FHA Streamline Loan Program
FHA REFINANCE: STREAMLINED REFINANCING
Even though the FHA Streamline program has been around in some fashion since the early 1980's, President Obama's administration began pushing the program again recently to take advantage of the unbelievably low interest rates we are currently seeing. Below is a synopsis from the Federal Housing Administration regarding what the Streamline program can do for you.
[This] refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly - oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender, which saves you as the consumer valuable time and money.
In order to qualify for a Streamlined Refinance your original home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere. Everyone likes more cash in their pocket!
Unfortunately, those with a conventional loan that wish to refinance with an FHA refinance loan will need to apply with the usual employment verification, credit check, debt ratio requirements and other considerations. An FHA refinance loan can get you many of the same results, and you may get better rates and lower payments.
Below are the current stipulations for the program:
- Mortgage must be approved by FHA by May 31, 2009
- No late payments for the past 12 months are allowed
- The new principal and interest must be reducing the current principal and interest by at least 5%
If you have any questions regarding this program, please follow the link below and a representative will get back to you in a timely fashion. Thank you for your interest!