FHA Mortgage Rates Are At Year Low: FHA Streamline Refinance Home Loan

FHA Streamline Refinance Home Loan

Gustan Cho Associates

FHA Streamline Refinance Home Loan Requirements:

Mortgage rates across the board on all mortgage loan programs are at a 18 month low and those homeowners with a FHA loan can benefit from these low FHA mortgage rates by doing a FHA streamline refinance.  FHA allows current FHA mortgage loan borrowers with a current FHA loan and who have been current on their FHA mortgage payments in the past 12 months to do a FHA streamline refinance which requires no minimum credit scores, no income verification, and no new appraisal.  Many FHA homeowners can save tens of thousands of dollars throughout the life of their FHA loan by taking advantage of the current low FHA mortgage rates by refinancing their current FHA loan.

Qualifying For FHA Streamline Refinance Home Loan

The only qualification needed is that the main borrowers and co-borrowers be current on their FHA mortgage loan payments in the past 12 months.  Some FHA streamline refinance mortgage lenders will allow a one time 30 day late payment in the past 12 months on their FHA mortgage payments.  With FHA streamline refinance mortgage loans, no credit scores are required, no income verification is required, and no appraisal is required.

Bad Credit And Recent Late Payments, Can I Still Qualify For FHA Streamline Refinance Home Loan?

Yes.  The only credit criteria you need to qualify for a FHA streamline refinance mortgage is that you have made your current FHA loan payments timely for the past 12 months.  As mentioned above, some FHA streamline refinance mortgage lenders will allow a one time 30 day late payment in the past 12 months on your FHA loan payment.  Other credit monthly payments do not matter.  You can have been late on your car payment, credit cards, installment loans, and other creditors even in the past 12 months and as long your FHA mortgage loan monthly payment have been timely.

High Debt To Income Ratio, Can I Still Qualify For FHA Streamline Refinance Home Loan?

There is no income verification required to qualify for a FHA streamline refinance mortgage.  However,  you do need to have full time employment.  Your income will not be verified and your debt to income ratios will have no impact on a FHA streamline refinance.

Why Is New Appraisal Not Required?

FHA does not require for a new appraisal since they already approved you for a FHA loan with a FHA approved appraisal when you purchased the home.  FHA streamline refinance is for rate and term FHA refinance mortgage loans only and cash out is not allowed.  FHA figures if they insured your FHA mortgage loan with a prior FHA appraisal that their collateral will still be safe and this is the reason they are waiving a new appraisal.

Other FHA Guidelines On FHA Streamline Refinance Home Loan

To be eligible for a FHA streamline refinance mortgage loan, the current FHA homeowner needs a net tangible benefit of their current housing payment to be reduced by at least 5% or more.  If there is no net tangible benefit to the homeowner, you will not qualify for a FHA streamline refinance mortgage loan.  For example, if your current total monthly housing payment is $1,000, for your to qualify for a FHA streamline, your new payment needs to be reduced to at least $950.00 or less.

Closing costs on FHA streamlines can be covered by lender credit.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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