It allows for an easy, streamlined process for refinancing an existing FHA loan to a lower interest rate, without the need for an appraisal or income documentation.
Save on average $450 by avoiding an appraisal fee. For those that do not have equity, this can be an attractive feature.
We have a minimum credit score of 620 for FHA Streamlines. Many other lenders require a 640 FICO score for this program.
You usually do not need to supply W-2’s or tax returns, making for less paperwork. We do not calculate a debt to income ratio. Great for self-employed borrowers.
We can structure the loan so that you can skip 2 mortgage payments, meaning you can save thousands of dollars from the start.
For those that have had an FHA loan since May 31, 2009, there is special relief available. These borrowers are eligible for reduced upfront mortgage insurance (.01% of the loan amount instead of the typical 1.75% of the loan amount that the FHA charges). This can equate to thousands of dollars in closing cost savings. In addition, these borrowers can enjoy grandfathered monthly mortgage insurance premium rates of .55, compared to the current rates of .80 or .85. This means more payment savings!
Important changes have taken place regarding the FHA Monthly Mortgage Insurance Premiums (MIP). Effective January 26, 2015, the monthly MIP has been reduced by .50% for all FHA loans. For a $200,000 loan, this equates to savings of $1,000 per year in MIP savings alone! Even if you recently obtained an FHA loan, it may make sense to use the Streamline program to reduce your MIP to the current rates. By reducing the interest rate in conjunction with lowering the monthly MIP rates, this can lead to tens of thousands of dollars in savings over the life of the loan.
FHA Streamline loans can be used for all property types, including primary residences, second homes, and investment properties.
Contact us today to receive more information.
We will contact you within 24 hours to review your options.