If you have an FHA loan that was originated before May 31, 2009, then you could be eligible for the new changes that have gone into place on June 11, 2012. These changes can potentially help you better your current mortgage position through a refinance, depending on your individual scenario and overall plan for your property. It is important to understand if these changes can help you.
Rates are at ALL time lows right now, and, again, depending on your individual scenario (i.e. where you are in your current amortization schedule; when you are able to drop your current MI; your plans for the property, etc) a refinance may allow you to better the position of your mortgage; putting you in a better position to create more wealth over time.
The important item to understand is the qualifying date for the new FHA Streamline changes applies to loans that were “endorsed” by May 31, 2009 by FHA, versus the actual close date. The date of endorsement is the date when the loan is approved/insured by FHA (which happens after closing).
Needless to say, this endorsement date can sometimes be months after the actual closing. For example, a loan I was going to refinance under these new terms was closed back in 3/31/2009, but the endorsement date was not until 7/31/2009… which makes this FHA loan ineligible for a streamline refinance under these new changes… and ultimately made this refinance not make sense for these folks.
The endorsement date is something that the lender you are working with should be able to tell once they retrieve the FHA Case ID number for the existing loan. It will be important to know this as soon as possible, to save time for everyone involved. Let me know if you have any questions.