California FHA Streamline Refinance
This ARTICLE On California FHA Streamline Refinance Was Updated On March 31, 2017
California is the nation’s largest state and has one of the most expensive home prices in the nation. The Great Recession of 2008 has affected many homeowners in California where their home values plummeted. Many California homeowners still have mortgage interest rates in the 7% or higher range. Due to the real estate and mortgage meltdown, California homeowners had their credit affected and those who have FHA Loans do not realize that they can qualify for California FHA Streamline Refinance with no credit, no income, and no appraisal with bad credit. California FHA Streamline
Refinance Loan Programs Allow To Qualify For California FHA Streamline Refinance With The following
- No Credit Scores Required
- No income verification so debt to income ratios does not matter. No tax returns, no W2s, no paycheck stubs required
- No appraisal required. The home value can be less than the FHA Loan amount owed
- Closing in two to three weeks
- The only thing that is required is that the FHA Borrower paid their current FHA Loan on time for the past 12 months
- California FHA Streamline Refinance Borrowers get to skip one or two payments after their refinance closing
- The Gustan Cho Team has California FHA Streamline Refinance Mortgage Programs with no closing costs to the borrower
FHA Streamline Refinance Mortgages
Many borrowers wonder why the FHA Streamline Refinance process requires no appraisals, income verification, nor home appraisal. HUD is the parent of the Federal Housing Administration. FHA allowed streamlines refinancing on FHA home loans since early 1980’s. The term streamline on FHA refinance mortgages means that the amount of documentation required and the refinance process is limited. Basically, streamline implies that the loan process is streamlines for fast quick turnaround time for refinancing an existing FHA mortgage to a new FHA mortgage so the borrower can save time and money. Homeowners can save tens of thousands of dollars by going through a FHA Streamline Refinance mortgage, especially California homeowners due to the larger loan size.
Requirements On California FHA Streamline Refinance Loans
Almost every California homeowner with mortgage interest rates at 4.75% or higher will benefit from California FHA Streamline Refinance Mortgage.
Below Are The California FHA Streamline Refinance Loan Requirements
- The homeowners need to have a current FHA mortgage.
- The FHA mortgage to be refinanced needs to be current and borrower needs to have a 12 months timely payment history on their current FHA Loan.
- One 30 day late payment in the past 12 months allowed but the late payment cannot have been in the past 6 months.
- The borrower needs to get a net tangible benefit by doing a California FHA Streamline Refinance.
- The mortgage loan borrower needs to have at least a 5% reduction in monthly mortgage payment savings.
- FHA does not allow any cash out refinancing with a streamline refinance mortgage.
- All of the original borrowers on the original FHA loan needs to be on the new FHA Streamline Refinance mortgage loan which includes non-occupant co-borrowers.
Fees And Costs On California FHA Streamline Refinance
The Gustan Cho Team offers no cost FHA Streamline Refinances where homeowners will get a lender credit for all closing costs and skip up to two months of mortgage payments. There is no out of pocket expenses by borrowers to do a streamline refinance. Since there is no appraisal, there will be no appraisal costs. Another great advantage on streamlines is that borrowers do not need to go to the title company to close on their home loan. They can close at the convenience of their own home or at their offices. The title agent will travel to them and all docs can be signed at any destination the borrower prefers.
California FHA Streamline Refinance Mortgage Lenders
Not all mortgage lenders can do FHA Streamline Refinances. Lenders who have higher mortgage rates cannot offer California FHA Streamline Refinance Mortgages because they cannot offer lender credit for borrower’s closing costs. The Gustan Cho Team at Nationwide Mortgage & Realty LLC has relationships with dozens of investors where we can offer mortgage rates low enough where we are able to give lender credit to borrowers and cover all fees and costs on California FHA Streamline Refinance Mortgage Loans. The only way streamlines can be done only if lenders can offer lender credit towards the streamline borrower’s closing costs. There are many lenders that cannot do FHA Streamline Refinances because they have higher mortgage interest rates and cannot offer lender credit.
Why Does HUD Not Require Income, Credit, Appraisal On Streamlines?
If you are a California homeowner interested in doing a California FHA Streamline Refinance Mortgage, there is no income verification required so debt to income ratios are not a concern. HUD does not require credit score so late payments is not a concern with the exception of mortgage late payments. Homeowners can be late on car payments, credit card payments, and other installment debts and still get approved and closed on a FHA Streamline Refinance Mortgage. No appraisal is required on FHA Streamline Refinance.