Articles in Category: Streamline Refinance

March 25, 2011

FHA Refinance Loans–Can I Include Closing Costs Into a Streamline Loan?

FHA Mortgagee Letter 2011-11 issued several changes and policy clarifications to refinancing loans. FHA borrowers with existing mortgages should be aware of these changes as they can affect a borrower’s planning when it’s time to consider refinancing a home with streamline or cash-out FHA loan products. One of the changes, scheduled to take effect in mid-April 2011, alters the way closing costs, pre-paid items, discounts and other items are paid for during some types of FHA refinancing. According to the new FHA guidelines, “The mortgagee may not add closing costs, discount items, prepaid items, or other financing costs to the new loan balance.” This applies to borrowers who seek “Non-Credit Qualifying Streamline Refinances” like an FHA Streamline loan. The policy also states, “As a means of controlling risk to FHA

February 25, 2011

FHA Streamline Refinancing Rules

By Joe Wallace

There have been several changes to the rules affecting FHA refinancing loans. Subordinate liens, the waiting period borrowers must go through before applying for an FHA refinancing loan, and other important areas have all been affected by new rules designed to protect the FHA loan program and tighten control in certain areas of the refinancing process. For example, borrowers are now required to be current on their mortgage the month prior to and for the month of the closing date.

February 25, 2011

Changes to FHA Refinancing Rules

By Joe Wallace

In our last blog post we discussed some changes to FHA refinancing loan rules. Effective immediately, the FHA requires all borrowers seeking streamline refinancing to make at least six mortgage payments on the property. There must also be a minimum of

February 24, 2011

FHA Streamline Refinance Loan Changes

By Bruce Reichstein

There have been many changes recently to FHA Refinancing regulations--too many to cover in a single blog post, but we'll discuss them over the next several days. One important set of changes is to the Streamline Refinance program--a "non credit-qualifying" refinancing loan offered by the FHA. When a borrower applies for an FHA insured mortgage, they may do so fully intending to refinance it later on using an FHA Streamline Refinancing mortgage.

February 22, 2011

Can I Use FHA Streamline Refinancing to Avoid Foreclosure?

By Joe Wallace

There are many options FHA borrowers have to avoid default and foreclosure on an FHA mortgage. Borrowers in trouble are encouraged to contact the FHA and their lender as early as possible in the process of dealing with financial difficulty--the earlier you act, the more options you have. There are several homeowner bailout programs available to help homeowners keep their homes, avoid missing additional mortgage payments and stay on financial track. For borrowers who are struggling with rising mortgage payments or who have payments that are currently too high, refinancing is an option that can help easy the monthly money crunch.

January 13, 2011

FHA Streamline and No Cash-Out Refinancing: Basic Rules

By Joe Wallace

FHA Refinancing loans are more popular than ever thanks to the need many homeowners have to lower interest rates and monthly payments. Non-cash out refinancing includes both Streamline and non-Streamline FHA loans. Each one has its own restrictions and requirements. As with all FHA refinancing loans, the FHA does not require the borrower to pay the current month's mortgage payment prior to closing the loan. The FHA adds, "nor will be the principal balance of the existing loan be reduced by the amount of that unpaid principal."

December 9, 2010

FHA Streamline Refinance Rules

By Joe Wallace

For those who have FHA home loans, there's a refinancing option known as an FHA Streamline Refinancing loan. Streamline loans have far less documentation and paperwork requirements because the initial underwriting has already been done. Qualified FHA borrowers can get Streamline loans for the purpose of lowering monthly mortgage payments and can't get cash back. Some FHA borrowers mistakenly believe that "Streamline" refers to more than just paperwork and underwriting, which is why the FHA takes care to point out in the documentation of these FHA refinancing loans that there are closing costs associated with them.

December 1, 2010

What is an FHA 203(k) Streamline Mortgage?

By Joe Wallace

There are many types of homes available to buy with an FHA home loan. Some borrowers are looking for new or recently built properties, but others seek less expensive properties. Some turn to fixer-upper properties, houses that have been foreclosed upon and in a state of disrepair, or similar purchases that require some additional work to make them ideal living spaces. The FHA understands the needs of the budget-conscious house hunter; but it's also understood that a buyer might not be able to afford all the repairs, upgrades or improvements to a property as an out-of-pocket expense. That's one reason for the FHA Streamline 203(k) Limited Repair Mortgage program.

June 10, 2009

FHA Home Loan Numbers Increase in Spite of Housing Slump

By Bruce Reichstein

While indicators show conventional lending markets are still feeling the effects of the housing slump the FHA has taken a larger role in helping consumers get affordable home loans. Some of the most recent developments are making those on the fence about buying a new home in this economy give FHA loans a second look.