FHA Refinancing
Subprime woes and ARM resets have
many homeowners searching for a solution to help pay their monthly
mortgage bills. Look no further - a FHA Refinance
is the most popular option on the market today.
With the FHA, you can:
- Refinance Your Mortgage into a
More Reasonable Monthly Payment
- Refinance Your Current Loan to
help Avoid Foreclosure.
- Take Cash Out of Your Home's
Equity for Home Improvements
- So
contact us
for an FHA refinance today!
Some of the benefits you will
enjoy include a low down payment, relaxed qualification standards,
and you may qualify for a lower rate. We do not even need your
social security number to
get the process
started so contact one of our qualified FHA loan specialists who
will answer all your questions and walk you through refinancing your
home with a FHA loan step-by-step.
FHA Streamline Refinancing
FHA has permitted streamline
refinances on insured mortgages since the early 1980's. The streamline
refers only to the amount of documentation and underwriting that needs
to be performed by the mortgage company, and does not mean that there
are no costs involved in the transaction.
The basic requirements of a streamline refinance are:
-
The mortgage to be refinanced must
already be FHA insured.
-
The mortgage to be refinanced
should be current (not delinquent).
-
The refinance is to result in a
lowering of the borrower's monthly principal and interest payments.
-
No cash may be taken out on
mortgages refinanced using the streamline refinance process.
Companies may offer streamline
refinances in several ways. Some companies offer "no cost" refinances
(actually, no out-of-pocket expenses to the borrower) by charging a
higher rate of interest on the new loan than if the borrower financed
or paid the closing costs in cash. From this premium, the company pays
any closing costs that are incurred on the transaction.
Companies may offer streamline refinances and include the closing
costs into the new mortgage amount. This can only be done if there is
sufficient equity in the property, as determined by an appraisal.
Streamline refinances can also be done without appraisals, but the new
loan amount cannot exceed what is currently owed, i.e., closing costs
may not be added to the new mortgage with those costs either paid in
cash or through the premium rate as described above. Investment
properties (properties in which the borrower does not reside in as his
or her principal residence) may only be refinanced without an
appraisal and, thus, closing costs may not be included in the new
mortgage amount.
