FHA Streamline Loan

February 1st, 2011

According to multiple national lenders, the FHA streamline loan is the hottest refinance tool in the mortgage industry at the moment.  Since FHA insures home mortgages, they have been involved in the refinance relief and foreclosure prevention solutions for distressed homeowners.  

The FHA loans listed below each have a unique niche for homeowners seeking a more affordable fixed rate refinance.  FHA rates have been breaking records week after week so now is a great time to utilize the streamline refinance in an effort to maximize the monthly savings.

  • FHA Secure Refinance
  • Hope for Homeowners
  • Home Affordable Refinance Program
  • FHA Streamline Loan

Unfortunately, FHA has not had too much success with these programs.  However, the FHA Streamline Refinance program has been able to help borrowers that are looking to refinance their FHA mortgage.  The streamline refinance enables homeowners to get approved for a rate and term mortgage refinance under the standard FHA guidelines without an appraisal, which alleviates a major obstacle preventing refinances from making it to the closing table. In addition, the program does not require the borrower documentation required for most deals. While they must provide proof of employment, homeowners need not provide bank statements, tax returns and other documentation generally associated with a loan transaction. In many cases, a prospective borrower can make it from application to close in half the time of other refinances.

The FHA Streamline Process Simplifies Refinancing

As with any FHA loan program, the step one starts with the borrower.  Many borrowers have been turned down by lenders because of property value and they do not realize that the FHA streamline does not require an appraisal so there really isn’t much of a Loan to Value issue, because borrowers are stating their home values to some degree.  with FHA streamline rates this low, now is the time to reap the low interest benefits and lock into a great rate that is fixed for 30-years.

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