FHA Streamline Refinance - FHA Streamline Mortgage

Late Payments And The FHA Streamline Refinance

August 10, 2011 By FHA Streamline Refinance Leave a Comment

With the current recession now dragging on for years, many people have had a few credit problems and been late on at least one of their monthly bills. And if you are an FHA borrower who has an FHA loan, chances are you may have noticed that interest rates are at all time lows and probably much lower than when you took out your mortgage when you bought your home.

Which leaves many people asking the question:

Can I refinance with the FHA streamline refinance if I have had late payments in the past?

FHA Streamline Refinance and Late Payments: The Rules

The rules of whether or not you can have late payments and still do an FHA streamline refinance vary by lender. Some lenders may allow you to have one 30 day late payment, others will allow up to two 30 day late payments and perhaps even some will allow you to have up to 3 30 day late payments and still participate in the FHA streamline refinance program.

And if you have had a late payment that is outside of the last 12 months, chances are good that the lender will not count those late payments against you other than the damage it did to your credit score.

FHA Streamline Refinance: What To Do If You Have Had Late Payments

If you have had at least one late payment in the last 12 months, the absolute best thing you can do is to shop multiple lenders and find out which lenders will allow you to have a late payment or two and still participate in the FHA streamline refinance program. Shopping multiple lenders will also help you be sure that you get the best deal possible and get the lowest rate and fees on your loan.

Start below and find the best lender to help you with your FHA streamline refinance today.

FHA Streamline: Recently Listed Properties

July 1, 2011 By FHA Streamline Refinance Leave a Comment

Recently Listed House Rules

When considering an FHA streamline refinance, one of the things a lender will look at is whether the home has been on the market recently.

Cash-Out refinances are not eligible until the property has been off the market and the listing canceled at least 180 days prior to the origination of the loan.

A copy of the canceled listing must be in the file and a current multiple listing service search must be done to verify the property is not currently listed by a different agency.

To be eligible for a rate and term refinance, properties previously listed for sale must have been off the market and the listing canceled at least 1 day prior to the application date of the loan.

Property must be off the market and listing expired or cancelled for a minimum of one day.
The application must be executed after the one day expiration/cancellation period;
The appraisal must confirm the home is not currently listed on the MLS;
The appraisal must confirm the home is not publicly offered for sale by owner;
The appraisal must confirm the listing has been withdrawn or expired;
Evidence the borrower is occupying the property; and
Explanation letter from borrower on intent to occupy, reason for listing the home and why they are now
refinancing.

When doing any kind of FHA refinance – including the FHA streamline, all of the above requirements MUST be met and documented in the file for the transaction to be eligible for rate and term refinancing.

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FHA Streamline Refinance Explained

January 17, 2011 By FHA Streamline Refinance Leave a Comment

Here is a simple video about the FHA streamline refinance program.

FHA Streamline Refinance Highlights

No appraisal required
No employment verification (verbal only, no income required)
Existing loan has to be an FHA loan
Payment history for the last 12 months must be clean
Mid credit score must be 640 (with this lender)
No cost FHA streamline options available

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How Many Times Can You Refinance With The FHA Streamline Refinance?

August 29, 2009 By 1 Comment

Question:

How many times can someone refinance their home with the FHA streamline refinance mortgage program?

Answer:

As many times as it makes sense.

Often, when interest rates trend downward, it can make sense for someone to refinance their mortgage multiple times within a relatively short period of time. For example if interest rates go from 8 percent to 5 percent over a 2 year period of time, it may make sense for someone to refinance their 8% mortgage to 7% and then 6% and then 5%. Of course, it might not make sense, but it might — and it all depends on the numbers.

This is why there is a test called the “net tangible benefit test” so that your loan officer can make sure that you are refinancing and that you can reasonably make sure that the benefits of refinancing outweigh the costs that are associated with refinancing.

The FHA streamline refinance program is no exception — as long as you pass the net tangible benefit test, you can participate in the FHA streamline refinance program as often as you it makes sense — even if you have participated in the FHA streamline refinance program recently. If your case can pass the net tangible benefit test, then you have the green light for the FHA streamline refinance program… or at least as far as FHA is concerned you do.

Whether it makes sense to you is a different story though.

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Can You Do An FHA Streamline With 3 30 Day Late Payments?

July 25, 2009 By 2 Comments

The FHA Streamline refinance program is designed for FHA borrowers who are in “good standing” to be able to refinance their FHA mortgage with as little documentation as possible. One of the most popular questions about whether or not someone is eligible has to do with “how many late payments can someone have before they are not eligible for the FHA streamline refinance program?”

And the answer is…

It depends.

It depends on the lender.

It is possible that a loan officer at Lender A will tell you that you can’t have any 30 day late payments on your mortgage in the last year.

It is also possible that another loan officer at Lender B will tell you that you can have only one 30 day late payment on your mortgage in the last year.

And it is even possible that yet another loan officer at Lender C will tell you that you can have up to two 30 day late payments on your mortgage in the last year.

If you have more than two 30 day late payments in the last year, I am not aware of a lender who will allow you to participate in the FHA Streamline refinance program – but that doesn’t mean it is possible.

Because after all — how many 30 day late payments that you can have with the FHA streamline refinance program is really up to the individual lender.

Isn’t it interesting to see how many different ways the words “good standing” can be inturpreted?

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FHA Streamline Refinance: No Credit Score Required

April 8, 2009 By 2 Comments

As the credit crisis has tightened, many lenders have started requiring a certain credit score (580, 620, etc.) if you wanted to participate in the FHA streamline refinance program. Many lenders have… but at least one lender has not.

