FHA Streamline Refinance Mortgages Guidelines Kansas

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This BLOG ON FHA Streamline Refinance Mortgages Guidelines Kansas Was Updated On December 27th, 2018
what is the improvement of FHA refinancing Guidelines for Kansas Mortgages

FHA Streamline Refinance Mortgages are very popular in the state of Kansas. This is due to the large percentage of Kansas homeowners with high-interest rate FHA Loans.

  • Homeowners making the decision to refinance home loan in the state of Kansas with an FHA Streamline Refinance Mortgages can save tens of thousands of dollars over the course of their loan term
  • There are several factors Kansas homeowners need to keep in mind and have under consideration
  • Kansas homeowners with current FHA Loan with rates higher than 4.5% can benefit from FHA Streamline Refinance Mortgages.
  • No closing costs: Gustan Cho Associates can potentially cover closing costs with a lender credit
  • Borrowers who do an FHA Streamline Refinance Mortgages In Kansas benefit from skipping two mortgage payments
  • No credit scores required

FHA Streamline Refinance Mortgages With Bad Credit

Borrowers can have bad credit and recent late payments:

  • The only credit requirement is that homeowners need to be timely just on their FHA mortgage payments for the past 12 months

No income verification:

  • Tax returns, W2s, and paycheck stubs is not required so debt to income ratios is not an issue

No appraisal required:

  • Limited documents required since it is an FHA streamline refinance mortgages
  • Most FHA Streamline Refinance Mortgages close in two to three weeks

In this article, we will cover and discuss FHA Streamline Refinance Mortgages Guidelines Kansas.

How Long Are You Planning On Keeping Home?

How Long Are You Planning On Keeping Home?

It does not matter how long homeowners will stay in their current homes with an FHA Streamline Refinance Mortgages because there are no closing costs.

  • One of the greatest benefits with a no closing cost FHA Streamline Refinance Mortgages in Kansas is that the homeowner will skip up to two months of mortgage payments PLUS they will have an instant reduction on their new housing payment

FHA Streamline Refinance Mortgages is not like a regular full refinance mortgage where borrowers need to pay for closing costs and/or points.

Regular Refinance Home Loans

Unlike FHA Streamline Refinances with no closing costs, if homeowners need to pay for closing costs, then the length of the time they intend in staying at their current home does matter to recoup their closing costs.

  • With every mortgage transaction, there are closing costs unless the lender will give a lender credit towards a homeowners closing costs
  • Closing costs can be rolled into the balance of the mortgage loan balance

Here is how closing costs are paid on a mortgage refinance transaction:

Closing costs paid by homeowner:

  • Homeowners who are planning on moving to a larger home 
  • or downsizing to a smaller home within the next three years, it will probably not make much sense in refinancing current home loan if the homeowner needs to cover the closing costs

Refinance home loan costs money in closing costs, and depending on which county and state your home is located, closing costs can add up to be thousands of dollars:

  • Depending on how much the new mortgage interest rates will be, the closing costs can be rolled into the mortgage loan but there is a break-even period to recoup your refinance home loan closing costs

For example, if your closing costs on a refinance home loan is $2,400 and borrowers can save $100 per month by refinancing their home loan, it will take 24 months for you to recoup the closing costs of the refinance home loan.

Discount Points For Lower Mortgage Interest Rate

How to get discount points

Discount Points is when a borrower pays a premium to buy down the mortgage interest rate:

  • Homeowners planning to stay in their home for at least three to five years, it may make sense to buy down the mortgage interest rates with “points”
  • One mortgage point is equivalent to 1.0% of the mortgage loan amount
  • Lenders can give lender credit for mortgage rate buy-downs and closing costs but borrowers can get even lower rates by buying points

Borrowers refinancing with a traditional refinance mortgage can avoid coming up with cash out of pocket by adding the points and the closing costs to the balance of their new mortgage loan.

HUD Requirements On FHA Streamline Mortgages

Here are the HUD Streamline Requirements 

  • The homeowner needs net tangible benefit which means in order for the streamline to proceed, it needs to benefit the borrower with savings
  • The homeowner gets to skip two mortgage payments
  • The homeowner needs to have a current FHA loan that has been paid timely in the past 12 months
  • All original borrowers, including non-occupant co-borrowers, needs to be on the new FHA Loan
  • No closing costs: Closing costs can be paid by the lender with a lender credit
  • No credit score, no appraisal, and no income verification required
  • Limited paperwork required: Tax returns, bank statements, W–2s, and paycheck stubs not required
  • Can have recent late payments with the exception of current FHA Loan
  • Closing in two to three weeks

Kansas homeowners with current FHA Loans with higher interest rates may benefit from FHA Streamline Mortgages in Kansas. Please contact us at Gustan Cho Associates at 262-716-8151 or text for a faster response.  Homeowners with FHA Loans who have questions on FHA Streamline Mortgages and its benefits can also email us at gcho@gustancho.com.

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