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FHA Streamline Refi

What Is The FHA Streamline Refinance Program?

The FHA Streamline Refinance program is designed to help borrowers refinance with less paperwork. According to the FHA , it’s the amount of processing and underwriting that is reduced with a streamline loan and not necessarily the costs. However, certain borrowers do enjoy reduced fees associated with these kinds of loans. When rates go down, some current FHA borrowers can use this program to reduce the monthly principal and interest payments they make on their FHA mortgages. And streamline borrowers can often eliminate the risk of the pending rising interest rates of their adjustable rate mortgages (ARM).

Some basic requirements must be met before you can use an FHA Streamline

  • Your loan must already be FHA insured
  • You must be up-to-date on payments
  • You must see tangible benefits like a lower monthly payment or an ARM-to-Fixed result
  • No cash out allowed
  • An appraisal may or may not be required

Here are some examples of “tangible benefits” the FHA talks about:

  • Your total monthly payment is reduced by at least 5%, or
  • You switched from an ARM to a fixed-rate loan and only increased your interest by 2%

Here are some allowable uses for streamline refinancing:

  • No Cost Refinances
  • ARM to Fixed-Rate Refinancing
  • ARM to ARM refinancing
  • Fixed-rate to ARM refinancing

For help getting started, contact one of our experienced professionals today at 1-866-663-0826.

Why Do Some Streamlines Cost Less?

Certain FHA Streamline Refinance transactions qualify for decreased upfront mortgage insurance premiums. FHA borrowers whose loans were endorsed (usually within 60 days of closing) on or before May 31, 2009 can get reduced rates on upfront mortgage insurance premiums (UFMIP) and annual mortgage insurance premiums (MIP). UFMIP for qualifying loans is just .01%. And, annual MIP is .55%.

A reduced rate FHA STREAMLINE refinance loan from iFreedom Direct® may include all of the following:

  • Relaxed qualifying
  • No origination fee
  • No appraisal
  • No closing costs
  • Title fees paid by us
  • Quick closing

These attractive features can help select borrowers take advantage of the benefits of FHA streamlines at reduced rates. Look at this example to see how much qualified borrowers can save:

Reduced UFMIP for a loan endorsed before May 31, 2009 Base loan amount of $200,000 x .01% = $20

Standard UFMIP for a loan endorsed on or after June 1, 2009 Base loan amount of $200,000 x 1.75% = $3,500

The reduced UFMIP helps qualified borrowers save significantly upfront compared to borrowers who must pay the standard UFMIP. If you are a current FHA borrower whose loan endorsed on or before May 31, 2009, you could really stand to benefit from a reduced rate streamline refinance.

To get started on your reduced mortgage interest FHA streamline refinance today, call 1-866-663-0826.

Can Any Lender Do My Streamline?

It’s a common belief that FHA borrowers must ask their current lender or loan servicer to provide them with Streamline services. In fact, some lenders don’t even offer this type of process. You can choose any lender to do your Streamline refinance as long as they are approved for Direct Endorsement (DE) by at least one Homeownership Center (HOC), and licensed in your property’s state.

Appraisal Necessary or Not?

FHA does not require an appraisal on streamlines. But, lenders may process these types of refinance loans with or without an appraisal. Often, what’s going on in the housing market can affect a lender’s need for an appraisal.

If an appraisal is done, FHA also does not require necessary repairs before streamline refinances can close, excepting the removal of lead-based paint. Again, lenders may have different requirements that necessitate repairs be done as a condition of the loan.

How Much Income and Credit Verification is Needed?

FHA does not require a credit report or income verification unless it’s determined that you need a credit qualifying streamline refinance. The lender, of course, is making the loan and has the right to require more as part of its credit qualifying requirements. Often the lending climate dictates how much credit and income qualifying there may be on a streamline loan.

Can I Roll In Costs?

Lenders can offer streamline refinances with costs or no costs. So what does this mean exactly?

  • No Cost Streamlines have no out-of-pocket expense, but a slightly higher interest rate
  • Streamlines with costs have out-of-pocket expense, but typically a slightly lower interest rate

Which loan a borrower prefers depends on what’s vital to the borrower at the time. For some, the lowest possible interest rate is most important. Others don’t want to pay anything at closing. Let your lender know which you prefer.

Plain and simple, FHA does not let lenders roll costs into the streamline loan. So “no cost” refinances have higher interest rates, and it’s from this premium that the lender pays borrowers’ closing costs.

Is An FHA Streamline Is Right For YOU?

If your loan does not qualify for reduced UFMIP or MIP, you could still benefit from an FHA streamline refinance. Remember, the program requires fewer documents and underwriting to qualify. Many streamline borrowers close very quickly and start realizing savings faster than with standard rate and term refinancing methods.

Talk to an experienced loan professional now about your refinancing goals. Call us at 1-866-663-0826.

FHA Streamline Refinance From iFreedom Direct

A low-to-no cost FHA STREAMLINE refinance can be obtained by current FHA borrowers who’ve kept current on their payments. Our FHA Streamlines have relaxed credit and income qualifying, no origination fees, require no appraisal in most cases, no closing costs and typically close fast. We can help borrowers understand the best way to use this kind of refinance loan. If you have a higher interest rate than the current going rate, or you want to reduce your monthly payments, then a streamline may be for you. Again, the program is not intended to provide cash out for borrowers.

Streamlining can be the fastest, simplest and often the most economical way to refinance your existing mortgage. When the conditions are right, an FHA Streamline can assist borrowers in getting a better interest rate, lower monthly payment or other tangible benefit without the hassle of a regular rate and term refinancing.

To get started, contact us or call us today at 1-866-663-0826.

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