FHA-Loans-Information

In today’s mortgage industry, there are a lot of interesting situations that have come up.  After the house bubble has burst, there are a lot of people finding that they are in need of a refinance and there are lots of different options for you.  One of the most common options is to do an FHA Streamline Refi.  

Though there are four main qualifications, it might still be in your best interest to try.  The FHA Streamline Refi Loan has become one of the most popular ways to refinance a mortgage loan.  One of the reasons it is so popular is because during the housing bloom of the late ’90’s and early 2000’s a lot of home mortgages were FHA Home Mortgages.  No the homeowners are looking for ways to lower their mortgage payments.

The four main qualifications or requirements for a FHA Streamline Refinance Loan are the following:  

1.  The first qualification is that the loan to be refinanced needs to be insured by FHA to begin with.  You can not do a FHA Streamline Rifi if your mortgage is not a FHA mortgage.  

2.  The loan also needs to be in good standing and cannot be delinquent.  

3.  The third qualification for an FHA Streamline Refi is the transaction should reduce your monthly principal and interest payment.  

4.  The last qualification is that there is to be no cash out as a result of this transaction.

The reason that an FHA streamline Refi is considered streamline is because the lender can often times lower your interest rate without even order an appraisal.  If you no longer need to wait for an appraisal, you can often cut at least three weeks off your waiting time.  This process should also cut down the amount of paperwork and underwriting that the lender needs to do, so you can refinance quickly and save even more money.

Since the lender does not to do another income verification, order an appraisal, and can often cut out a lot of the underwriting process, you do not even need to do the application in person, you might even be able to do this through the telephone or through the Internet.  

But aside from those obvious benefits, an FHA Streamline Refi can really benefit those that have pretty good credit and little to no debt.  Once the process is over and they have lowered their monthly principal and interest payment, they should have a little more money left over that can be used towards either paying off the house quicker or for other items like personal uses or even for extra home improvements.

If your situation qualifies you for this particular type of loan, an FHA streamline Refi could put you and your house in a much better position.  

Although the four above qualifications are a must the possibility of lower your mortgage certainly makes it worthwhile to check with a FHA Lender to see if you can save money.  The FHA Streamline Refi can put more money in your pocket which is certainly a good thing during these hard times!

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Many people today are struggling to make their mortgage payments. Many people took out loans that were risky a few years ago and the housing market collapse has caused the interest rates on those loans to go up resulting in many people being unable to keep up with payments. Over the past year or two, there have been record numbers of homes being foreclosed on, and there is no end in sight at this point.  Are you in this situation?  Here is hope for you and it is the FHA Streamline Refinance Loan.

You may be having trouble making your mortgage payment or you are just trying to find ways to reduce your monthly expenses.  Why waste money by paying a larger mortgage payment then you have to.

There are some ways for people to keep their homes and restructure their mortgage to make the payments work for them during these tough times. One of those options is an FHA Streamline Refinance Loan. With this type of refinance, the process is made very simple and there is much less documentation required. There are a few requirements that need to be met in order to obtain one of these loans.

The first requirement is that the current mortgage is already an FHA loan. If the original mortgage was made with a different financing group, then that home would not be eligible for this loan. With the FHA Streamline Refinance Loan, the goal is for the homeowner to lower his or her monthly payment to an amount that is more affordable for them in the short term. Many times, these loans are referred to as having no out of pocket expenses. This can happen in one of two ways.

The first way for the homeowner to avoid any out of pocket expenses is to take a slightly higher interest rate from the lender and have the lender pay the closing costs. While this can save some money up front, it is important to recognize any longer term impact a higher rate might have.

The second option with an FHA Streamline Refinance Loan is to simply roll any closing costs into the new mortgage. This can only be done if there is enough equity in the home to make it work. This would require having an appraisal done on the home.

A final guideline with the FHA Streamline Refinance Loan is that the new loan cannot exceed the amount of the original loan. These loans are not set up to allow the homeowner to take any cash out on a home equity line of credit.  This program is for just reducing your mortgage payment not adding more to the principal amount.

With so many people sitting on FHA loans, this program is definitely worth a look to provide some much needed cash flow each and every month.  This may be the way to save your home from the foreclosure process.  If you want to lower your mortgage payment you need to check into the FHA Streamline Refinance Loan.

