FHA Streamline Mortgage In Illinois
This BLOG On FHA Streamline Mortgage In Illinois Was UPDATED On March 26, 2017
After the financial and real estate market crash of 2008, millions of homeowners in the U.S. have lost their jobs, their businesses, their investments, and seen their life long savings plummet. Chicago homeowners were one of the greatest affected by the Great Recession of 2008.
- Illinois homeowners, especially, have seen the equity in their homes diminish to nothing and others have seen the values of their homes plummet by more than 50%.
- Millions of homeowners are now stuck with their homes because their mortgage on their house is more than the value.
- This has created a major crisis situation that millions of homeowners ended up bailing and turning in the keys to the lender and walking away from their homes.
- Fortunately, the housing market has recovered starting 2010 and many with bruised credit had another opportunity to become homeowners again.
- FHA had very lenient credit and debt to income ratio guidelines and many home buyers took the opportunity to get FHA Loans to purchase a home.
- However, many got in when mortgage rates were high and the FHA annual mortgage insurance premium was higher at 1.35%.
- FHA rates are now lower and the mortgage insurance premium for FHA got reduced to 0.85% where refinancing their original with a FHA Streamline Mortgage in Illinois can not just reduce a homeowners monthly mortgage payments but will save tens of thousands of dollars over the course of the term of their mortgage.
FHA Streamline Mortgage In Illinois: No Appraisal, No Income, No Credit
For those Illinois homeowners who currently have an FHA mortgage, relief is here with a FHA Streamline Mortgage in Illinois:
- Main reason why homeowners refinance their home loans is to save money and lower their monthly mortgage payments.
- There are several refinancing options for homeowners to help reduce their monthly housing payments.
- FHA Streamline Mortgage in Illinois is a fast track refinance program for Illinois homeowners who already have FHA mortgages.
- FHA Streamline Mortgage requirements is a fast track loan program by HUD which requires reduced documents by borrowers
- Closing on Streamline Refinances is normally completed and closed in 3 weeks or less, and can save FHA borrowers tens of thousands of dollars over the course of the term of their loan and lower their monthly payments at the same time.
- FHA Streamline Mortgage Loans are very attractive because there is a no appraisal, no income, and no credit refinance program.
- All that is required is that borrowers be timely on their FHA Loan for the past 12 months.
- One to four unit owner occupant properties only.
- Borrowers get to skip two mortgage payments
- No closing costs on FHA Streamline Refinances in Illinois
- Closing costs will be paid by The Gustan Cho Team
FHA Streamline Mortgage In Illinois Requirements
Under FHA Streamline Mortgage, homeowners do not need a new home appraisal and it not required by HUD.
- The new FHA Streamline Mortgage in Illinois cannot exceed the original amount the homeowner has originally borrowed at the time of the
- If homeowners had their property values increase and need a cash out FHA Refinance Mortgage, then it is not a FHA Streamline Mortgage and will need appraisal, income, and credit and is a whole new mortgage process.
- Loan officers will go over the various refinance programs available besides the streamline.
- Late payments and derogatory credit is acceptable but borrowers need to have been timely with their current FHA Loan payments for the past 12 months
- Closing costs will be covered by lender credit
- Borrowers get to skip two monthly mortgage payments after the refinance
- Closing in 2 weeks
Benefits Of FHA Streamline Mortgage In Illinois
FHA Streamline Mortgage in Illinois aren’t the same as cash-out refinancing programs and borrowers are not allowed to get any cash back at closing. Here are the benefits of refinancing with a streamline:
- It requires very little paperwork and it is streamlined where most refinances close in less than 3 weeks.
- Lower monthly mortgage payments.
- Thousands of dollars in savings over the life of the FHA Loans because of the lower mortgage interest rates with the new FHA Loan.
- Many homeowners who are disciplined can apply the savings of the new FHA mortgage payment to the principal of their loan balance and this will shave off years of the term of the loan.
- Credit Scores do not matter and the only requirement is that borrowers have been timely on their FHA Loan for the past 12 months.