FHA Loan -
FHA Streamline Refinance Mortgage
...............................................................................FHA Streamline Refinance is a mortgage refinance program HUD has
permitted since the early 1980's. The "streamline" refers only to the
amount of documentation and underwriting that needs to be performed by the lender, and
does not mean that there are no costs involved in the transaction. The basic requirements
of a streamline refinance are:
- The mortgage to be refinanced must already be FHA insured
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower's monthly principal and
interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
You may offer streamline refinances in several ways. We offer "no cost"
refinances (actually, no out-of-pocket expenses to the borrower) by offering a higher rate
of interest on the new loan (but still lower than your existing mortgage) than if the
closing costs in cash or financed. Instead of financing the costs into the loan, you are
financing them into the interest rate. From this premium, the investor credits most or all
of the closing costs that are incurred on the streamline mortgage refinance.
You may also streamline refinance and include the closing costs into the new mortgage
amount. This can only be done if there is sufficient equity in the property, as determined
by a FHA appraisal. Streamline refinances can also be done without appraisals, but the new
loan amount cannot exceed what is currently owed, i.e., closing costs may not be added to
the new mortgage with those costs either be paid in cash or through the premium rate as
described above.
Investment properties (properties in which the borrower
does not reside in as his or her principal residence) may only be refinanced without an
appraisal and, thus, closing costs may not be included in the new mortgage amount. The new
loan amount cannot exceed the maximum loan amount for the type of property and the area it
is located in.
If you currently have a FHA loan and are looking for
complete information regarding the FHA streamline refinance mortgage program, please go to
our dedicated website by clicking  Refinance up to 97% with a Government Backed Secure FHA Loan
Additionally FHA offers a "Cash-Out" refinance.
For details click here. ............................................................................... |
