FHA Streamline Refinancing More Affordable

 

Save on FHA Streamline Refinancing

Fee reductions for FHA Streamline Refiancing effective today.

 

Streamline refinancing just became more affordable for people with FHA mortgages endorsed prior to May 31, 2009. Effective today, the Federal Housing Administration reduced upfront mortgage insurance payments and reduced monthly insurance premiums.

The new FHA Streamline Refinance annual premium, which is paid monthly by the borrower, is now .55% on a streamline refinance of any loan endorsed on or before May 31, 2009. This is a much lower premium rate than the previous FHA Streamline rate of 1.2% – 1.25%. The upfront mortgage insurance premium (UFMIP) is a one-time fee collected by FHA and added to the loan balance. FHA increased UFMIP to 1.75% on April 1st, but as of today this new FHA Streamline Refinance UFMIP rate is only .01% when the previous loan was endorsed on or before May 31, 2009.  All other streamline refinances will still be subject to the UFMIP rate of 1.75%.

FHA Streamline Refinances are the fastest, simplest way for homeowners with FHA mortgages to refinance. Another defining characteristic of the FHA Streamline Refinance program is that a home appraisal is optional. Instead of a new home appraisal, the FHA will allow you to use the original loan’s appraised value as your home’s current value, regardless of what your home is worth today. This may be quite helpful to homeowners who suffered reductions in home values since 2007.

A licensed mortgage loan officer can help you determine if you meet the requirements to be eligible for the reduced premiums available and if a FHA Streamline Refinance is right for you. Click here to find a mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

FHA Mortgages & FHA Streamline Refinance

FHA Mortgage Information and Frequently Asked Questions

What should you know about FHA mortgages?

FHA Mortgage Loans

FHA mortgage loans are very competitive loan programs. FHA mortgages allow the homebuyer to put down a low down payment and have less than perfect credit. Other benefits of the FHA mortgage loan program include:

  • lower closing costs
  • down payment can be gifted to the homebuyer
  • available on 1-4 unit properties
  • cash reserves not required
  • closing costs can be paid by seller
  • flexible qualifying debt to income ratios
  • streamline refinance available

FHA Mortgage Loan FAQs

Q. How can the FHA help me buy a home?
A.
Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify

Q. What are basic eligibility requirements for FHA financing?
A.
Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Your lender will verify income, assets, liabilities, and credit history for all parties on the loan.

Q. How do I find a FHA approved lender?
A.
Inlanta Mortgage is an FHA approved lender. Find a licensed mortgage loan professional near you here.

Q. Does bankruptcy disqualify a borrower from being eligible for a FHA mortgage?
A.
No, you may be eligible if more than two years has elapsed since the date of the discharge of the bankruptcy.

Q. How is an FHA Mortgage Loan structured?
A.
FHA Mortgage loans require a mortgage insurance premium to be collected at closing (upfront MI) and an annual premium is collected in monthly installments. The FHA mortgage insurance premium is not the same as your homeowner’s insurance and is required of all borrowers with less than 20% down payment. A typical monthly mortgage payment on a FHA mortgage loan includes principal and interest, taxes, mortgage insurance premium (MIP), homeowner’s insurance (assuming you have elected to make monthly payments on taxes and homeowner’s insurance).

~New developments regarding MIP~
HUD announced that upfront mortgage insurance premiums for FHA loans will increase April 1, 2012 and again on June 1, 2012 for high cost areas only. IF you think you’ll want an FHA loan for your next mortgage, the best way to avoid the new FHA fees is to apply for an FHA loan before the new FHA MI premiums go into effect April 1, 2012. Contact a licensed mortgage loan professional for more information on increasing upfront mortgage insurance premiums for FHA mortgage loans.

Q. Am I eligible for a FHA Streamline Refinance?
A.
The mortgage to be refinanced must already be FHA insured. The mortgage to be refinanced should be current (not delinquent). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. No cash may be taken out on mortgages refinanced using the streamline refinance process. Contact a mortgage loan professional near you to discuss FHA Streamline Refinance opportunities.

~BREAKING NEWS REGARDING FHA STREAMLINE REFINANCE~
Recently announced changes from the White House affects loans the Federal Housing Administration insures and would reduce fees on those mortgages for borrowers previously unable to borrow at lower rates.
The Obama administration said it will lower the costs on up-front mortgage insurance premiums to 0.01 percent for streamlined refinancing of FHA loans. The White House said it will cut the annual fee for these refinancings in half to 0.55 percent.
The eligible borrowers for the streamline refinance program must have taken out those FHA loans on or before May 31, 2009.
Contact your licensed mortgage loan professional for more information!

Inlanta Mortgage is proud to be a direct endorsed lender of the Federal Housing Authority (FHA) mortgage loans. Apply now for a loan or find a licensed mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.