Thursday, April 4, 2013

FHA Changes Are Here... What does it Mean?


The first change goes into effect on April 1st – no fooling! Here’s what changes:

Sunday, January 20, 2013

What Is An FHA Streamline Refinance?


The FHA Streamline Refinance is a special mortgage product, reserved for homeowners with existing FHA mortgages. Homeowners with conventional mortgages via Fannie Mae or Freddie can't use it. FHA Streamline Refinances are the fastest, simplest way for FHA-insured homeowners to refinance their respective mortgages.
The FHA Streamline Refinance program's defining characteristic is that it does not require a home appraisal. Instead, the FHA will allow you to use your original purchase price as your home's current value, regardless of what your home is actually worth today.
In this way, with its FHA Streamline Refinance program, the FHA does not care if you are underwater on your mortgage. In fact, the program encourages underwater mortgages. Even if you owe twice what your home is now worth, the FHA will refinance your home without added cost or penalty.
The FHA allows for unlimited loan-to-value with its Streamline Refi program -- a huge help to FHA homeowners in places like Florida, California, Arizona and Georgia.
Except for this "no appraisal" benefit, the FHA Streamline Refinance is very much like other loan products. It's available as a fixed rate or adjustable mortgage; it comes with 15- or 30-year terms; and there's no prepayment penalty to worry about.
Another big plus is that FHA mortgage rates are as low with the Streamline Refinance program as with "regular" FHA loans.

Free Consultation Call Today  1(916) 910-8737

FHA Streamline : No Verification Of Job, Income, Credit

Another big plus is that the FHA Streamline Refinance is fairly easy for which to qualify.
In a sweeping guideline update, in April 2011, the FHA abolished verification for practically everything on an FHA Streamline Refinance mortgage application. Now, as written in the FHA's official mortgage guidelines, the mortgage approval process for an FHA Streamline Refinance says :
  1. Employment verification is not required with an FHA Streamline Refinance
  2. Income verification is not required with an FHA Streamline Refinance
  3. Credit score verification is not required with an FHA Streamline Refinance
And, as mentioned earlier, there's no need for a home appraisal, either.

Free Consultation Call Today  1(916) 910-8737

Are You FHA Streamline Refinance Eligible?

Although the FHA Streamline Refinance eschews the "traditional" mortgage verifications of income and credit score, as examples, the program does enforce minimum standards for applicants. The official FHA Streamline Refinance guidelines are below.

Perfect, 3-Month Payment History Is Required

The FHA's main goal is to reduce its overall loan pool risk. Therefore, it's number one qualification standard is that homeowners using the Streamline Refinance program must have a perfect payment history stretching back 3 months. 30-day, 60-day, and 90-day lates are not allowed. One mortgage late payment is allowed in the last 12 months. Loans must be current at the time of closing.

210-Day "Waiting Period" Between Refinances

The FHA requires that borrowers make 6 mortgage payments on their current FHA-insured loan, and that 210 days pass from the most recent closing date, in order to be eligible for a Streamline Refinance.

Free Consultation Call Today  1(916) 910-8737

Employment And Income Are Not Verified

The FHA does not require verification of a borrower's employment or annual income as part of the FHA Streamline process. There is no Verification of Employment, nor are there paystubs, W-2s or tax returns required for approval. You can be unemployed and get approved for a FHA Streamline Refinance so long as you still meet the other program requirements.

Credit Scores Are Not Verified

The FHA does not verify credit scores as part of the FHA Streamline Refinance program. Instead, it uses payment history as a gauge for future loan performance. This means that FICO scores below 640, below 620, below 580, and below 500 are eligible for Streamline Refis.

The Refinance Must Have "Purpose"

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance; a legitimate reason for refinancing. Loosely, Net Tangible Benefit is defined as reducing the (principal + interest + mortgage insurance) component of the mortgage payment by 5 percent or more. Another allowable Net Tangible Benefit is to refinance from an adjusting ARM into a fixed rate loan. Taking "cash out" to pay bills is not an allowable Net Tangible Benefit.

