Even when rates drop and there is significant potential for savings, many homeowners don’t want to go through the process of refinancing. They may simply be busy and worry they won’t have the time to devote to getting a mortgage, concerned that the offers they get in the mail or hear advertised on the radio are simply too good to be true, or they may feel that a refinance would be too costly at a time when money is tight.
Sharing information on the FHA Streamline Refinance can help ease each of these fears. The streamlined process means there are reduced documentation requirements and the borrower will have considerably less paperwork to complete and documents to chase down, as well as fewer financing costs.
FHA Streamline Refinance Basics:
- 600 Minimum qualifying credit score (580 for Correspondent Delegated).
- Available in 10, 15, 20, 25, and 30 year fixed terms – 5/1 Hybrid ARM option available.
- Eligible properties include 1 – 2 unit primary residences, 1 – 2 unit non-owner occupied residences, Manufactured Housing, FHA Approved Condominiums and PUDs.
- In order to qualify for the Streamline Refinance program the homeowner must benefit by receiving lower principal and interest payments.
- In some cases however an FHA Streamlined Refinance may be approved for the purposes of moving from an adjustable rate mortgage to a fixed rate loan.
- The borrower must have an existing FHA loan in good standing that they have had for at least six months (and have made at least six payments on).
Convert an ARM
In order to qualify for the Streamline Refinance program the homeowner must benefit by receiving lower principal and interest payments. In some cases, however, an FHA Streamline Refinance may be approved for the purposes of moving from an adjustable rate mortgage to a fixed rate loan. Even if the mortgage payment is unchanged or even slightly higher in the short term, the improved security afforded by a fixed rate loan is often seen as enough of a benefit to the borrower to qualify for the streamline process.
Photography by [Andrey Armyagov] © 123RF.com
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