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Comment:  The author of this article goes into detail the differences between a FHA Streamline Refinance Loan and a Home Loan Modification. 

If you have mortgage loan insured by Fannie Mae or Freddie Mac you will use a home loan modification plan and if you have a mortgage loan insured by FHA you will use a FHA Streamline Refinance Loan.

Home Loan Modification Vs FHA Refinancing Programs

Are you among the millions of U.S. homeowners hit the hardest by the current financial crisis in America? Are you concerned that you can’t make your monthly mortgage payments anymore? If you’re nodding your head, you need to hurry to a financial counselor today and ask about home loan modification vs. FHA refinance.

Loan modification and FHA refinance are helping hundreds of thousands of homeowners prevent foreclosure when they can’t pay their mortgages.

Which one is best for you depends mostly on who backs your loan. To learn about your loan insurer, call your lender and ask.

Most loans are insured by the FHA, Freddie Mac, or Fannie Mae. None of these three organizations are actual lenders, but they insure the loans and guarantee the full amount of the loan. Doing this lessens the risk for lenders and helps borrowers get lower interest rates.

How can you tell apart an FHA loan and a Fannie or Freddie loan? From the outside, you really can’t.

There isn’t much difference between the loans, aside from who happens to insure them. A lot of homeowners don’t even know who insures their loan, and that’s because they rarely need to know that information. When they do need it is when they want to modify their loan to decrease their monthly payments.

If your loan is a Fannie or Freddie loan, then you could be eligible for President Obama’s Making Home Affordable mortgage loan modification plan. If you have got an FHA loan, then you should look into the HOPE for Homeowners plan, which is a special FHA plan to refinance mortgages through equity sharing.

Refinancing with HOPE for Homeowners with FHA loans opens up the possibility of refinancing to thousands of individuals who didn’t used to qualify under old refinancing laws. Decreasing house prices have caused a drop in the home equity that people hold, and that drop has made some unable to refinance traditionally. If they have lost enough equity that they no longer have 20% equity, they used to be unable to finance.

The Making Home Affordable plan, in contrast, is not a refinancing program. Instead, it is a loan modification program, which requires participating lenders to follow a standard procedure to lower homeowner’s monthly payments to affordable levels.

The plan includes $75 billion of incentives paid out to both lenders and borrowers for successfully modified loans. Modifying loans prevents foreclosure and stabilizes the economy as a whole.

Author: Lindsy Emery Discover additional benefits of loan modifications vs refinancing, by visiting the #1 loan modification resource on the net: http://home-loan-modifications.info/

Article Source: http://EzineArticles.com/?expert=Lindsy_Emery

Comment:  Your choice of which plan you use, a FHA Streamline Refinance Loan or Home Loan Modification, to modify your mortgage depend upon who insures your mortgage.  But if you are having trouble making your mortgage payments you need to contact your lender now to get the process started.

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Comment:  The author of this article explains how fast and easy it is to use a FHA Streamline Refinance Loan to refinance your mortgage loan. 

The author compares the ease of doing a FHA Streamline Refinance Loan with that of a stated income loan.  You do not have to supply the lender with W-2 forms, no tax returns, no pay stubs or income statements.  FHA Streamline Refinance Loan is a quick no trouble way of refinancing your mortgage.

 FHA Streamline Refinance is Like a Stated Income Loan

Homeowners with a current FHA mortgage have something that others don’t, that is the opportunity to refinance with no income verification, using an FHA streamline refinance.

A stated income loan seemed to be a thing of the past but, FHA will streamline a mortgage refinance to reduce the documentation and underwriting normally required.

That means no tax returns, W-2 forms, or pay stubs, and no bank statements to verify assets. Also, FHA does not require a credit report, but some lenders may require one for pricing the rate. A verification of mortgage is required to determine if the loan is delinquent, which is not allowed.

Another potential benefit of the FHA streamline refinance program is that a home appraisal may not be needed. So, in addition to being like a stated income loan, without verifying income or assets, this loan can also eliminate value as an obstacle, especially in a declining housing market.

As with all government programs, there are certain rules and limitations that determine if a refinance will fit into the FHA streamline guidelines, including the following:

1.The current mortgage to be refinanced must already be FHA loan.

2.The subject property must be the borrower’s primary residence .

