The FHA said the upfront portion of the mortgage insurance premium (UFMIP) paid is not refundable. But there is an exception to this rule: when you refinance into another FHA mortgage. This UFMIP refund is very beneficial because it reduces the UFMIP on your new loan, lowering your base loan amount and your monthly payment in turn. Get help with your mortgage refinance.» UFMIP Refund When Refinancing If you are an existing FHA homeowner and refinancing into another FHA loan through a … [Read more...]
Defining Net Tangible Benefit in FHA Streamline Refinances
When you do an FHA streamline refinance, there must be something in it for you. This is called the net tangible benefit which is “a reduced combined rate, a reduced term or a change from an ARM to a fixed rate mortgage that results in a financial benefit to the borrower.” The showing of a net tangible benefit is an important, indispensable element in any FHA streamline refinance. Get in touch with a lender here.» Reduction in Combined Rate For starters, the lender is tasked to determine if … [Read more...]
Your Guide to Down Payment Assistance for FHA Loans
With an FHA loan, you can buy a home with as little as 3.5% down for the purchase price. That’s not all, you can seek assistance for your down payment and closing costs. These down payment assistance mechanisms clearly remove any hurdle to homeownership for first-time homebuyers and low- and middle-income households. Interested in getting a loan?» Finding Down Payment Assistance Back in the day, sellers or other parties with interest in the purchase transaction can fund the buyer’s down … [Read more...]
What Is the Maximum Loan Amount for an FHA Streamline Refinance?
At least with cash-out refinances, you know how much you can get based on the amount you plan to take out of your equity plus your outstanding loan balance. With streamline refinances, the maximum loan amount you can refinance for is subject to a number of factors, which we shall discuss below. Let’s help you find a mortgage lender to refinance.» Streamline Refinance Mortgage Limits To recall, the streamline refinance program administered by the FHA and coursed through lenders (i) aims at … [Read more...]
FHA Streamline Refinance’s Credit and Non-Credit Qualifying Options
The FHA Streamline Refinance does away with the usual voluminous documentation accompanying any refinancing transaction. And this streamline refinance program comes in two options: credit and non-credit qualifying. Let’s find out about their differences and similarities, and their overall implication to you should you choose either option. Do you qualify for an FHA streamline refinance?» Credit and Non-Credit Qualifying Guidelines Definition Non-Credit Qualifying This option does not … [Read more...]