Streamline Refinancing of your FHA Home Loan Mortgage

Posted: September 4th, 2009 | Author: admin | Filed under: FHA, Refinance Loans | No Comments »

One of the advantages of FHA financing is your ability to streamline refinance them without needing an appraisal.  Here are some quick FAQ’s on FHA streamlines.

Q:  How long do I need to be in the loan before I can streamline?

A:  There is NO time limit on how soon you can streamline.  If it has only been a month or two  you will need to either bring cash to closing OR have a new appraisal done with a higher appraised value to bump up the loan size.

Q:  Can I use a new appraised value or do I need to go off of purchase price?

A:  You can use the new appraised value immediately after closing.  If you get a great deal on a property this will help.  Although appraisal standards are MUCH tighter right now so if there is a big difference between your purchase price and appraised value a good explanation is required.

Q:  Do I need a full credit report to streamline my FHA mortgage ?

A:  No.  A “mortgage only” credit report is all that is required although we can use a full report.  The higher your score the better.  Many banks require a minimum 620 score.

Q:  Does my payment have to go down a certain amount?

A:  There is no minimum amount for your payment to go down.  Some people think it needs to be 50 dollars but that is not the case.

Q:  Do we need to provide income and asset information?

A:  No.  As long as your mortgage payments were made on time and your score is above 620 that is all you need to do.

Q:  Can I lower the term on my streamline and go from a 30 year to a 15 year?

A:  That depends.  If your payment increases by 20% or less then yes.  If it’s more you will likely need to verify income to show you are able to handle the payments.

Q:  I hear Adjustable Rates are really low right now, should I take one out?

A:  That, like many things in life, depends.  One of the benefits of an ARM is in addition to the lower monthly payments your principal balance actually gets paid off faster than with a 30 year fixed rate home loan so you build equity faster.  Because you can streamline FHA loans you can switch from an ARM back to a fixed if that is more comfortable.

If you have any other questions on FHA streamlines, Home Equity Lines of Credit or even a regular conventional fannie mae or freddie mac loan, just let me know and I will be happy to post the q/a on here.  If you’d like to appy for a streamline just give me a call at 651.210.9593.  Thanks much.  Jay Dacey.

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