The Federal Housing Administration is looking to make streamline mortgage refinancing more cost-effective and feasible for mortgage holders by reducing the fees that come with refinancing.
Pittsfield, MA -- (SBWIRE) -- 09/19/2013 -- Real-Estate-Yogi.com can help you learn more about the changes and tell you whether or not you are eligible.
1. What it Entails
2. Do You Qualify?
What It Entails
FHA Mortgages are common among homeowners, but should they have needed to refinance in the past, homeowners would find this process costly. In fact, the savings from the reduction in monthly payments may have ended up being cancelled out by mortgage fees. However, the FHA reduced the costs significantly for streamline mortgage refinance programs. Most of the mortgage fees are for insurance, and by lowering that premium, the FHA was able to significantly reduce refinancing costs, thus making it more feasible for people to refinance their mortgage.
FHA Mortgage Streamline Refinance Online Approval On Single Click!!
The FHA also asks for less action on the homeowner’s part during the refinancing process. The home does not have to be appraised, which helps homeowners who currently owe more of the mortgage than the value of the home. The FHA also does not ask for more documentation and paperwork then necessary, to simplify the process.
Do You Qualify?
It is much easier to qualify for an FHA streamline mortgage refinance, especially since it has recently become more affordable. Firstly, you must already have an FHA-insured mortgage that is up to date on payments. Secondly, your mortgage must have been endorsed by the FHA before June of 2009. Keep in mind that the mortgage deal may have been completed before June, but there is a bit of a lag before it may have been endorsed. This wait time could be up to 60 days.
There is a caveat to the “no-appraisal” rule. Your fha streamline refinance mortgage rate must decrease by at least 5%, otherwise you will need an appraisal. Same goes for if you take one person’s name off the title—this also negates your lack of appraisal.
In terms of credit, the FHA does not require a minimum credit score. Their goal is to help people in financial difficulties, after all. But specific lenders may have their own requirements for a credit score. Often, the minimum is 640. The FHA also does not require proof of income and employment, but again, this may vary with different lenders, as well as by state law.
About Real-Estate-Yogi.Com
If you want to learn more about the FHA’s Streamline Mortgage Refinance Program, www.real-estate-yogi.com can help you weigh the options. In addition to our online database, which connects you to experts in the real estate field, you can also reach us 24/7 by phone at 800-987-1397. Our associates are standing by to take your questions, or help you schedule a free consultation.