Do you have an FHA insured mortgage on your home? If so you may have the opportunity to refinance with an FHA streamline refinance. The FHA streamline refi makes refinancing easy for Florida homeowners. Unlike other mortgage refinance options, the FHA streamline refinance program offers Florida borrowers with an existing FHA mortgage a new FHA-insured home loan without requiring an appraisal or any documentation of income or assets. Furthermore, depending on when the current loan was taken out, lower mortgage insurance fees may be available to the borrower. FHA recently announced lower reduced mortgage insurance costs last January.
To be eligible for a FHA refinance, applicants much have the following:
- Your current mortgage must be FHA-insured, originally closed as a FHA loan. It does not matter who the current mortgage servicer is, or who you make your payment to.
- You must have made on-time mortgage payments for the past 1 year.
- Your FICO credit score has to be at least 620 or higher.
- You cannot have refinanced within the past 210 days.
If you are a Florida or Georgia homeowner and meet these guidelines , you can reach out to us today by calling ph: 800-743-7556, or just submit the quick Info Request Form the website.
In addition to various individual mortgage lender/bank requirements, you need to meet the FHA “net tangible benefit” requirement, which says that refinancing will financially benefit you and help you avoid future mortgage rate increases (refinancing from an adjustable rate mortgage to a fixed-rate mortgage works for this) or will reduce your total monthly payment – including principal, interest, and mortgage insurance – by at least 5%. The interest rate doesn’t have to drop by 5% – just your payment.
Florida FHA Streamline Refi Benefits:
Like any insurer, the FHA charges premiums to cover its liabilities. As a homeowner, you pay these premiums in the form of an upfront payment and recurring monthly fees. As of June 2012, a standard FHA refinance loan upfront premium is 1.75 percent of the loan amount. The monthly fees amount to 1.25 percent of the outstanding balance on an annual basis. The FHA altered the pricing only for streamline refinance loans used to replace FHA loans issued before March 31, 2009. You now have to pay only a 0.01 percent upfront premium and annual premiums that are equal to 0.55 percent of the loan amount. This means you could save several thousand dollars with a streamline refinance versus a standard FHA loan. Read more about the latest FHA mortgage insurance changes here.
No New FHA Appraisal
On a standard FHA or conventional refinance loan, your lender orders an appraisal to ensure that your home’s value exceeds the loan amount. With a streamline refinance mortgage, the lender uses the same appraisal that you used when you first financed the home. This means you can refinance even if your home’s value has plummeted since you bought it. It also means you avoid paying $450+ to cover the cost of a new home appraisal.
Fast Loan Processing Time
From the time a lender orders an appraisal, it normally takes a few weeks before the appraiser finishes the report. Since you don’t have to wait on a new appraisal, FHA streamline refinance loans are much quicker to process. Additionally, the FHA doesn’t require your lender to check your credit report or to verify your income. Reduced paperwork means a faster turnaround time, although your lender does have the right to check this information to see if you meet its own eligibility guidelines. FHA streamline refi loan often close in as little as 2-3 weeks.
With a standard FHA loan, you have to conduct any safety-related home repairs before you can close on your loan. With a streamline refinance loan, you have to remove lead paint from your home, but you don’t have to deal with other repairs. This speeds up the closing process. Some lenders may require you to conduct other necessary maintenance on your home, but any such requirements are mandated by your lender rather than the FHA.
FHA streamline refinance loans offer you a way to lower your housing expenses. You can only refinance a fixed-rate FHA loan with a streamline refinance mortgage if the new loan means a reduction in your monthly principal and interest payments. The only way your payments can increase is if you refinance from an adjustable-rate loan (ARM) to a secure fixed rate 15 or 30 yr mortgage. Either way, you benefit because either you have a lower payment or you escape from the uncertainty surrounding adjustable rates. With other types of refinance loans, fees could cause your payment to rise.
FHA mortgage interest rates are low, in addition, mortgage insurance costs have been reduced. Now maybe the right time to see if the FHA streamline refinance is right for you. Questions? Please call us 7 days a week at ph: 800-743-7556, or just submit the quick Info Request Form on this page.