Many people in the country have availed of a Federal Housing Administration (FHA) loan to be a step closer to their dream home. Fortunately, there is a special refinance program called the FHA Streamline Refinance to help you with the process. This offers the easiest and simplest way to refinance a loan from FHA.
Benefits of FHA Streamline Refinance
The major advantage of this type of refinancing is they do not verify your assets and income before approving of the refinancing. In fact, in some cases, even an appraisal might not be necessary but this might depend on how much loan you have already paid off. This program allows for an unrestricted loan to value ratio, which is a great opportunity for you. Even if you are badly underwater, you can still make the most of the lowest mortgage rates by refinancing your FHA loan through streamline refinance program.
The criteria for qualifying for this program
City Creek Mortgage and other lenders noted that you have to fulfill certain conditions before qualifying for this refinance program. You should be living in the property you are refinancing. In the last one year, you should not have made more than two late payments on your existing FHA loan. You have not completed a similar refinance in the last year. Although the FHA does not require a minimum credit score, the lender might require a good score. It is good if you have a score of 620 or more.
Appraisal is recommended
It is a good idea to get this type of refinance with an appraisal. This will allow you to roll over your closing costs into the current loan. If not, you will have to pay for the closing costs from your pocket. An appraisal is necessary if the new loan is more than your old existing loan by one and a half percent. You can shop around to get the most competitive fees and rates. This information will know what to expect when you check with your current service provider for a streamline refinance.
While considering refinance options, it’s best to research enough to understand the consequences of what kind of financial effect it will have. There are experts who could give advice and help through the whole process.