Don't Be Quick To Turndown a Loan

Just last week a client was referred to me by reading one of my blog posts.  The reason he was searching for a local lender is because he tried to get approved in refinancing his mortgage from an 8% rate.  The lender he tried to go with did not even bother calling the client back after pulling his credit.  This is a sign that usually the client had qualifications lower than the minimum and the loan officer decided not to call the client back.

However, I work with the client till the end even if they don't qualify now, I will try to find a way to help them work on their credit or finances so they can be ready down the road.  Customer for life and not a customer for right now as I always say.  So when working with the client I have came to find out that he had scores under 550 but also had a FHA loan insured.  Under FHA Streamline guidelines I was able to refinance my client with...

1.) No Appraisal Necessary

2.) No Credit Check

3.) No Income/Assets Check

This is a great way to lower your rate and payment even if you are upside down in equity, having trouble verifying income or even having trouble with low fico scores.  Below are the guidelines for a FHA Streamline Refinance.  More information via HUD on the FHA streamline can be found here. 

• The mortgage to be refinanced must already be FHA insured. 
  
• The mortgage to be refinanced should be current (not delinquent). 
  
• The refinance is to result in a lowering of the borrower's monthly principal and interest payments. 
  
• No cash may be taken out on mortgages refinanced using the streamline refinance process.