Loan Balances May Not Increase To Cover Loan Costs

The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance is limited by the math formula of (Current Principal Balance + Upfront Mortgage Insurance Premium). All other costs -- origination charges, title charges, escrow population -- must be either (1) Paid by the borrower as cash at closing, or (2) Credited by the loan officer in full. The latter is called a "zero-cost FHA Streamline"

Appraisals Not Required

The FHA isn't concerned about home value -- it's insuring your loan regardless. Therefore, the FHA does not require appraisals for its Streamline Refinance program. Instead, it uses the original purchase price of your home, or the most recent appraised value, as its valuation point. Homes that are underwater are still FHA Streamline-eligible.

FHA Streamline Refinance Mortgage Insurance Requirements

The FHA Streamline Refinance is an FHA-insured mortgage, and FHA borrowers are required to make two types of mortgage insurance payments -- an upfront mortgage insurance payment paid at closing, plus an annual one split into 12 installments, paid with your mortgage payment each month.
With respect to mortgage insurance premiums, as of June 11, 2012, homeowners using the FHA Streamline Refinance program are split into two classes :
  1. Homeowners whose new loan replaces an FHA-backed mortgage endorsed before June 1, 2009
  2. Homeowners whose new loan replaces an FHA-backed mortgage endorsed on/after June 1, 2009.
Beginning June 11, 2012, homeowners in the first class -- those with"old" FHA mortgages to refinance -- will pay markedly lower mortgage insurance than homeowners in the second class of borrowers.

Free Consultation Call Today  1(916) 910-8737

FHA Streamline Refinance MIP (For Loans Endorsed Before June 1, 2009)

If your existing FHA mortgage was endorsed prior to June 1, 2009, your mortgage insurance premiums have been "grandfathered". You can refinance to the FHA Streamline Refinance program and pay reduced rates for both for upfront MIP and annual mortgage insurance premiums.

Upfront MIP

For an FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point.
For example, if your new FHA Streamline Refinance is for $100,000 mortgage, the FHA will assess a $10 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically adds the $10 payment to your new loan balance.

Annual MIP

Annual MIP is similarly cheap. For an FHA Streamline Refinance that replaces a FHA loan endorsed prior to June 1, 2009, the annual MIP is 0.55% annually, or 55 basis points.
The complete annual MIP schedule is as follows :
  • 15-year loan terms with loan-to-value over 90% : 0.55 percent annual MIP
  • 15-year loan terms with loan-to-value under 90% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 0.55 percent annual MIP
15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP.
For an FHA Streamline Refinance that replaces a FHA loan endorsed prior to June 1, 2009 and for which the mortgage is a jumbo FHA mortgage in excess of $625,500, there is no additional mortgage insurance premium.
FHA jumbo loans over $625,500 are only permitted in "high-cost" living areas such as Montgomery County, Maryland; New York City, New York; and Fairfax County, Virginia. Most of California, Hawaii and Alaska are FHA jumbo loan-eligible, too.
The maximum loan size for a jumbo FHA mortgage is $729,750.

Free Consultation Call Today  1(916) 910-8737

FHA Streamline MIP For Loans Endorsed On/After June 1, 2009

If your existing FHA mortgage was endorsed on, or after, June 1, 2009, your new FHA mortgage insurance premiums are the same as for all other FHA mortgage applicants.

Upfront MIP

For an FHA Streamline Refinance that replaces a loan endorsed on, or after, June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 1.75 percent of the loan size, or 175 basis points.
For example, if your new FHA Streamline Refinance is for $100,000 mortgage, the FHA will assess a $1,750 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically rolls the $1,750 payment into your new loan balance.
Not all FHA homeowners will pay this full amount, however.
One great thing about the FHA Streamline Refinance program is that the FHA offers refund on previously-paid upfront MIP so long as you're still within the first 3 years of your mortgage.
As an example, refinancing after 11 months grants a 60% refund, but waiting just one more month lowers that refund down to 58%. This is why is rarely a good idea to "wait to refinance" with the FHA. With the FHA Streamline Refinance, the sooner you refinance, the bigger your MIP refund, and the lower your final loan size. This preserves home equity.
You can review your own FHA mortgage insurance refund chart at top.

