FHA Streamline Refinance California With Bad Credit
FHA Streamline Refinance California is a fast-track refinance mortgage loan program for California homeowners with a current FHA loan. They can refinance their current FHA Loan into another FHA loan at a lower mortgage rate to lower their mortgage rates. Doing so will get them a reduction in their monthly mortgage payments. By refinancing their current FHA Loan with a new California FHA Loan, homeowners can save tens of thousands of dollars in interest expense over the term of their fixed-rate mortgage loan. The current loan they have must be current and not have been late in the past 12 months. One 30-day late payment in the past 12 months is permitted. In this article, we will discuss and cover the mortgage guidelines on FHA Streamline Refinancing.
Can I Do An FHA Streamline Refinance California With Bad Credit?
FHA streamline refinance California need all original borrowers, including all non-occupant borrowers that signed on the original loan to be on the new Streamline Mortgage. Streamline Refinance mortgage loans are the easiest and fastest loans to do. There are no appraisal requirements, no income verification requirements, and no credit score requirements.
FHA Streamline Refinance California Requirements
California’s home values are one of the highest in the country. Average home loans in California are substantially higher than home loans in other parts of the United States. Most FHA loan limits are set at $420,680. However, California loan limits in high-cost counties of California, the FHA loan limits are capped at $970,800. The higher the loan balance is, the more dollars California homeowners will save with the combination of the reduction of the monthly mortgage payments and the interest expense over the term of the loan.
What Is The Minimum Credit Score Requirements To Do An FHA Streamline Refinance In California?
Can I Qualify For An FHA Streamline Refinance California With A 500 Credit Score?
Homeowners can qualify for an FHA streamline refinance mortgage with a 500 credit score. The only requirement HUD requires on streamlines is that the borrower has been timely on their FHA mortgage payments for the past 12 months. They can be late on any other monthly payments reporting on their credit reports but not their mortgage payments.
How Long After Closing On My Home Can I Do An FHA Streamline Refinance?
All FHA-insured mortgage loans do not come with a pre-payment penalty. However, California homeowners need to wait 211 days in order to do an FHA Streamline Refinance in California from the date of the home purchase closing.
No Appraisal Required On FHA Streamlines
A great benefit of an FHA Streamline mortgage loan is that no appraisal is required. Under the eyes of HUD, the parent of the Federal Housing Administration, since FHA is already insuring the mortgage loan with the original FHA appraisal, they are not requiring a second appraisal. This holds true as long as the homeowner has been making timely payments on their loan for the past 12 months. All Streamline Refinance mortgage loans are rate and term refinance mortgages. There is no cash-out allowed on FHA Streamline Refinances.
FHA Streamline Versus Cash-Out Refinance Guidelines
Homeowners can do an FHA cash-out refinance mortgage loan. The maximum amount of loan to value on a cash-out refinance mortgage loan is 80% loan to value. However, it needs to be done as a regular FHA loan and not a Streamline Refinance. With regular FHA refinance mortgage loans, an appraisal is required. So is income verification and credit scores.
Net Tangible Benefit On FHA Streamlines
The mortgage industry is extremely regulated. In order for a homeowner to qualify for an FHA Streamline Refinance California, the homeowner needs to have a net tangible benefit of at least a 5% reduction of their monthly mortgage payment. What this means is that a homeowner cannot just do a Streamline Refinance just for the sake of not liking their current loan company and/or mortgage servicer. The homeowner needs to benefit from the Streamline Refinance by getting a lower mortgage rate, reduction of FHA annual mortgage insurance premium where it makes sense for the homeowner.
Refund Of Upfront FHA Mortgage Insurance Premium
If you do a refinance mortgage on your current FHA loan into another FHA mortgage within 36 months, borrowers can qualify for a partial refund of their Upfront FHA mortgage insurance premium, also known as UFMIP. The UFMIP refund will be a percentage of the UFMIP you have paid on your current FHA home loan. This percentage will go down every month for the 36 months. At the end of the 36 months, will be a zero refund of your UFMIP.
California FHA Streamline Refinance Mortgage Guidelines
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. 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 is a fast-track mortgage process and closing is in 21 days or less. In the following paragraphs, we will discuss and cover the mortgage guidelines on FHA Streamlines.
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 do not matter. No tax returns, no W2s, no paycheck stubs required. No appraisal is 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 Borrower paid their current FHA Loan on time for the past 12 months. FHA Streamline Borrowers get to skip one or two payments after their refinance closing. Gustan Cho Associates 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, or home appraisal. HUD is the parent of the Federal Housing Administration. HUD allowed streamlines refinancing on FHA home loans since the early 1980s. The term streamlines 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 streamlined for a fast quick turnaround time for refinancing an existing FHA mortgage to a new FHA mortgage. California homeowners can save time and money. Homeowners can save tens of thousands of dollars by going through an FHA Streamline Refinance mortgage. This holds especially true for California homeowners due to the larger loan size.
Requirements On California FHA Streamline Refinance Loans
Almost every California homeowner with mortgage interest rates at 5.5% 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. Needs to have a 12 month timely payment history on their current FHA loan. One 30-day late payment in the past 12 months allowed. 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 borrower needs to have at least a 5% reduction in monthly mortgage payment savings. HUD does not allow any cash-out refinancing with a streamline refinance mortgage. All of the original borrowers on the original FHA loan need to be on the new Streamline Refinance. This includes non-occupant co-borrowers
Fees And Costs On FHA Streamline Refinance
Gustan Cho Associates offers no-cost FHA Streamline Refinances. Homeowners will get a lender credit for all closing costs and skip up to two months of mortgage payments. There are 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 of streamlines is that borrowers do not need to go to the title company to close on their home loans. 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
FHA Streamline Mortgage Lenders
Not all lenders can do FHA Streamline Refinances. Lenders who have higher mortgage rates cannot offer California FHA Streamline Refinance Mortgages. This is because they cannot offer lender credit for borrowers’ closing costs. Gustan Cho Associates has relationships with dozens of investors. We can offer mortgage rates low enough where we are able to give lender credit to borrowers. Doing so we 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. This is because they have higher mortgage interest rates and cannot offer lender credit
Why Does HUD Not Require Income, Credit, Appraisal On Streamlines?
California homeowners interested in doing a California FHA Streamline Refinance Mortgage, there is no income verification required so debt to income ratios is not a concern. HUD does not require a credit score so late payments are 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 an FHA Streamline Refinance Mortgage. No appraisal is required on FHA Streamline Refinance.
California FHA Streamline Mortgage Lenders With Competitive Rates
California homeowners who have current FHA Loans with mortgage rates of 4.0% or higher can benefit from an FHA Streamline Mortgage California. Gustan Cho Associates are experts in Streamline Refinance Mortgages with no closing costs, no home appraisal, no credit verification, and no income verification with limited documents required. Please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email inquiries at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.
January 17, 2022 - 7 min read