How Does Streamline FHA Refinance Work
The streamline FHA refinance program is designed to help homeowners lower their monthly mortgage payments. This program can also help to reduce the term of their loan, or switch from an adjustable-rate mortgage to a fixed-rate mortgage. In order to qualify for this program, homeowners must have a good payment history on their current loan and be up to date on their mortgage payments. In addition, they must also demonstrate a financial need for refinancing. If you think you might qualify for this refinancing program or want help to obtain it, you can consult with Moreira Team. Our team of experts will walk you through the steps one by one.
Types of streamline refinancing
Streamline refinancing reuses the original loan paperwork to allow quicker refinancing. There are two types of streamline refinance, with the only difference being that one requires an appraisal while the other does not. The non-appraisal streamline refinance does not require an EAD from the borrower, which saves on processing time. In order to qualify for this type of streamline refinance, the mortgage must be current with no 30-day+ late payments in the last six months, and no more than one 30-day+ late payment in the last 12 months.
Borrowers with an adjustable-rate mortgage (ARM) can also qualify for a streamline refinance, but they may need to provide additional documentation to prove that they have made timely payments on their mortgage. Irrespective of your mortgage status, we can work a way through to help you obtain streamline FHA refinance.
Eligibility criteria for streamline refinancing
The FHA streamline refinance is a great way for borrowers to take advantage of low-interest rates. However, there are several requirements that you must meet in order to be eligible.
● The borrower needs an existing FHA loan that is currently in good standing.
● The borrower must have made at least six months of timely payments on the loan.
● The new loan must result in a net tangible benefit to the borrower.
● The borrower needs to be employed and have a steady income.
● The borrower must complete an approved housing counseling program.
Do you meet all these requirements? If you do, you have a chance to get a streamline finance from the FHA.
Benefits of streamline financing
Here are some of the reasons why streamline refinancing can be beneficial for you:
● While there are many benefits to this type of refinancing, the two most important are the reduced paperwork and the lower interest rate. With this refinancing program, there is no need for a new appraisal or income verification, which means less paperwork for the borrower.
● Additionally, the interest rate is often lower than the rate on a traditional refinance, making it an easier and more affordable way to lower your monthly payment. If you currently have an FHA loan and are considering refinancing, streamline refinancing may be the right choice for you.
The Moreira Team is here to help you through the entire FHA refinance process. We have an experienced team that can help you at every step. Contact us today at 404-238-7888 and we will get started on your refinance application.
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