Annual MIP

For an FHA Streamline Refinance that replaces a FHA loan endorsed on, or after, June 1, 2009, the annual MIP varies based on loan type and loan-to-value.
The annual MIP schedule, for loans with case numbers assigned on, of after, June 1, 2009 :
  • 15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP
  • 15-year loan terms with loan-to-value under 90% : 0.35 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : 1.25 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP
15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP. Mortgages made for $625,500 or more are subject to an additional 0.25 percent annual mortgage insurance fee.
A Los Angeles, California homeowner, therefore, using the FHA's full $729,750 local loan limit for a low-down payment, 30-year fixed rate mortgage will pay annual mortgage insurance premium of 1.50% to the FHA, or $912 per month.
Note that mortgage insurance payments are included in the FHA's Net Tangible Benefit requirement. You must lower your monthly payment by at 5 percent to qualify for the FHA Streamline Refinance.

Free Consultation Call Today  1(916) 910-8737

Apply For Your FHA Streamline Refinance Here

The FHA Streamline Refinance is among the easiest and best-valued mortgage products available.
If you have an existing FHA mortgage, get yourself a FHA Streamline Refinance rate quote. FHA mortgage rates are low and my office underwrites and funds FHA loan in-house. This means we can close your mortgage faster, entitling you to a bigger FHA refund check on your Streamline Refinance.

NOTE : FHA Streamline Refinance information is accurate as of today, January 20, 2013. If you get your FHA Streamline Refinance information elsewhere online, it may be inaccurate or out-of-date. FHA mortgage guidelines change often.

Wednesday, December 5, 2012


FHA loans have been helping people become homeowners since 1934. How do we do it?
The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so we can offer you a better deal than your bank can and with us, you will not have to wait over 90 days for an answer.

 
 
What does that mean to a Home Owner?
  • Low down payments
  • Low or no closing costs
  • Low credit score OK
  • No Cost and No appraisal refinance
  • FHA loans are 100% assumable


Free Consultation Call Today  1(916) 910-8737



Thursday, September 13, 2012

FHA Streamline Loan Requirements
FHA Streamline loans can help homeowners lower monthly mortgage payments and interest rates. But what do you need to qualify for an FHA Streamline loan? To begin, you need an existing FHA mortgage—if you don’t have an FHA loan but want to refinance, your options include conventional refinancing or applying for an FHA refinancing loan.

For those who do have an FHA home loan, the other requirements for FHA Streamline include:
  • 1. Being current on the existing loan with all mortgage payments made on time for the last year.

  • 2. You must own the original property for at least six months before you can qualify for refinancing.
  •  Free Consultation Call Today  1(916) 910-8737
     
  • 3. To refinance you’ll need an FHA-approved lender. If you don’t want to use your current lender, any bank you choose must be FHA approved. ( We are Approved)
  • FHA Streamline loans do not require an appraisal, but a no-appraisal loan cannot exceed your current loan.

  • Arranged a “no-cost” FHA Streamline loan. You may also choose to include the closing costs into your loan a “with appraisal” FHA Streamline loan. In these cases you must have enough equity in the home to cover the extra amount.
There is another Streamline product made for those who want a refinancing plan to help them modify or improve the home. This is known as an FHA Streamline 203(k) Loan. The 203(k) is similar to ordinary Streamline loans with a few exceptions.
  Free Consultation Call Today  1(916) 910-8737 Kenny


Happy New Year !!!!!!!!

Happy New Year.... What does that mean? Can the new Year Truly be That Happy? It can.
We can not expect to fix every single part of our Life at the Same time but we can Change the Parts that we have Control Over, thus allowing us to focus on the Things that Truly Matter. Our Family, Our Friends and Our Way of Life. 
How Would Having more money for Your Family Help You? Would it make Life Easier? What would an EXTRA (300.00) Dollars a Month Allow You to Do for Your Self and Your Loved Ones?
You have to make the Decision to Make a Change Otherwise Things will be the same if Not Worse than today.
Remember, Tomorrow will most Likely Resemble Today, Next Week Will Closely Resemble This Week, Next Year Will Closely Resemble this Year. How Great Can Life Be? Lets Find Out.Call Us for a 
Free Consultation Call Today  1(916) 910-8737

 Lets Make 2013 Amazing... We Can Help!