New FHA Streamline Guideline Changes Went Into Effect Today.

Real Estate Agent with Evergreen Realty & Associates, Inc. BRE #01466683

This most recent FHA change is really good news indeed ... and plainly explained.  Take a look, and if you have a qualifying loan, more importantly, TAKE ADVANTAGE.  We'd be happy to refer you to a lender than can help you refinance your home mortgage.

Original content by George Souto NMLS #65149

As of today anyone with a FHA Mortgage that has an FHA Case Number that received Endorsement on or before May 31, 2009, can refinance their FHA Mortgage under the new guidelines.  Today the FHA Monthly Insurance (MI) reverted back from a 1.25 multiplier to a .55 multiplier, and the UpFront Premium from a 1.75% to .01%

Even with the interest rates as low as they have been refinancing has not been possible for many Homeowners for a couple of reasons:

  • Home values have dropped to a point that many properties do not have enough equity to be able to refinance. In many cases the value of the property is not only below what the homeowner paid for the property, but even below the remaining loan balance on the home.
  • The FHA Monthly Insurance (MI) increase from a .55 multiplier to a 1.25 multiplier, and the UpFront Premium from 1.000% to 1.750% greatly reduced the monthly mortgage payment savings to a point that it did not make since for a Homeowner to refinance.

With the changes that went into effect today, Homeowners with a FHA Mortgage that has a FHA Case Number that received Endorsement on or before May 31, 2009, can now receive the full benefit of today's lower interest rates.  For example:

  • The difference between a monthly payment on a $100,000 mortgage at a .55 MI multiplier, and a 1.25 MI multiplier is $58.34 per month.
  • The difference between a monthly payment on a $100,000 mortgage at a 1.75% UpFront Fee and a .01% UpFront Fee is $8.06 per month.

That is a total of $66.40 per $100,000 mortgage.  When that is added to the savings in the interest it can represent substantial savings.  Further the homeowner does not have to be concerned with the value of the property because NO APPRAISAL is required 

This will be a huge opportunity for many Homeowners with FHA Mortgage to finally take advantage of the lower interest rates.  Hopefully this news will get out to these Homeowners who are eligible to take advantage of the change in FHA Streamline Guidelines today for Homeowner with a FHA Mortgage that has an FHA Case Number that received Endorsement on or before May 31, 2009.  Below is the chart reflecting this change.



   Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or

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A lover of music, travel, languages, cultures and people, ANGIE NWANODI is the Founder and Principal of The ACG Group, Realtors®, an agent team practicing under Evergreen Realty & Associates, Inc.  Angie started in the real estate industry in 2000 as a Policy Analyst for a national nonprofit housing developer, eventually becoming its Director of Policy and having the honor of testifying before Congress on the preservation of affordable housing during her tenure.  Angie went on to start her own residential real estate practice in November, 2005.

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THE ACG GROUP, REALTORS® are distressed property experts with specialization in HUD, REO and Short Sales. As one of 54 California Local Listing Brokers for the U.S. Department of Housing and Urban Development (HUD) through PEMCO, Ltd., we offer training and community events for real estate brokers and agents, homebuyers and investors interested in mastering the process of buying a HUD Home.

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