If you want to take out an FHA loan, and you’ve had a derogatory credit event, such as a bankruptcy, foreclosure, pre-foreclosure, deed-in-lieu of foreclosure, short sale, or mortgage charge-off occur within the few years, you may have to wait a bit before becoming eligible for FHA financing. Each type of event has its own waiting period, which is designed to protect both the FHA and the lender from the risk of taking on a borrower who may be likely to default on their loan.
The FHA Streamline Refinance is perhaps the fastest and most efficient way to refinance your FHA home loan. However, it’s not the only refinancing option available from the FHA; the Federal Housing Administration also insures another type of refinance loan, the FHA Simple Refinance. Like the Streamline Refinance, the FHA Simple Refinance is only available for current FHA home loan borrowers. However, unlike the FHA Streamline program, Simple Refinancing does require all borrowers to get a home appraisal. In this article, we’ll review more of the similarities and differences of these two FHA refinancing programs in order to help you decide which choice best fits your individual needs.
If you want to refinance your home with the FHA Streamline Refinance program, can you purchase mortgage points in order to reduce your interest rate? The answer is yes. Many FHA Streamline Refinance borrowers decide to reduce their interest rates with mortgage points. Typically, one point will cost one percent of the amount of the loan, and will usually reduce the borrower’s interest rate by 0.25%.
If you already have an FHA loan on a manufactured home, can you refinance it using the FHA Streamline Refinance program? In most cases, the answer is yes. However, you will still be bound by the regular restrictions of FHA Streamline Refinancing. This means that you must be able to achieve a net tangible benefit from the refinancing transaction in order to qualify.
If you currently have an FHA loan on a second home or an investment property, can you refinance it with the FHA Streamline Refinance program? In most cases, the answer is yes. However, you’ll need to check with your lender, since some lenders only approve FHA Streamline Refinances for owner-occupied properties.
One of the most attractive aspects of the FHA Streamline Refinance program is the fact that it technically does not require credit verification. This means there is no minimum credit score for FHA loans. However, lenders may have different credit requirements; just because the FHA doesn’t check your credit score doesn’t mean that a lender won’t.
Like most other kinds of FHA loans, FHA Streamline Refinancing comes in both fixed and adjustable-rate versions. Borrowers may choose to refinance their fixed-rate loan to another fixed-rate loan or an adjustable-rate loan. Likewise, a borrower can refinance an adjustable-rate loan to another adjustable-rate loan or a fixed-rate loan.
The Federal Housing Administration, or FHA, is one of the most important mortgage institutions in the country. Founded as part of the National Housing Act of 1934, this organization was one of the many expansions made by President Franklin D. Roosevelt as part of the “New Deal,” a sweeping legislation that sought to ease the Great Depression.
Making mortgage decisions can be tough. There are many variables and numerous factors involved, and making the right decision can seem complex and confusing. It helps to understand whether or not you are the ideal borrower for an FHA loan. In this article, we’ll look at a few indicators that might demonstrate that you are an ideal candidate for an FHA Streamline Refinance.
FHA Streamline Refinancing is the fastest way to refinance an FHA home loan. While this type of refinancing has a variety of upsides, it also has certain disadvantages as well. In this article, we’ll examine both, in order to help you decide if an FHA Streamline Refinance could be a good fit for your individual needs.