Special offer

Meet Your Refinance Savior

By
Real Estate Agent with StoneHouse Realty, Inc

In a market when appraisal values make it hard to refinance, one option is still available.

FHA Streamline Refinance 

Normally to refinance, you must qualify by providing all of your income, banking, credit, and liability information as well as an appraisal.  With a FHA streamline refinance a property appraisal is not required.  However, the new loan amount cannot exceed the original loan amount. The FHA streamline mortgage programs are great if you like little paperwork and no hassles.

FHA Streamline finances can also be used to shorten a 30 Year Loan to a 15 year as well as to take one out of an FHA adjustable rate mortgage. The main qualification standard is a timely mortgage payment history.

The basic requirements of an FHA streamline refinance are that your present mortgage must already be FHA insured, your mortgage should be current (you can now finance the payment due for the first of the month you close), the loan should result in a lowering of your principal and interest payments, and no cash may be taken out.

FHA Streamline refinances generally do not require an additional appraisal to complete, which alone saves the borrower hundreds of dollars in fees and potentially thousands of dollars in interest due to the faster close, and the fact that you don't have to finance the cost of an appraisal over 30 years.

FHA Streamline Refinance is a mortgage that can reduce one's rate. It can reduce the amount of documentation and the need for an appraisal and credit check to speed the processing of the loan.

 

Comments (3)

Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com
Great idea for some borrowers
Jan 03, 2008 12:30 PM
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086
What we need less of, are those pesky Loan Officer's, pressuring us Appraisers for ridiculous values, shopping around for a cheaper appraisal, and bragging about how they don't need us for certain loan programs.  Surely, the Streamline Loan program has something to sell, besides the fact that it doesn't require an appraisal?  Wow, I just got 25 points for that, that felt good.
Jan 03, 2008 12:36 PM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Thanks, Scott.  Great Reminder.  I guess Gregg has some issues with lenders.  He just doesn't understand that appraisal are coming in low these days and clients still need to refi for whatever reason. (ARM Adjustment)  The FHA Streamline is a great option.
Jan 03, 2008 02:43 PM