Do you feel Flooded in your Current Mortgage? Is your current loan an FHA?

Do you feel Flooded in your Current Mortgage?  Is your current loan an FHA?

If you said “Yes” I have Great News…..  An FHA Streamline Refinance might be what you need!

One of the biggest advantages of an FHA Streamline is that no appraisal is required!  For many homeowners the current value of their home is what has held them back from refinancing.  FHA allows you to use your original loan amount as the value regardless of what your home is worth today.

Advantages of FHA Streamline vs. Regular Refinance

  • Appraisals NOT Required
  • Income is not verified but Current Employment is confirmed
  • Your Mortgage needs to be paid as agreed the past 12 months
  • The refinance must have purpose – this means reducing your mortgage payment by 5% or more.
  • Loan Balance Can NOT Increase (only the FHA Up Front Funding Fee  + Pre-paid interest can be added to the new loan)*
  • Closing costs cannotbe added to the new loan, the only items that can be added on an FHA Streamline are:
    • Up Front Funding Fee & Pre-Paid interest (# of day’s interest you pay ahead on your HUD1).
      • Leaving you (the borrower) with 2 options:
        1. A “Borrower Credit”  from the lender towards closing costs & pre-paids (real estate taxes and homeowners insurance) to receive a “Borrower Credit” your interest rate would raise but only slightly or
        2. You can bring the money to close.

Additional Advantages!

Earlier this year the government made changes (Positive ones) to the FHA streamline refinance program.

  • The new fees/costs only apply to FHA loans originated prior to June 1st 2009 which are being refinanced through the FHA’s streamline refinance program.
  • For eligible loans, the upfront FHA Up Front Funding Fee is being reduced from the current 1% of the loan amount to .01%.
  • The monthly FHA insurance premium is being rolled back to .55% of the loan amount per year.  Down from the current 1.15% (soon to be 1.25%)

Lower FHA fees and lower mortgage rates mean lower monthly payments which, in theory, lead to fewer loan defaults.

To get the full fact sheet http://portal.hud.gov/hudportal/documents/huddoc?id=FACTSHEETHSGRelieftoVets.pdf

A Reduction yes REDUCTION in FHA fees for the FHA Streamline borrower!  These fees can save the typical FHA borrower thousands of $$$ per year!  And that is not taking into consideration taking advantage of lower interest rates!

Do you have an FHA Loan that was closed and funded before June 1, 2009?  What are you waiting for; contact me.

Till Then,

Cindy Seely

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

 

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