FHA Streamline Refinance Guidelines With Bad Credit Virginia

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This ARTICLE On FHA Streamline Refinance Guidelines With Bad Credit Virginia Was UPDATED On July 21st, 2019

FHA Streamline Refinance Guidelines With Bad Credit Virginia

Virginia homeowners with current FHA loans who still have the 1.35% FHA annual mortgage insurance premium and mortgage rates higher than 4.5% may want to consider doing an FHA streamline refinance in Virginia with no closing costs, no income, no credit, and no appraisal required.

  • FHA Streamline Refinance Guidelines do not require a new appraisal, no income verification, and no credit scores
  • The only thing that FHA Streamline Refinance Guidelines in Virginia require is that the homeowner has a 12 month past timely mortgage payment history
  • Virginia FHA streamline refinance mortgage loan applicants can have late payments in the past 12 months with other creditors except for their mortgage payments
  • Debt to income ratios will no longer be an issue when it comes to FHA streamline refinance mortgage loans for Virginia homeowners
  • This is because the mortgage lender will not verify income
  • Credit scores are not required
  • However, if the Virginia FHA homeowners have great credit, we can use credit scores so we can get the borrower the best possible FHA mortgage rates in Virginia

Appraisal Guidelines On Streamlines

Appraisal Guidelines On Streamlines

HUD does not require an appraisal:

  • This is because, in the eyes of HUD, they are insuring FHA loan in Virginia
  • The borrower has already have gone through an FHA appraisal on a Virginia property
  • The Virginia homeowner has been paying your mortgage payments on time

So why order another appraisal since the home is already FHA insured.

  • FHA will go by the original purchase price of the Virginia homeowner’s home as the value of the home, no matter what the home is currently worth. 
  • The home can be worth less than the balance of your mortgage and you can still qualify for an FHA streamline mortgage loan.

FHA Streamline Refinance Guidelines: Easiest and Fastest Loan Closing

FHA Streamline Refinance Guidelines: Easiest and Fastest Loan Closing

Most FHA Streamline Refinance Guidelines in Virginia are so streamlined that Streamline Refinance mortgage loans close in 2 to 3 weeks. They are the easiest mortgage loans that are out there.

  • No employment verification is required with the Virginia FHA Streamline Refinance mortgage
  • Income verification on Virginia borrowers is also not required so homeowners do not have to worry about debt to income ratios
  • Credit scores are not required with FHA streamline mortgage refinance loans
  • So you can have a recent late payment with your other creditors
  • However, you must have been current on your home mortgage for the past 12 months
  • Another major exemption is that no appraisal is required for FHA streamline refinances

Eligibility Requirements For Virginia FHA Streamline Refinance

Eligibility Requirements For Virginia FHA Streamline Refinance

  • To be eligible for an FHA Streamline Refinance, all of the borrowers, whether they are co-borrowers, non-occupant co-borrowers all need to be on the new FHA streamline refinance loan
  • Homeowners cannot add or take off an original borrower or any co-borrowers
  • The borrower needs to meet HUD NET TANGIBLE BENEFIT REQUIREMENTS to qualify for FHA Streamline Refinance
  • Virginia homeowners who intend in taking out an original co-borrower or co-borrowers, they need to do a regular FHA refinance mortgage loan
  • Income verification is required, credit scores are required, and appraisal is required on full rate and term refinances

Documents Needed For FHA Streamline Refinance Loans

Documents Needed For FHA Streamline Refinance Loans

The great news for Virginia homeowners with FHA Streamline Refinance mortgage loans is that all they will not need the dozens of items required when they first got their original Virginia FHA home purchase loan.

  • No tax returns, no W-2s, no bank statements, no income verification
  • Bad credit is no problem to do a Virginia FHA Streamline Refinance Mortgage
  • Virginia FHA Borrowers can have bad credit, late payments, recent collections, and charge offs
  • Other derogatory credit on their credit report are allowed and still qualify for FHA Streamline Refinance Mortgages in Virginia
  • All that is required is the Borrower be current with their current FHA Loan payments for the past 12 months
  • One 30-day mortgage late payment is allowed
  • Virginia homeowners get to skip two mortgage payments after their streamline refinance.
  • Gustan Cho Associates will cover all closing costs with a lender credit
  • There is no money out of pocket.

Required Documents For Streamlines

Required Documents For Streamlines

The required documents that are needed are the following:

  • copy of mortgage note
  • a recent mortgage statement
  • homeowners insurance declaration page
  • copies of borrowers and co-borrowers drivers license
  • social security cards

Virginia homeowners can contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response anytime. We are available 7 days a week, evenings, weekends, holidays via phone, text, or email us at gcho@gustancho.com.

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