My Favorite Martian, sorry loan. The FHA streamline refinance is one of my favorite loans because it helps existing owners and is easy to do. You must have an existing FHA loan to use this product. The FHA is the simplest way for owner to refinance their mortgages. The main feature of this program is that it does not require a home appraisal. FHA uses your original purchase price as your home's current value. It does not matter what your home is worth in today's market. What an amazing deal. Are you underwater on your mortgage? Do you owe more than your house is worth; no problem. Do you owe double what your house is worth? No problem. The FHA allows for unlimited loan-to-value on this program. If you live in Nevada please take one and pass to your right.
This loan is also one of the easiest programs to qualify for. The April update in 2011 of the guidelines waived most of the verification's required for typical mortgages.
The official guidelines are:
No employment verification
No income verification
No credit score verification
No appraisal
Lenders do vary their guidelines so check with your local lender for specific guidelines that may apply to your situation.
Have a friend that doesn't have a job, no income, bad credit, and no equity. They may be able to qualify for the FHA streamline program. Maybe all the talk about December 21st 2012 is true.
Why would the FHA have such a liberal program? Remember, FHA does not make loans they insure loans. Lower interest rates equate to lower monthly payments which mean lower default rates. Are you listening Fannie and Freddie?
Tomorrow we will continue to look at this amazing program.
Who in the world would be brave enough to punch Darth Vader's wife?
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