You see – the FHA streamline refinance program was originally designed to allow people who are currently in an FHA loan to be able to lower their interest rate and get a new FHA loan with as little hassle as possible. This is where the term “streamline” comes in – because the documentation is supposed to be minimal — or streamlined.

So – when a lender tells you that a minimum credit score is required on an FHA streamline refinance, it is not FHA that is setting up that rule, it is the lender who has that rule. FHA will insure a streamline with no credit score – only a verification that you haven’t violated the criteria for late payments in the last 12 months.

The 3 main criteria that anyone must meet in order to be eligible for the FHA streamline program are:

You must live in the property

You can’t have more than 2 30 day late payments on your loan in the last 12 months

The benefits of the transaction must outweigh the costs of the transaction – also known as the “net tangible benefit” test.

Can the FHA streamline program help you lower your mortgage payment and put you in a better overall financial situation? Be sure to speak with a FHA streamline expert to find out.

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Arizona FHA Streamline Refinance: Rates Change All The Time

March 5, 2009 By Leave a Comment

When shopping for a loan officer to help you with your FHA streamline refinance, be sure to ask him how your interest rate will be determined. Interest rates are changing multiple times per day and it is important that you are aware that whatever the interest rate is when you first start talking about your FHA streamline refinance may not be the one that you end up getting.

Why?

Because the interest rate that you will end up getting with your FHA streamline refinance is the one that is “locked in” when your loan officer actually locks your FHA streamline refinance with the investor.

You can check the Arizona mortgage rates that are posted each morning – but remember, rates change multiple times per day and many times for the better… so be sure to be in constant contact with your loan officer once you start the paperwork for your FHA streamline refinance.

And remember – nothing is final until you have signed the final paperwork for your FHA streamline refinance – you can change lenders at any time. If you have questions during the FHA streamline refinance process, and your loan officer isn’t answering them – it might be a good idea to switch lenders!

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FHA Streamline Program: Many Lenders Now Require Minimum Credit Scores

February 26, 2009 By 2 Comments

The FHA streamline program was designed so that people were in FHA loans could take advantage of lower interest rates when they were available without having to completely re-qualify for a new loan. This meant that there was no credit-score requirement for the FHA streamline program, the only thing that lenders required was a “verification of mortgage” where they could verify that you had made your last 12 months payments on time.

Now, some lenders are changing this.

Some lenders now require that you have a minimum credit score when going through the FHA streamline program – some require it to be 580, and some are even requiring that you have a minimum of a 620 credit score.

Notice that we used the word “some” lenders.

Not all lenders are requiring that you have a minimum credit score when you go through the FHA streamline program – so if your lender is one of the ones who is starting to require it and you have a credit score that doesn’t meet their criteria, be sure to ask another loan officer if they can help you. There are still a handful of lenders out there who do not require a credit score when going through the FHA streamline program.

Is your lender telling you that you don’t have good enough credit to participate in the FHA streamline program? Contact the FHA streamline experts at 480.374.0303 and lower your monthly payment with the FHA streamline program – without needing a credit score to qualify.

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FHA Streamline Refinance or Loan Modification – Which Is Better?

February 3, 2009 By 1 Comment

Many people are just starting to hear the term “loan modification” and wondering if it is a viable option to get into a better loan program. At the same time, many people who are in FHA loans are wondering if the FHA streamline refinance program will help them lower their interest rates and monthly mortgage payment.

Which is better – a loan modification or the FHA streamline refinance?

It depends.

Each situation is a little bit different, but in general, I would say that it mostly depends on two things:

Are you currently late on your mortgage payments
Do you currently owe a *significant* amount of money more than what your house is worth

If you are currently late on your payments, loan modification is better. If you owe *significantly* more than your house is worth, loan modification is better.

Why?

First, in order to participate in the FHA streamline refinance program, you can’t have more than two 30 day late payments on your mortgage in the last 12 months. AND you must be current on your mortgage payments. So if you are currently late on your mortgage payments, loan modification is a better option.

Second, if you owe significantly more money on your home than it is now worth, one of the two best ways to get a loan amount that is 95% of what the current value on your home is, is to go through the loan modification process.

For questions about the FHA streamline refinance program, make sure you speak with a FHA streamline refinance expert. Or, find a list of loan modification companies who can help you possibly get your loan modified.

The FHA streamline refinance program or a loan modification… which is better?

It depends!

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FHA Streamline Refinance: To Qualify For A FHA Streamline Refinance, You Must See A "Net Tangible Benefit"

February 2, 2009 By 1 Comment

The FHA streamline refinance program is very popular right now – because interest rates are lower than they have been in recent years and more people are in FHA loans than in the past because of the elimination of other loan programs.

In order to participate in the FHA streamline refinance program, there are 3 criteria that must be met:

The property must be owner-occupied (no investment properties allowed)
The borrower can’t have more than 2 thirty-day late payments on their mortgage in the last 12 months
The loan scenario must benefit the borrower – also called a “net tangible benefit” in the mortgage world.

FHA Streamline Refinance: Net Tangible Benefit?

The net tangible benefit test simply means that the benefit of doing the transaction outweighs any costs that are associated with the loan. As you know, any time that you go through with a transaction on something as large as your home, there are costs associated with the transaction and FHA wants to be sure that you don’t put yourself in a spot where those costs are outweighing the benefits.

There are various closing cost alternatives with the FHA streamline refinance program – such as no out of pocket closing costs or even no closing costs (where you accept a higher rate and allow the lender to pay your closing costs) but no matter what the scenario is, it must pass the net tangible benefit test.

To find out if the FHA streamline refinance program can benefit you, be sure to contact an FHA streamline refinance expert and ask them about the net tangible benefit test is something that you can pass in order to qualify for the FHA streamline program. 888-448-2669.

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