October 17, 2021

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Articles Tagged With: FHA Streamline Requirements

FHA Refinance Loans And Current Interest Rates

FHA Streamline Refinance Tips

Are you interested in a lower interest rate on your home loan? What about a lower monthly payment? Or perhaps you are in an adjustable-rate mortgage and are looking for a way out before your next rate adjustment? These are all motivations to refinance. You’ll read plenty online about what it means to apply for an FHA Streamline refinance, but what do you need to know aside from the things EVERY home loan website talks about? Yes, FHA Streamline Refinance loans are for existing FHA borrowers only. Yes, FHA Streamlines normally require the borrower to get a tangible benefit from the loan like a lower rate, a lower monthly payment, etc. Yes, FHA Streamlines have no FHA-required credit check or appraisal requirement. And yes, the lender is free to require | more...

 
Why did my mortgage payment increase

The FHA Streamline Refinance Loan: No FHA-Required Credit Check

FHA refinance loan options are looking more attractive to some borrowers with FHA loan rates still well below the three percent line at press time after some ups and downs in 2021. But the range of options confuses some.  What do you need to know about the Streamline FHA Refinance loan option compared to FHA cash-out refinancing or FHA 203(k) Rehabilitation Loan refinancing? Streamline FHA Loan Facts You Should Know First-time applicants may be surprised to learn there is no FHA-require appraisal. Your lender is allowed to require one, but if they choose to process your FHA streamline refinance without one, you’re spared the appraisal fee. Most FHA loans require a credit check and have a set of minimum qualifying scores. What about FHA Streamline? FHA Streamline loans allow your | more...

 
Time is running out for FHA mortgage loan relief

FHA Refinance Loan Options: Why You Should Consider A Streamline Refinance

Do you need to consider refinancing your current FHA home loan? Interest rates are still very low in the earliest weeks of 2021 and while there is no guarantee mortgage rates will remain quite this low for the duration of the year, now is a great time to consider your options for a lower mortgage payment via an FHA Streamline Refinance loan. Interest rates in the opening weeks of 2021 are still at the time of this writing below the three percent line for 30-year fixed rate government-backed mortgages such as FHA loans. A mortgage industry company, Black Knight, has issued a report that noting that at the end of January 2021 there were some 45 thousand people exiting home loan forbearance programs and another nearly 50 thousand loan forbearance | more...

 
Cash out refinancing

Do You Need To Refinance Your Home Loan?

2021 may be a very good time for some home owners to consider their refinance options. At the time of this writing, FHA mortgage loan interest rates are reported at a best-execution (ideal qualifications assumed) 2.34% by multiple sources, and FHA loan limits are higher in 2021 too making this a very good year to consider an FHA loan (even if it’s not a refi). Should you refinance with an FHA mortgage? You can refinance an existing FHA loan or a non-FHA mortgage; do you want a more competitive interest rate? Perhaps you want to get out of an adjustable-rate loan and into a lower mortgage rate than a conventional loan? Here are some scenarios you should think about when considering the options. Refinancing To Get A Better Interest Rate | more...

 
First Time Home Buyers: Improve Your Credit With Credit Monitoring

FHA Streamline Refinance Loan Rates

There are lots of online lending websites discussing interest rates for mortgage loans. But what do you need to know about FHA home loan interest rates and refinancing? If you want an FHA Streamline refinance loan, you will be applying for a refi loan that generally requires the transaction to have some tangible benefit to the borrower such as a lower monthly payment or a lower interest rate. When you shop around for lenders offering the best interest rates, remember that one very important factor applies; until you enter into a mortgage rate lock commitment with the lender, today’s interest rates will not apply to your loan. In other words, until you have a commitment in writing for the interest rate, daily and weekly rate fluctuations will apply. The mortgage | more...

 
FHA Loan Down Payment Rules

Streamline Refinance Loan Rules: Is Cash Back Permitted?

Do FHA Streamline Refinance Loans permit cash back to the borrower? Can you apply for “more” refinance loan than you need to pay off the original mortgage and take that cash at closing time? The FHA Streamline Refinance loan is for existing FHA mortgages; borrowers who have an FHA loan who want to refinance in order to get a financial benefit such as a lower payment, shorter loan term, or get out of an adjustable rate mortgage should consider this as an option. But is one of the financial benefits offered the ability to get cash back? FHA refinance loan options do include cash-out refinancing, intended for FHA and non-FHA loans alike. Let’s examine what the FHA loan handbook, HUD 4000.1, has to say about cash back to the borrower | more...

 
The New FHA Condo Rules

What Is An FHA Streamline Refinance Loan? Part Two

We have been discussing the question, “What is an FHA Streamline Refinance loan?” In our previous blog post on this subject we discussed what FHA Streamline Refinance loans are, including the fact that they are intended only for FHA-to-FHA transactions only, and have no FHA-required credit check. FHA Streamline refinance loans also generally require the borrower to get a lower payment, lower interest rate, or get into a fixed rate loan from an adjustable rate mortgage. There are some exceptions to this which you can discuss with your lender. Those are some of the basics about what FHA Streamline refi loans are. But there is also a list of things that streamline refinances are NOT. These loans don’t permit the same things that FHA cash-out refinance loans do. FHA Streamline | more...

 
2021 HECM Loan Limits

How Do You Refinance An FHA Loan? FHA Refi Options

How do you refinance an FHA loan? In our last blog post on this subject, we discussed the need to determine your financial needs and goals before examining the different types of FHA refinance loan options. Are you planning to stay in your home for the duration of the loan? Do you need to sell long before then? The answers to those questions will help determine which refi loan is right for you. But what ARE those options? FHA Cash-Out and No Cash Out Refinance Loans Borrowers who have existing FHA mortgages or even non-FHA home loans can refinance with either FHA Cash-Out refinancing or a no-cash version of the same. Cash out refinance loans permit the borrower to get money back on the transaction. Basically once your original mortgage | more...

 
FHA Home Loans And Interest Rates: What You Should Know About Low Rates

FHA Streamline Refinance Loan Requirements

FHA Streamline Refinance Loan requirements include having a tangible benefit to the borrower in the form of a lower interest rate, a lower monthly payment, shorter mortgage term, and/or refinancing into a fixed rate loan from an FHA adjustable rate mortgage. But there are other requirements for streamline refi loans above and beyond the “tangible benefit” rules. Did you know that FHA streamline loans have “seasoning” rules, too? Seasoning in this case means how long the borrower has been paying on the existing FHA home loan before the assignment of a new FHA loan case number for the refinance transaction. How long do you have to own your home before you can refinance with an FHA Streamline? HUD 4000.1, the FHA single family home loan handbook, states that on the | more...

 
When Is An FHA Loan Better Than A Conventional Loan?

FHA Refinance Loans: Payoffs and Buyouts

We’ve been examining the ins and outs of FHA refinance loans in our last few posts, but one issue we haven’t discussed yet is whether an FHA refinance can be used to buy out an existing title holder, applied for as part of an FHA short refinance, or to pay off land contracts. HUD 4000.1 has a list of the rules in these areas. Where short payoffs are concerned, the rules are fairly simple: “The Mortgagee may approve a Rate and Term refinance where the maximum mortgage amount is insufficient to extinguish the existing mortgage debt, provided the existing Note holder writes off the amount of the indebtedness that cannot be refinanced into the new FHA-insured Mortgage.” Do you need to refinance your existing mortgage in order to buy out | more...