If you are refinancing your current house with a high interest rate loan, then you might want to consider taking a low interest rate, fixed rate, FHA Streamline Refinance. In this article, we’re going to take a look at the advantages of this type of loan. We will clarify how FHA Streamline Refinancing works and we will also look at some disadvantages that may be associated with that. Consult Parker Mortgage Brokers for better idea about the process.
Currently, almost half of all American homeowners are behind on their mortgage payments. Those homeowners that are behind in their mortgage payments are living in the house they’re refinancing their existing mortgage in. The reason most individuals are behind on their mortgage is because they did not apply for a Federal Housing Administration (FHA) loan to assist them with their down payment.
It’s essential that if you are planning to refinance your existing home, you receive FHA approval. An FHA loan is a very low risk, low-interest mortgage. FHA provides loans through the Federal Housing Administration’s (FHA) program. It is a federal loan backed by the United States Department of Housing and Urban Development (HUD). It’s created for first time home buyers, as well as debtors that are facing financial problems.
A FHA Refinancing program lets you refinance your existing home and keep your interest rates in the same low interest rates that existed when you took out your loan. These low rates of interest may not qualify as the lowest interest rates available, but they are still low rates of interest and you’ll be able to continue to keep the mortgage payment at the same low interest rate which you were paying before you took out your new loan.
Another benefit to FHA Streamline Refinancing is that there’s no credit check or deposit required to take out this loan. No minimum credit check or deposit is necessary for almost any FHA Refinancing application, including FHA Streamline Refinancing.
The FHA does need you to provide a letter from the doctor that says you have been diagnosed with hypertension or diabetes. You don’t have to prove that you are experiencing serious medical conditions such as heart issues, cancer, stroke, or other life threatening diseases.
You will also have to provide a copy of your bank statements for the last twelve months, which will confirm that the balances of your present loans and accounts that you hold with them. The FHA will even request evidence of the current home value along with the state of your mortgage.
A FHA Loan does not require a cosigner, so if you have bad credit, or have a credit score that is less than 600, you may not meet the requirements for an FHA refinance. The FHA only will give you permission to refinance if you are 62 years old or older. They will not approve you for a FHA Refinance if your credit rating is less than about 600. FHA doesn’t accept cosigner applications either.
If you are an FHA Home Owner then you will be able to get the same advantages as a conventional refinance. However, your new lender will charge you higher interest rates than you would get from another lender, based on your credit score. These are the same rates that you would receive from a conventional refinance.
The interest rates are determined by a lot of different factors, including the amount of credit, your financial history, your debt to income ratio, and your FICO score. The higher the FICO score, the lower the interest rate. The FHA does not want to raise your interest rate too much since they do not want one to default on the loan.
If you are a first time home buyer, you’ll be expected to pay more for your FHA Refinance than you would for a conventional refinance through a traditional lender. This is because a FHA Refinance program requires that you are an owner or borrower of a house for three or more years before you are eligible for their program.
You will have to pay a higher rate of interest for the first year you are a homeowner, then the interest rate will start to return. You can always change refinance and lenders with the new lender, but you’ll not receive any benefits from the refinancing.