What Are 2018 FHA Streamline Refinance Loan Guidelines

What Are 2018 FHA Streamline Refinance Loan Guidelines

This BLOG On What Are 2018 FHA Streamline Refinance Loan Guidelines Was UPDATED On January 15th, 2018

FHA Streamline Refinance Loan: No Credit Or Income Required

FHA Streamline Refinance Loan Explained:

FHA Streamline Refinance Loan Program is a fast track special refinance for homeowners with FHA Loans. The Gustan Cho Team at USA Mortgage offers Streamline Refinances on FHA Loans where it requires no income verification and no home appraisal required. Credit is no issue. The only requirement is that the borrower been timely with their current FHA Loan for the past year. One 30 day late payment on mortgage is allowed.

Mortgage rates have spiked up more than 1.0% mid last year and there are many homeowners who have mortgage rates north of 5.0%.

  • FHA Streamline Refinance Loan may just be the answer to homeowners in saving money
  • This might be the time to consider a FHA Streamline Refinance Loan
  • Homeowners who currently have a FHA insured mortgage loans with mortgage rates over 5.0% can save tens of thousands of dollars by refinancing current FHA Loans with FHA streamline refinance loan
  • FHA streamline refinance loan programs do not require an appraisal or nor does the mortgage lender require to verify income
  • Homeowners do need a job but income verification is not required
  • The main objective on a FHA streamline refinance loan is to lower current mortgage rate where monthly payment reduces

Bad Credit Okay With FHA Streamline Refinance Loan

Here are some basic qualification requirements on FHA Streamline Refinance Loan Programs:

  • Judgment
  • High DTI
  • Late Payments Permitted
  • Bankruptcy
  • Foreclosure of other properties
  • Collections
  • Charge Offs
  • Tax Liens
  • No Appraisal Required

Fast Track Refinance Program For Homeowners With Current FHA Loans

Only requirement is that borrowers have timely payments on their current FHA Loan for the past 12 months.

I offer FHA streamline refinance loan programs with no credit scores required.

  • As long as you have been making timely payments on current FHA insured mortgage loan for at least six months, borrowers will qualify and get approved for a FHA streamline refinance loan
  • Many folks ask what if they had a recent judgment, late payments, collections, or other derogatory credit
  • The only thing that you need to be concerned with for a FHA Streamline Refinance mortgage loan is that you have been paying current FHA insured mortgage loan on time for the 12 months
  • One late payment in past 12 months is allowed
  • However, timely payments in the past six months
  • It does not matter whether homeowner have been late with other bills as long as mortgage tradeline has been current

Debt To Income Ratio Not Required With FHA Streamline Refinance Loan

FHA streamline refinance mortgage loans does not require that the mortgage loan borrower provide income nor is there any income verification.

  • Streamline Borrowers do not have to worry about having high debt to income ratios
  • Overtime income or part time income is not important on Streamlines because no income verification is required
  • Debt to income ratios can be 80% or more and borrowers can still qualify for a FHA Streamline refinance mortgage loan

FHA Streamline Refinance Loan: Net Tangible Benefit

Homeowners who currently have a FHA Home Loan who feel they can benefit from a FHA streamline refinance mortgage loan can contact us anytime at The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com . We can go over current FHA insured mortgage to determine if borrower qualifies for net tangible benefit with a FHA streamline refinance.  The Federal Housing Administration requires that the FHA streamline refinance mortgage loan borrower have a minimum net tangible benefit of at least 5% savings of their monthly mortgage payment.

Purpose Of FHA Streamline Refinance Loan

As mentioned earlier,  to qualify for a FHA streamline refinance mortgage loan, the homeowner needs to already have a FHA insured mortgage loan and must have been current for at least six months with no mortgage late payments.

  • Credit scores and income does not matter
  • The purpose to consider a FHA Streamline Refinance Mortgage Loan is to lower current mortgage payment by lowering current mortgage rates
  • Homeowners need a net tangible benefit (savings) of at least 5% savings from current mortgage payment
  • Homeowners with FHA mortgage loans with adjustable rate mortgages can convert the adjustable rate mortgages into a 30 year fixed rate FHA loan
  • Mortgage loan borrowers cannot do a cash-out refinance loan

All FHA streamline refinance mortgage loans are rate and term refinance mortgage loans. All original borrowers, including non-occupant co-borrowers need to be on the new streamline refinance mortgage.

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