There was a good article over at Mainstreet.com extolling the virtues of FHA streamline loans. If you have an FHA or VA loan at 6% or higher contact us today to see about streamlining your loan to a lower interest rate while you still can. Here are some excerpts from the article:
Federal Housing Administration (FHA)-insured mortgages have skyrocketed since 2006, and now FHA “streamlined†refinancing programs are following suit.
What’s not to love? FHA loans can be more consumer friendly, don’t require a home appraisal and it does not matter if your home is underwater (meaning the appraised value is less than the amount of money you owe on your mortgage loan).
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Here are the details. FHA streamlined loans, also known as “rate reduction†loans are designed specifically for one big task; to reduce a homeowner’s monthly mortgage payment. It’s not rocket science but for the most part, it’s flying under the radar, possibly because only FHA mortgage-holders qualify.
But if you do qualify for an FHA streamlined mortgage, the package looks like a good one; maybe the most consumer-friendly and cost-effective refinancing program out there.
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Though, it’s not just a simple cakewalk for FHA loan applicants. You’ve got to be current on your home loans. Even a single 30-day late payment is enough to gum up the works. In addition, a potential borrower must establish a good history of making their mortgage payments; six-months worth of on-time mortgage payments must usually be established. Credit scores will also weigh into the equation and most likely anything under 620 will cut you out of the deal (although it’s still a good idea to check with your FHA lender first).
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If you want to refinance, and you have an FHA loan, streamlining it may be the best way to go.
