FHA Streamline Refinance - What You Need To Know
Posted by Joe Peters in Uncategorized, tags: business, fha, fha streamline refinance, finance, loans, mortgage, real estate, refinance, UncategorizedKeeping your home is definitely the main priority. This is also what the rest of homeowners all over the country works hard for. For distressed homeowners, there are several options available like the FHA Streamline Refinance program. You can ask your local mortgage broker to help you out with this.
The FHA streamline refinance loans have been around for two decades already, and such a loan only refers to the documentation and underwriting that is conducted by a mortgage company. This is a great option for people looking to consolidate their mortgages and gain some freedom around the payments they need to make. Existing home mortgages are covered under the Federal Housing Authority, or the FHA.
Certified lenders, such as those recommended by your local mortgage broker, are guaranteed by the FHA to provide the necessary funds that will allow you to refinance your home. The FHA has prescribed guidelines to lenders for loan approval. These guidelines include income, credit and collateral (property appraisal/downpayment).
The guidelines are flexible, if you need to know. But these depend on compensating factors like low debt to income ratio and low loan-to-value ratio. This is a good option for people who are also at risk for credit default.
However, like any type of loan, FHA loans are usually given out to eligible borrowers with good to very good credit standing. But those with not so good credit need not despair. The FHA rules for streamlining also allow for these types of borrowers a chance to qualify, as long as their records must not show any declaration of bankruptcy in the last five years from the time of application.
Some technical requirements for an FHA loan include a verification of the mortgage payment history for the last 12 months (or the length of time the mortgage has been held). HUD’s Credit Alert Interactive Voice Response System (CAIVRS) need not be checked, but a check of HUD’s Limited Denial of Participation (LDP) and General Services Administration (GSA) exclusion lists. Also, a termite report is not a requirement under the FHA guidelines.
To know more about what the other terms and conditions covered by the FHA streamline refinance program, it would be best if you consult with your local mortgage broker.
Successful applicants have already experienced getting a break of up to several hundred dollars on their monthly payments from the FHA streamline program.
Have you been trying to locate the very best Utah mortgage broker to help you secure your next mortgage? We can help you with any types of home loan including a Utah FHA streamline refinance! Visit our site today to check our rates and to get your loan started!
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