An FHA loan is defined as a loan that is insured by the Federal Housing Administration. In principle, the federal government covers loans for the lenders that are FHA approved to make sure their risk of loss is reduced if a borrower fails to pay their mortgage payment.
FHA Streamline Refinance on mortgage, in a nutshell, is the easiest way to refinance an FH loan. What differentiates between a traditional refinance and an FHA refinance? The streamline allows the borrower to refinance without going through all the hurtles often seen with other refi programs. A new appraisal is often times not required as loan to value (LTV) is not important. Let us take a look at FHA Streamline Refinance in detail:
What is an FHA Streamline Refinance
The Florida FHA Streamline Refinance is a unique refinance program that is solely available to homeowners with FHA insured mortgages. This is a “streamline” process as the name implies meaning less verification’s, less paperwork, no appraisal or home inspection. The program is formulated to reduce a homeowner’s monthly mortgage payment, or as a mean to refi out of an adjustable rate mortgage (ARM) Advantages the FHA Streamline Refinance Mortgage
Eligible residents of Florida that currently have a FHA mortgage should remember a few things when applying for the program:
- You are not obligated to go through the full normal mortgage paperwork process, like when the home was originally purchased. The only requirement is a timely mortgage history.
- You are not required to verify as much in regards to income and assets.
- You don’t have to pay any closing costs out of pocket. Often time the costs can be included in the new loan or paid by the lender in certain cases.
- You are not obliged to pay for a new appraisal, home inspection, etc. This saves in closing costs.
Why you should go for it?
This program is your government supported bailout. FHA Streamline Refinance rewards a responsible and hardworking homeowner by allowing historically low interest rates even if they are underwater on their mortgage, provided it’s not due to their own fault. These guidelines change often, so contact us for the latest requirements. Homeowners also want to be aware of recent FHA mortgage insurance changes, FHA mortgage insurance is going down for new all loans. Low FHA interest rates together with the newly reduced mortgage insurance costs makes this a great time to refinance.
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