The changes outlined below are effective January 26, 2015. (Mortgage Letter 2015-01) FHA has reduced its mortgage insurance premiums as of January 26, 2015. Allowing for new FHA mortgage borrowers to take advantage of the 0.50 basis point reduction on annual Mortgage Premium rates. If eligible, existing FHA homeowners may be able to choose an FHA streamline mortgage refinance in order to take advantage of these new MIP rates.
An FHA streamline refinance is often considered by FHA homeowners who would like to reduce their rate and mortgage payments with less documentation required. The streamline refinance program is one of the benefits that the FHA offers to its borrowers, as it is usually a quick and the least expensive process with lenient documentation and credit standards as oppose to a traditional refinance.
Benefits of an FHA Streamline Refinance
If you are a current FHA-insured mortgage homeowner, you may fine that the FHA offers several advantages. One of the advantages is the FHA Streamline Refinance program. Here are a few of the common advantages, such as:
Usually does not require for an appraisal
Underwater homes may be eligible
Offers some of the lowest rates
Typically does not require for additional proof of income documentation
You may be able to qualify for a refund on your Upfront MIP that you originally paid
All FHA loans with a closing date of June 1, 2009 may be eligible for a reduction in mortgage insurance premiums by 0.01% for upfront and 0.55% for monthly
With a Streamline Refinance under the FHA, the closing time tends to be a lot quicker
The FHA streamline refinance program has been helping homeowners lower their rate for a few years and is considered to be one of the most easiest refinance process around.
Most of the time, the FHA streamline guidelines say that no new appraisal required (the original loan price is used), no new credit review is required, no verification of employment or income is required, and no cash back is allowed. But don't be confused - just because the government guidelines say one thing doesn't mean that lenders aren't requiring another. Many lenders have additional requirements that require additional requirements such as appraisal, credit verification, etc.
Getting matched with a lender for the FHA streamline refinance program is fast, easy and only takes a couple of minutes. Get started here today!