Since the real estate bubble burst, millions of Americans owe more on their homes than the current market value. Historically, being underwater meant borrowers couldn’t refinance unless they came up with the cash to cover their lack of equity.
But, with near-record-low interest rates, the Federal Housing Administration wanted to find a way to make it easier for homeowners to stay in their houses and reduce their payments. The FHA Streamline Refinancing program is one of the better answers to the dilemma.
FHA Streamline Refinancing Benefits
There are a lot of great things about this program. The best is that it does what it was designed to do. The program makes it easy for underwater home owners to refinance into lower interest loans that will dramatically reduce their mortgage payments.
FHA Streamline Refinancing allows borrowers to:
- Lower monthly payments.
- Reduce interest rates.
- Build equity faster.
- Pay off loans sooner.
The great thing is that the program helps home owners do that without requiring:
- A new appraisal
- Full credit report
- Income verification
FHA Streamline Refinance Eligibility
In order to qualify for an FHA Streamline Refinancing, borrowers must have financed the original purchase of the home with an FHA loan.
Beyond that, borrowers also need:
- To wait at least 210 days after their last loan closed and have made at least six mortgage payments before they can refinance.
- Have a perfect three-month payment history with no more than one late payment in a 12-month period.
- To see a net tangible benefit from refinancing, which typically means payments need to be reduced.
- Know that mortgage insurance premiums are higher when replacing loans endorsed after June 1, 2009 than for loans endorsed before then.
Apply for FHA Streamline Refinancing
The mortgage experts at Mortgage Solutions Financial are deeply familiar with the FHA Streamline Refinancing loan and how to help borrowers through the process. Contact our experts with any questions or to begin the application process.