are due for jumbo FHA mortgages in "high-cost" metropolitan areas including: Montgomery County, Maryland, New York City, New York, and Fairfax County, Virginia.
Homeowners who have a FHA-backed mortgage on or after June 2009 has the following MIP changes:
If a homeowner refinances within 3 years of the loan's start date, FHA provides a refund on previously-paid upfront MIP. This means you could save hundreds of dollars! If you have a FHA mortgage and you keep thinking about refinancing, NOW is the time! The sooner you refinance, the bigger your refund, and the lower your total loan size. With rates at historic lows, refinancing your home could lower your monthly payments and save you thousands of dollars.
An FHA Streamline Refinance 1) does not require a home appraisal, 2) will allow you to use your original purchase price as your home's current value (regardless of what your home is actually worth today), and 3) does not care if you are underwater on your mortgage, or have very little equity.
FHA also omitted standard verification requirements such as employment, income, and credit score verification. That means you can still be approved for a FHA Streamline Refinance if you've been (1) out-of-work, (2) without income, (3) have a poor credit rating and (4) have no home equity.
These combined requirements are intended to help people struggling to make their mortgage payment. If you are thinking about refinancing your FHA loan, the time is now!
Below are some FHA eligibility guidelines:
- Perfect, 3 month mortgage payment history (One mortgage late payment is allowed in the last 12 months. Loans must be current at the time of closing.)
- 210-Day "Waiting Period" Between Refinances
- The Refinance Must Have "Purpose" (applicants must demonstrate a legitimate reason for refinancing.)
- Credit Scores Are Not Verified
- Appraisals Not Required
- Employment And Income Are Not Verified
- No cash out can be taken out
Homeowners who have a FHA-backed mortgage prior to June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point. No additional mortgage insurance premiums are due for jumbo FHA mortgages in "high-cost" metropolitan areas including: Montgomery County, Maryland, New York City, New York, and Fairfax County, Virginia.
Homeowners who have a FHA-backed mortgage on or after June 2009 has the following MIP changes:
- 15-year loan terms with loan-to-value over 90% : 0.70 percent annual MIP
- 15-year loan terms with loan-to-value under 90% : 0.45 percent annual MIP
- 30-year loan terms with loan-to-value over 95% : 1.35 percent annual MIP
- 30-year loan terms with loan-to-value under 95% : 1.30 percent annual MIP
If a homeowner refinances within 3 years of the loan's start date, FHA provides a refund on previously-paid upfront MIP. This means you could save hundreds of dollars! If you have a FHA mortgage and you keep thinking about refinancing, NOW is the time! The sooner you refinance, the bigger your refund, and the lower your total loan size. With rates at historic lows, refinancing your home could lower your monthly payments and save you thousands of dollars.