Recently in my St Petersburg mortgage business the phone has been ringing with clients talking about the mortgage interest rates being at all time lows. The most commonly asked question is "Can I refinance to a lower interest rate and reduce my current monthly payment?" Since most of the clients I have worked with obtained an FHA mortgage I am happy to provide a pre-qualification for an FHA Streamline Refinance.
FHA Streamline Refinances are easy loans with easy qualifications making for a smooth and easy transaction. To sum it up, I love FHA Streamline Refi's because they are EASY on both myself & the client and in most cases they provide a great monthly savings of around $100 or more if the rate is reduced by a 1 to 1.25 points.
Here is a list of some of the great benefits that the FHA Streamline Refinance has to offer.
No Minimum Credit Score - although most lenders want the score above a 580 to determine how to price the interest rate
No Proof of Funds or Payment Reserves Required
No Proof of Employment or Income - the employment and income section of the application can be left blank
No Repairs are Required - unless the appraiser notes there is chipping paint and the home is built before 1978 which would be a lead based paint issue
No Termite Inspection Required
New Parties Can Be Added to the Title Without Any Credit Checks
No Appraisal Required - if the new loan amount is lower than the original purchase price
An appraisal is required if the loan amount exceeds the original purchase price and the new loan amount can not exceed 97.75% of the appraised loan to value.
The mortgage underwriter will check the mortgage history on the existing FHA loan. All lenders will require a clean 12 month mortgage payment history. Some lenders will allow 1 times late with a strong letter of explanation and others will look further back than a 12 month mortgage history to determine the client's credit-worthiness.
A borrower can use the FHA Streamline Mortgage Refinance as soon as the home is insured by FHA as long as the new loan is a benefit to the borrower.
Apply now to determine if you're approved for a St Petersburg FHA Streamline Refinance.
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