There are still tens of thousands of homeowners who did not take advantage of FHA Streamline Refinance Illinois Loan Programs with today’s historic record low rates. Inflation rates are soaring and there is no doubt mortgage rates will start going up at a faster speed than ever before. Many homeowners dread the thought of going through the mortgage process again with submitting tax returns, W2s, paycheck stubs, divorce decree, bank statements, and countless other documents. With FHA streamline Illinois loan programs, the process is very simple, and most streamlines close in three weeks or less.
Mortgage Rates Forecasted To Increase In The Coming Years
The 2008 Real Estate and Mortgage Collapse plummeted real estate values not just in Chicago and the state of Illinois but the whole country. Home prices have skyrocketed the past several years and many experts are talking about another potential market correction in the near future. Many homeowners are enjoying substantial equity in their homes. Nearly all the homes that underwater (a term referred to where their mortgage loan balances are higher than the value of their home) are exponentially higher than ever before. There are countless homeowners who still have homes with FHA mortgage rates in the 4.0% to the mid 5.0% range where they can substantially lower their monthly PITI with a streamline refinance.
In this article, we will discuss and cover mortgage guidelines on FHA streamline refinances.
FHA Streamline Refinance Illinois With No Appraisal
With the FHA Streamline Refinance, there is no appraisal required so the value of the property does not matter. Homeowners with underwater mortgages will qualify for Streamline Refinancing. Our country had a national foreclosure crisis and home values throughout the country plummeted. There is no county or city in this country that the real estate crash of 2008 did not affect. To avoid a national foreclosure epidemic and also to reward those homeowners that did not bail and turn in their keys, the government created the FHA Streamline Refinance Home Loan Program. Economists and housing experts have mixed predictions of the housing market. Many are predicting another housing market correction worse than the 2008 financial crisis. Home prices have increased double digits year after year. HUD and the Federal Housing Finance Agency have been increasing FHA and conforming loan limits for the past six years in a row due to skyrocketing home prices. Many Illinois homeowners have more than enough equity to cash in their equity with a cash-out refinance. However, most who have went through the 2008 housing crisis are playing it safe and want to lower their payments and live within their means. Most homeowners’ goals is to have a free and clear home. FHA streamline refinance will not add any debt to the homeowner. If anything, it will save homeowners tens of thousands dollars in interest expense over the years.
Net Tangible Benefit To Homeowners
FHA Streamline Refinance Illinois With No Closing Costs is still available today:
- In order to qualify for FHA Streamline Refinance Illinois Mortgage, homeowners need to meet net tangible benefits per HUD FHA Streamline Net Tangible Benefits Guidelines
- By net tangible benefits, the borrower needs to have an advantage and benefits in order for the loan officer to proceed with a streamline
A loan officer cannot originate from the streamline refinance if it does not benefit the homeowner.
Reason For No Appraisal Requirement
One of the great benefits of doing an FHA Streamline Refinance Illinois mortgage is that there is no home appraisal requirement.
Here is the take with HUD why they do not require another FHA home appraisal:
- HUD, the parent of FHA, requires no appraisals on FHA Streamline Refinance Mortgages
- This is because they feel that they are currently insuring an FHA Loan
- Since the borrower has been timely in making their payment there is no reason why they will not continue making payments on their home loans with lower monthly payments
- Since the home is FHA insured, why order a second appraisal
- If the homeowner has been timely with their current FHA mortgage for the past 12 months, why would they not be current with a new FHA mortgage that has a lower payment than the current mortgage payment
The above bullet points make all the sense in the world. The bottom line is why would HUD need a new appraisal on a property they are currently insuring and all of the borrowers and/or co-borrowers are still on the note and the loan balance is the same. The FHA Streamline Refinance Program does not require the homeowner to get an appraisal since we are assuming the value of the house is lower than the mortgage amount.
FHA Streamline Refinance Illinois Guidelines
FHA Streamline loans are described in the official rules HUD FHA Handbook 4000.1 as follows:
- To qualify for FHA Streamlines, borrowers need current FHA Loan
- FHA Streamline Refinances are very simple with very little documentation required
- Most FHA Streamline Refinances close in two to three weeks
- FHA Streamlines has been created to help homeowners to lower the monthly principal and interest payments on a current FHA Loan
- The is no cash-out with FHA Streamlines
- New loan balance need to be the same as loan balance being refinanced with the exception of minor pricing adjustments which is normally not to exceed a certain dollar amount
- All original borrowers need to be on the new FHA Loan which includes co-borrowers with streamlines
Homeowners who need cash-out or need to take out a co-borrower need to do a regular FHA Refinance Mortgage which will require a new home appraisal.