3.The current mortgage to be refinanced should not be delinquent.

4.The streamline refinance only allows a maximum of $500 cash out.

5.The refinance must result in reducing principal and interest payments.

When getting an FHA streamline refinance without using a new appraisal, the maximum loan amount will be determined by using the lesser of the following two calculations:

1.The original principal balance of the existing FHA mortgage, plus the new up front mortgage insurance premium, which is currently 1.5% on a streamline refinance.

2.The existing FHA mortgage, plus closing costs, prepaid taxes, insurance, interest, and the new up front mortgage insurance premium. Subtract refund of old premium.

When using a new appraisal for an FHA streamline refinance, the maximum loan amount will be determined by the lesser of the following two calculations:

1.The appraised value multiplied by the maximum loan to value percentage, which usually ranges from 97% to 97.75% depending on the state and the loan amount.

2.The existing FHA mortgage, plus the closing costs, prepaid property taxes, hazard insurance, up to 30 days interest, and subtract any refund of insurance premium.

If there is a line of credit or second mortgage on the home, the lien holder must agree to re-subordinate their loan regardless of the combined loan to value. The total amounts of the first and second mortgages can exceed the normal loan to value and the maximum mortgage limit.

Author: R A Smith Article written by Rick Smith at http://www.crhome.com, additional FHA mortgage information at http://www.ditech.com

Article Source: http://EzineArticles.com/?expert=R_A_Smith

Comment:  As you can see refinancing your mortgage with a FHA Streamline Refinance Loan is a great and easy way to refinance your mortgage.

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Comment:  The author in this article will give you the characteristics of a FHA Streamline Refinance Loan and takes you through the steps of getting a FHA Streamline Refinance Loan. 

The author cautions you about getting FHA Streamline Refinance Loan Company that is endorsed by HUD.  This will speed up the process of getting a FHA Streamline Refinance Loan.

Get To Know FHA Streamline Refinance Loans

If you presently have a FHA mortgage, you could be eligible for a streamline refinance and benefit from current low home loan interest rates. The term ‘Streamline’ simply means there is little paperwork to supply the lender. As a result, it permits the homeowner a faster and easier refinance closing.

An FHA streamline refinance typically has the following characteristics:

No minimum credit score requirements.

No asset documentation such as bank statements, retirement accounts, etc.

An Appraisal may not be necessary. If an appraisal is required for an FHA Streamline, the maximum loan is restricted to 97.75%. If an appraisal is not used, there is not a maximum loan restriction.

Upfront mortgage insurance is decreased to 1.5% of the base loan amount (instead of 1.75% for a normal FHA refinance which is not streamlined).

Any cash from proceeds to the borrower is restricted to $500.

Here are some simple rules for homeowners to know when it comes to FHA refinancing:

The mortgage to be paid off must be an FHA insured mortgage.

The borrower can not have had a 30 day or greater mortgage late payment in the previous 12 months.

Non-occupant co-borrowers are not allowed.

The new loan amount is subject to FHA maximum loan limits in your geographical area.

If a property has been converted to an investment property it can still qualify for a FHA streamline refinance if the existing mortgage is an FHA loan.

Now, to make sure you get your FHA refinance done correctly, use a mortgage company or loan officer whose company is HUD approved. The benefit is you get to use a company that is an endorsed HUD approved lender and that generally mean they have their own "in-house" FHA underwriters. This speeds up the time for approval and closing. Timing is crucial in today’s market as rate move up and down quickly.

If you’re interested in securing or still have questions about how FHA Streamline refinances work for your individual situation or what the maximum loan limits are in your state, inquire below.

To get started, you will need to gather the following information for a loan officer to review. The information will normally consist of the following:

Subject Property address
Estimated property taxes and home owners insurance.
Original FHA loan balance from when you got the mortgage.
Existing FHA loan balance.
Estimated home value (appraisal may not be required).

By: Frank65

Article Directory: http://www.articledashboard.com Frank Collins is an avid investor in real estate and believes homeowners will benefit from FHA Streamline Loans. Find Local FHA Mortgage Lenders in your area.

Comment:  Again, it is important to work with a mortgage lender that is approved by HUD to do FHA Streamline Refinance Loan.  They are experienced in doing FHA Streamline Refinance Loans.

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