This program works!
this is an opportunity for those who currently have an FHA loan to refinance into todays low fixed rate mortgages regardless of whether they have equity in their property or not. Here's why
there is no appraisal necessary
the lender is going to use the original purchase price of the property for determining value.
Here's the basic requirements;
it must be an FHA loan currently...FHA to FHA
the homeowner must pay their closing costs out of pocket, they cannot be rolled into the mortgage
this is not a "new" program or part of any attempt to address the current market conditions. The FHA has been offering streamline refinances for quite awhile, but it does nicely address the current market condition that many homeowners have balances exceeding the value of their home.
the basic premise of the FHA is that they want the homeowner to be able to access the low current rates and improve their position.
Check out the attached video...your gonna like this.