Credit And Income Requirements On FHA Streamline Refinance Illinois
As mentioned earlier, FHA Streamline Refinance Loans are the easiest loans any loan officer can do. There is no other loan program out there with a faster closing than streamline refinance mortgages. Most streamline refinances originated by Gustan Cho Associates are closed in two to three weeks. Besides no appraisal required, there are no credit scores required and no income verification with FHA Streamline Refinance Illinois mortgages.
Illinois FHA Streamline Refinance Step By Step Mortgage Process
Here are the FHA Streamline Refinance Illinois Mortgage Requirements:
- No FHA home appraisal required
- No closing costs
- Most borrowers can skip two mortgage payments
- No credit check
- Borrower’s credit scores do not matter
- The borrower can be late with any other monthly payments with the exception of their current FHA Loan
- Borrowers can have recent late payments on credit card debt, installment loans, auto loans, and any other creditors with the exception of their current FHA Loan
- One late payment on their FHA Loan is acceptable but not in the last six months
- There are no income verification requirements
- Paycheck stubs, tax returns, and W2s are not required
FHA Streamline Refinance Mortgage Documents Requirements
FHA Mortgage Insurance Premium Requirement On FHA Streamline Refinance
Most FHA borrowers often ask about if the FHA mortgage insurance factors into the maximum loan–this issue is touched on above but is further clarified in the rules as follows:
Housing Market After The 2008 Housing Crisis
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. Others have seen the values of their homes plummet by more than 50%. Millions of homeowners are now stuck with their homes . This is 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. Many were turning in the keys to the lender and walking away from their homes
Recovery Of Housing Market In Illinois
Fortunately, the housing market has recovered starting in 2010. Many with bruised credit had another opportunity to become homeowners again. HUD had very lenient credit and debt to income ratio guidelines. 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. The mortgage insurance premium for FHA got reduced to 0.85%. Refinancing their original loan with an FHA Streamline Mortgage in Illinois can not just reduce a homeowner’s monthly mortgage payments. It will save tens of thousands of dollars over the course of the term.
FHA Streamline Illinois: No Appraisal, No Income Docs, No Employment Verification, No Credit
For those Illinois homeowners who currently have an FHA mortgage, relief is here with an FHA Streamline Mortgage in Illinois:
- The 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 Refinance is a fast-track refinance program for Illinois homeowners who already have FHA mortgages.
How Does The Streamline Mortgage Process Work
FHA Streamline Mortgage requirements is a fast-track loan program by HUD that requires reduced documents by borrowers. Closing on Streamline Refinances is normally completed and closed in 3 weeks or less. Borrowers can save 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
Easy To Qualify And Save Tens Of Thousands With FHA Streamline
This is 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 Gustan Cho Associates
FHA Streamline Requirements In Chicago
Under FHA Streamline Mortgage, homeowners do not need a new home appraisal and it is 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 purchase. If homeowners had their property values increase and needed a cash-out FHA Refinance Mortgage, then it is not an FHA Streamline Mortgage. Cash-out refinances 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 are 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 isn’t the same as cash-out refinancing programs and borrowers are not allowed to get any cashback at closing.
Here are the benefits of refinancing with a streamline:
- It requires very little paperwork and it is streamlined where most refinance close in less than 3 weeks
- Lower monthly mortgage payments
- Thousands of dollars in savings over the life of the FHA Loans
- This is 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
- This will shave off years of the term of the loan
- Credit Scores do not matter
- The only requirement is that borrowers have been timely on their FHA Loan for the past 12 months
Starting The FHA Streamline Loan Process In Chicago Today And Closing In Two Weeks
Most FHA streamline refinance mortgages in Illinois take about two weeks from the time of completed application until closing. The streamline refinance process is so easy and streamlined. It is nothing like the full FHA home purchase loan process. Homeowners with a current FHA Loan can apply for an FHA Streamline Refinance Mortgage Loan now. Apply online by clicking the APPLY NOW icon on the top right corner.
FHA Streamline Refinance Mortgage Process In Illinois With No Stress And Two Weeks To Close
Once you have submitted your application, either one of our loan officers at Gustan Cho Associates will contact you. Again, FHA Streamline Refinances are very simple and streamlined where little documentation is required. Illinois homeowners with FHA Loans can save tens of thousands of dollars by refinancing with an FHA Streamline Refinance Illinois Mortgage. There are no closing costs with us because due to our low mortgage rates, we are able to cover the borrower’s closing costs with a lender credit. Contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Homeowners can email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.
December 26, 2021 - 8 min read