If your existing home mortgage is FHA insured, you can think of applying for an FHA streamline refinance program to refinance your house to lower interest rate. Less amount of paperwork is involved in obtaining an approval and no income verification or home appraisal is required. Besides, even the mortgage insurance premium will get reduced and monthly payments will be low.
FHA streamline refinancing is a fast, easy and hassle-free way for making monthly mortgage payments more affordable. The program even allows homeowners to convert current ARM home mortgages to fixed rate mortgages and vice versa despite having higher LTV ratios.Get Quick Approval
The FHA streamline refinance plan is meant to benefit homeowners who have FHA insured home loans. The salient feature of the FHA refinancing plan is that applicants are not needed to undertake new home appraisals. This has made the program extremely popular among borrowers as they get the chance to take advantage of significantly lower home refinance rates without hassles.
It is possible to qualify for FHA streamline mortgage refinancing even if your house has developed a negative equity. Participating lenders will approve your home loan refinance application even if you owe more on your home than its current market worth. Hence, there is little need to worry about your being underwater on present mortgage.
The “appraisal waiver” clause gives permission to refinance housing loans with unlimited LTV ratios. This means Arizona, California, Florida and Georgia homeowners that are the worst hit by the bursting of real estate bubble few years back can save their homes from possible foreclosures by qualifying for sustainable mortgage interest rates with FHA streamline refinancing.
To qualify for the FHA streamline refi, borrowers must meet some basic eligibility criteria. Besides, the FHA doesn’t permit lenders to add closing costs to the new refinance loan amount under the streamline refinancing program. And applicants must be current with existing FHA mortgages to get approved for the program.
Applicant must be current on existing mortgage payments for the past 6 months to enhance chances of securing an approval.
On getting primary FHA insured home mortgage loan, borrower can apply for streamline refinancing after a period of 6 months.
Applicant must be ready to pay loan costs on his own as equity cannot be cashed out for the purpose.
Refinancing with streamline FHA program must result in minimum 5% reduction in monthly payments or else applicant may be disqualified.