This might date me somewhat but I want to draw your attention to an event that happened with very little fanfare of discussion. It is a further example of the change that surrounds us daily and how it goes unnoticed.
November 17, 2009 marked the end of the FHA Streamline refi. Although technically we still have a FHA Streamline product here are a few of the changes:
Old FHA Streamline allowed for No appraisal, no max LTV, no income verification, no asset verification, credit scores unimportant, fast closings. If you had an FHA mortgage and wanted to lower your payment without going through the entire verification process you could. It was a very consumer friendly product.
New FHA Streamline allows for a new appraisal (not required but "advised"), 97.75% max LTV, income verification, asset verification, credit scores do matter, must be able to qualify, no fast closings.
In 1988 FHA eliminated its non-owner occupied loans. Then in December 1989 FHA eliminated its non-qualifying assumable mortgage. I can remember the discussions that took place among loan officers, how this would change the landscape of FHA loans, the advantages of FHA mortgages. Well, 20 years later it turned out FHA probably did the right thing and the program has continued to assist buyers with limited cash on hand and good credit. Somehow I can't help but think the impact of the "New FHA Streamline" will have a different affect. How different, only time will tell.
HAVE A GREAT DAY!!!
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
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