Reporting from Washington -" The Obama administration's new plan to stimulate refinancing of FHA mortgages is likely to help large numbers of homeowners -" even those who are deeply underwater -" cut their monthly costs by switching to a loan with a rate below 4%. Here's a quick overview of the "streamline refi" program and what it will take for you to qualify. FHA streamline refinance in Wyoming may be just what you need.
First, the baseline criteria: Your current home loan must be FHA-insured and must have been put on the Federal Housing Administration's books no later than May 31, 2009. If you have a mortgage owned or backed by Fannie Mae, Freddie Mac, the Department of Veterans Affairs or private investors, you're out. The May 31, 2009, date is crucial. Your lender can tell you precisely when the FHA "endorsed" your loan for insurance. This is different from the dates you applied for your loan or closed on your house. If it turns out to be any time later than May 31, 2009, you miss the cut.
You also need to have an unblemished record of on-time mortgage payments for the last 12 months. Maybe you were late occasionally a couple of years back. That's OK. But the last 12 months need to be pristine. On top of that, if your refinancing does not provide you a net savings of at least 5% in your monthly principal, interest and mortgage insurance payments, you won't be eligible either. The program won't take effect until June 11.
In order to be eligible to get benefited with low rate streamline home refinance loans provided by the FHA, applicants could be needed to strictly adhere to the below mentioned requirements. 1. Borrower must be current on existing monthly mortgage payments for the past 12 months. 2. Applicant needs to own the original property for a period of at least 6 months before refinancing.3. Existing home mortgage loans have to be necessarily offered by lenders who have been FHA approved. 4. Borrowers whose present home mortgages are guaranteed by Fannie Mae or Freddie Mac cannot apply. 5. Although FHA streamline home loans do not require any appraisal, money borrowed may not exceed current loan amount.
Now for the good stuff: Under the Obama plan, if you qualify on the criteria above, you get to breeze through the paperwork maze and underwriting hassles that come with any refinancing. The FHA streamline refi requires: No new verifications of your income or employment status. If you've been paying on time for a year, the presumption is that you've got the needed income. No new credit evaluation, credit reports or FICO scores. No new physical appraisal. The program generally accepts the appraised value of your home at the time you closed on your current FHA loan as good enough -" even if you're now in serious negative equity territory. Check out FHA streamline refinance in Wyoming.
First, the baseline criteria: Your current home loan must be FHA-insured and must have been put on the Federal Housing Administration's books no later than May 31, 2009. If you have a mortgage owned or backed by Fannie Mae, Freddie Mac, the Department of Veterans Affairs or private investors, you're out. The May 31, 2009, date is crucial. Your lender can tell you precisely when the FHA "endorsed" your loan for insurance. This is different from the dates you applied for your loan or closed on your house. If it turns out to be any time later than May 31, 2009, you miss the cut.
You also need to have an unblemished record of on-time mortgage payments for the last 12 months. Maybe you were late occasionally a couple of years back. That's OK. But the last 12 months need to be pristine. On top of that, if your refinancing does not provide you a net savings of at least 5% in your monthly principal, interest and mortgage insurance payments, you won't be eligible either. The program won't take effect until June 11.
In order to be eligible to get benefited with low rate streamline home refinance loans provided by the FHA, applicants could be needed to strictly adhere to the below mentioned requirements. 1. Borrower must be current on existing monthly mortgage payments for the past 12 months. 2. Applicant needs to own the original property for a period of at least 6 months before refinancing.3. Existing home mortgage loans have to be necessarily offered by lenders who have been FHA approved. 4. Borrowers whose present home mortgages are guaranteed by Fannie Mae or Freddie Mac cannot apply. 5. Although FHA streamline home loans do not require any appraisal, money borrowed may not exceed current loan amount.
Now for the good stuff: Under the Obama plan, if you qualify on the criteria above, you get to breeze through the paperwork maze and underwriting hassles that come with any refinancing. The FHA streamline refi requires: No new verifications of your income or employment status. If you've been paying on time for a year, the presumption is that you've got the needed income. No new credit evaluation, credit reports or FICO scores. No new physical appraisal. The program generally accepts the appraised value of your home at the time you closed on your current FHA loan as good enough -" even if you're now in serious negative equity territory. Check out FHA streamline refinance in Wyoming.
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