FHA loans are for owner-occupied properties. This is pretty common knowledge. What if we said you could use it on a non-owner occupied property? It is possible. You have to know the loopholes, though. The basic fact is FHA loans are for owner occupied properties. The FHA designed the program to help lower income families qualify for financing. It’s stated in their rules that you cannot use FHA financing for an investment or second home. However, you can use the FHA Streamline program for … [Read more...]
How to Qualify for the FHA Streamline With no Income Docs
You need income to qualify for a mortgage. What if your income isn’t very consistent? What if you changed jobs? Are you out of luck refinancing your FHA loan? The good news is you can still refinance. The even better news – you may not need to verify the money you make. The FHA Streamline makes this possible. What is the FHA Streamline? The FHA Streamline helps current FHA loan holders to secure a lower rate and/or payment. The program requires very little documentation. It’s a fast program … [Read more...]
What are the Common FHA Streamline Closing Costs?
Do you want a lower mortgage payment? You can get it with the FHA Streamline loan. You don’t need to verify your income or the value of your home. It can be done quickly and save you money. Some borrowers lower their interest rate. Others save with today’s lower mortgage insurance rates if their loan is from before 2015. Either way, you pay the FHA Streamline closing costs. Here we look at the costs and how you can minimize them. Understanding the FHA Streamline Costs Like most other … [Read more...]
Determine if a FHA Streamline is Worth it for You
The FHA Streamline loan offers many benefits. Not only can you refinance to lower your interest rate, but you can also do it without very much verification. The FHA does not require you to verify your income, the value of your home, or even your credit score. It almost sounds too good to be true! All you have to provide is proof of timely mortgage payments over the last 12 months. It sounds perfect, right? Before you jump in headfirst, there are a few things you should consider. First … [Read more...]
Eliminate Mortgage Insurance with the FHA Streamline
The FHA Streamline Refinance has many benefits. The most obvious is the chance to lower your payment without a credit check or appraisal. A benefit you may not be aware of though is the opportunity to eliminate mortgage insurance. The date of your refinance will determine if this is actually the case for you. If it is not, do not worry, there are still ways to get rid of this insurance, which often becomes lifetime insurance for some borrowers. What is the FHA Streamline? The FHA Streamline … [Read more...]
How Long Does FHA Streamline Refinance Underwriting Take?
The FHA Streamline Refinance is a great way to lower your interest rate or save money every month. The simple refinance program requires very little from you. Underwriting is not nearly as in-depth as it was for your original FHA loan. Of course, the loan still needs to go through the proper channels to get approval. So the big question is, how long does it take? Of course, there is no straightforward answer – it depends on the lender you use. Generally, you can expect between 3 and 6 weeks to … [Read more...]
How to Solve Your Most Common FHA Loan Approval Woes
An FHA loan is a commonly-sought mortgage program by potential borrowers who would like to get a home loan but have problems either with their credit score or getting enough money to pay the conventional down payment requirement. An FHA loan is one of the housing programs established by the government to aid a significant chunk of the borrower market who cannot get a conventional mortgage. Because many lenders shy away from the risk of these types of borrowers, the FHA stepped in to cover for … [Read more...]
Are You Entitled to an UFMIP Refund When Streamline Refinancing?
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...]