As of yesterday, the new FHA guidelines for streamline refinances are officially in effect. This is a huge move by FHA as it should allow millions of people to refinance their current FHA loans without incurring the high costs associated with the program.
At Chicago Financial, we’ve confirmed with 2 of our lenders that they are ready for these applications. Most property types and all occupancy types are acceptable. Here are some of the advantages of the new guidelines:
- In most cases, NO appraisal is required
- No income verification (although you must be employed)
- Lower credit scores are not an issue
- Upfront mortgage insurance premium reduced from 1.75% to .01%!
- Annual mortgage insurance premium reduced from 1.15% to .55%!
- Must have no late payments in the last 12 months
- Must have taken out the current loan on or before May 31, 2009
If you’d like to view the official FHA announcement you can do so here
If you have an FHA loan you should definitely be looking to refinance. 30 year fixed rates are well under 4%! Please contact me with questions.
Thanks…
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