Qualifying For FHA Streamline Refinance In California?
Qualifying For FHA Streamline Refinance In California:
A FHA Streamline Refinance is a fast track refinance mortgage loan program for homeowners with a current FHA Loan where they can refinance their current FHA Loan into another FHA insured mortgage loan at a lower mortgage rate to lower their mortgage rates and have a reduction in their monthly mortgage payments and where they can save tens of thousands of dollars in interest expense over the term of their FHA fixed rate mortgage loan. The current FHA mortgage 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. FHA Streamline Refinance Mortgage loans need all original mortgage loan borrowers, including all non-occupant loan borrowers that signed on the original loan to be on the new FHA Streamline Mortgage loan. FHA Streamline Refinance mortgage loans are the easiest and fastest loans to do and there are no appraisal requirements, no income verification requirements, and no credit score requirements. You can be late on all of your other payments except for your mortgage loan payments and still qualify for a FHA Streamline Refinance mortgage loan.
FHA Streamline Refinance In California Requirements
California home values are one of the highest in the country. Average home loans in California is substantially higher than home loans in other parts of the United States. Most FHA loan limits is set at $271,500, however, California FHA loan limits in high cost counties of California, the FHA loan limits are capped at $625,500. The higher your mortgage loan balance is, the more dollars you will save with the combination of the reduction of your monthly mortgage payments and the interest expense over the term of your FHA Loans.
What Is The Minimum Waiting Period To Do FHA Streamline Refinance In California After Your Home Purchase?
All FHA insured mortgage loans do not come with a pre-payment penalty. However, you need to wait 211 days in order for you to do a FHA Streamline Refinance mortgage from the date of the home purchase closing with a FHA insured home loan.
No Appraisal Required With FHA Streamline Refinance In California
A great benefit with a 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 as long as the homeowner has been making timely payments on their FHA loan for the past 12 months. All FHA Streamline Refinance mortgage loans are rate and term refinance mortgages and there are no cash-out allowed. You can do a FHA cash-out refinance mortgage loan and the maximum amount of loan to value on a cash-out refinance mortgage loan is 85%, however, it needs to be done as a regular FHA mortgage loan and not a FHA Streamline Refinance mortgage. With regular FHA refinance mortgage loans, appraisal is required and so is income verification and credit scores.
Net Tangible Benefit: Requirement For FHA Streamline Refinance In California
The mortgage industry is extremely regulated and in order for a homeowner to qualify for a FHA Streamline Refinance in 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 FHA Streamline Refinance mortgage just for the sake of not liking their current mortgage loan company and/or mortgage loan servicer. The homeowner needs to benefit from the FHA 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 insured mortgage loan into another FHA insured mortgage loan within 36 months, you qualify for a partial refund of your 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 and at the end of the 36 months, will be be zero refund of you UFMIP.