For the last few years, homeowners have benefited greatly from record low FHA rates on fifteen and thirty year mortgage terms. According to several government approved lenders, mortgage rates for the FHA streamline program were very attractive in the beginning of 2013.
In April, the Federal Housing Administration implemented some new rules that could have profound affects on borrowing under government mortgage programs. HUD approved a significant change that does not enable FHA customers to get rid of their mortgage insurance on FHA mortgages if they had less than 10% equity in their home when they refinanced or purchased it. Mortgage insurance premiums went up on every government insured loan programs with the exception of the FHA streamline refinance. Unfortunately many first time home buyers may reconsider financing with FHA if these changes remain in effect.
The FHA Streamline Company continues to offer low FICO FHA refinance loans with loan approvals for borrowers below a 620 FICO. If you already have a FHA mortgage, consider our streamline loan that automates the mortgage refinance process while reducing the lender costs.
FHA Streamline Program
- Must use new guidelines regardless of case number date
- VOM for 12 months – 0×30
- VOD to verify funds to close
- No Credit Score Pulled
- No FICO Requirement
- No AVM
- Manufactured Home Allowed
The FHA Streamline Company has been originating and processing FHA loans since 1995. We are one of the volume FHA lenders in California and continue to offer the widest variety of FHA home loans! Choose from the FHA 203k loan, Streamlines, FHA jumbo, cash out refinancing and more.
Our company is one of the last FHA lenders designated to do FHA Manual Underwrites, because HUD rewards our loan portfolio. Presently, the FHA Streamline Company is originating FHA loans in all 50 states.
Today FHA insures 685 billion in mortgage liens. The US Congress mandates that Federal Housing Administration uphold cash reserve requirements which are equal to two percent of this amount. The existing FHA reserves total approximately a half percent which equates to$3.6 billion. Many people will look to FHA for first time home buyer programs. The sub-prime lending crash in 2006 and last year’s government bailouts of mortgage giant’s Fannie Mae and Freddie Mac have polarized the FHA loan program and made the FHA mortgage lending products more vulnerable. Will FHA need a bailout package from Congress? Only time will tell, but the fact that they continue to have to raise mortgage insurance premiums is not a good sign.
What is a FHA streamline loan? The streamline refinance is the same as the regular FHA refinance, just less paperwork. While this may sound like a selling gag, it can save you a good chunk of closing costs. In most cases the FHA mortgage lender will waive the appraisal.
To qualify for a FHA streamline refinance, you must already have an FHA loan that you have made at least six payments on. And you cannot be currently delinquent. The focus of this type of refinance is to lower your monthly payments. These loans require that, if you have a current fixed rate and want to get fixed rate financing, then your new monthly payments must be at least five percent lower than your current one. If you have an ARM and would like to refinance to a fixed, or another combination, your mortgage professional will be able to provide more information.
A FHA streamline refinance is a great way to lower your monthly payments while FHA mortgage rates are still low. There are two options for refinance in this situation. Some companies will offer a “no cost” option that means you will have no out of pocket expenses. The catch is that your interest rate may be a bit higher. The other option is to wrap the costs into the mortgage amount. Your payment may be a bit higher though, and you must have equity to cover it. Discuss both options with your mortgage lender and see which one is for you.
Sandy recommends learning more about FHA Mortgage products online. He suggests comparing FHA lenders and verifying their experience processing FHA loans. Article Source: http://EzineArticles.com/?expert=Sandy_Sarconi
The lack of reserves for FHA loans prompted changes to the HUD’s credit policy and the hiring of a new chief risk officer for FHA mortgage lending. HUD announced they were reviewing an expected shortfall in the Federal Housing Administration’s capital reserve ratio.
Among the revised guidelines are new requirements for FHA streamline refinance loans. The FHA Streamline product is an exclusive refinance option for borrowers who already have FHA mortgages and it can be used for rate and term refinance transactions only.
In a recent report, HUD announced stricter net worth requirements for approved FHA mortgage lenders who are authorized to originate and close loans that are insured by the Federal Housing Administration. There are new changes planned by the U.S. Department of Housing and Urban Development, but mortgage brokers maintained eligibility under the changes with liability on FHA loans they originate being shifted to approved FHA mortgagees. This will apply to FHA mortgage companies offering FHA streamline, cash out, purchase and 203k loans.
Among the announced changes was a requirement that supervised mortgagees annually submit audited financial statements to ensure they are adequately capitalized. HUD noted that the majority of FHA mortgage companies are already required to submit audited financials to regulators, investors and Fannie Mae and Freddie Mac.
The FHA Streamline Refinance Company announced a new website dedicated to helping FHA homeowners uncover the best FHA mortgage rates online. The FHA lending company posts HUD news and FHA loan guidelines so consumers can consider the FHA streamline loans that lower interest rates and monthly payments.
Sign up and get email alerts on FHA rates, so you know the best time for an FHA streamline.