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What is a FHA Streamline Loan?
Posted by: | CommentsWhat 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
FHA Streamline Refinance Guidelines Tighten
Posted by: | CommentsThe 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.
FHA Mortgage Companies Face Stricter Eligibility Requirements
Posted by: | CommentsIn 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.