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| FHA REFINANCE: STREAMLINED REFINANCING If you have an existing FHA mortgage, we have good news for you! In April 2011, the Federal Housing Administration, as the government-backed insurer of mortgages most favorable to borrowers, loosened its guidelines. The FHA Streamline Refinance program's defining characteristic is that it does not require a home appraisal. Instead, the FHA will allow you to use your original purchase price as your home's current value, regardless of what your home is actually worth today. As long as your current FHA mortgage is in good standing and current, no income or credit qualifying apply. In the words, with its FHA Streamline Refinance program, the FHA does not care if you are underwater on your mortgage. In fact, the program encourages it. Even if you owe twice what your home is now worth, the FHA will refinance your home without added cost or penalty. Beyond the "no appraisal" part, though, an FHA Streamline Refinance mortgage is similar to most other loan products. It's available as fixed rate or adjustable mortgage; it comes with 15- or 30-year terms; and there's no prepayment penalty to worry about. The Streamline Refinance loan doesn't allow for cash out, but you may qualify for a standard FHA cash out refinance up to 85% LTV. If you do not presently have an existing FHA mortgage, you'll qualify for the standard FHA rate and term, no cash out refinance up to 97.75% LTV. Allow our expert FHA loan specialists to guide you through all the options! |
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