About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under FHA streamlines, Upside Down (Underwater) Mortgage Programs

The much-anticipated new FHA streamline program for people who have FHA loans that were started prior to May 2009 goes live Monday June 11th. With interest rates testing all time lows this new program is a good idea for virtually every home owner who qualifies. Not only can the interest rate be lowered to somewhere between 3.75% and 4.0% right now, this new program adds nothing to the loan amount and normally allows borrowers to skip at least one mortgage payment. The other benefit of the FHA streamline program is that it doesn’t matter how underwater borrowers are on their current FHA mortgage as long as there are no 30-day late payments in the last 12 months. Add to that the fact that borrowers will also receive a refund check for the amount in their current escrow account and there is no downside at all for most qualified borrowers. Again this program only applies to people who already have FHA loans that are more than three years old. But for that segment of the population taking advantage of this new program is the proverbial “no-brainer”.

Be ready for longer than usual closing waits with this new program though. Because the new program is so beneficial to qualified borrowers millions of homeowners will be seeking these FHA streamlines this summer. Folks who get started right away should expect to close their streamline loan in July. But plan for about six weeks for the refinance process in June and July until the initial rush dies down.

If you have an FHA loan you got prior to May 2009 contact us in the sidebar right away to get an estimate on this new FHA streamline program. If not, you can still contact us to learn more about other available government-backed refinance programs.

Comments (1) Posted by G.R.A. Admin on Sunday, June 10th, 2012


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