STREAMLINE FHA MORTGAGE LOAN PROGRAM

Streamline FHA Mortgage Loan Program

If you are considering moving forward with a mortgage refinance, make sure to explore all the financing options available to you, such as a Streamline-FHA Mortgage Loan Program. Many borrowers assume that conventional financing is the best solution. In actuality, other programs might be the better option, depending on your particular scenario.1

FHA offers several benefits over conventional financing. One benefit is that an FHA Streamline Refinance offers a lower credit score requirement compared to conventional mortgages.4 If you have struggled with or are still looking to build your credit, an FHA mortgage might be the solution for you.

Another benefit of going with FHA is you can opt to go with a streamlined refinance if the loan you are paying off is already insured by FHA. Your mortgage does have to be current (meaning not delinquent) and the refinance must offer a tangible benefit to you as the borrower (an example might be lower your interest rate).3

The benefits of choosing to Streamline Your FHA Mortgage refinance is that the lender does not need as much documentation to approve and close the loan. Streamlined refinances require far less documentation meaning you can close on your mortgage refinance faster. They also often don’t require an appraisal and can limit your out-of-pocket costs!3

Streamline-FHA Mortgage Loan Program – FHA Options

Under the FHA streamline refinance umbrella you can choose from a variety of options. Such as the FHA Streamline  Fixed Rate Refinance or FHA Streamline, Adjustable Rate Refinance.4 Both of these options solutions are great depending on if your goal is to lower your payment and/or interest rate or for those selling their home in the upcoming years.4

Looking to make some home improvements or renovations? FHA has a solution for that as well. Consider the FHA Streamline 203k Fixed Rate Refinance product to pull equity out of your home to finance your home improvement projects.4

Streamline FHA Mortgage Loan Program Options

Below are some of the potential solutions available under the FHA streamline refinance umbrella:

  • FHA Streamline Year Fixed Rate Refinance – An option for borrowers looking to lower their payment. By lowering their existing interest rate or extending their repayment term. This solution is also for those looking to switch from an FHA adjustable rate mortgage to a fixed rate option. No appraisal is required.4
  • FHA Streamline Adjustable Rate Refinance – For those looking for an adjustable option, this solution has a competitive rate for the first five years after which the rate can adjust and fluctuate depending on market rates. So this solution might be good for those looking to sell their home within a set short time period.4
  • FHA Streamline 203k Fixed Rate Refinance – This solution is great for borrowers looking to utilize equity in their home. By allowing them to finance home improvements or renovation projects. Some limitations on the amount of cash that can be taken out.4,5

If your current mortgage is not an FHA loan, you can still refinance into an FHA mortgage. Even if you didn’t use FHA to purchase the home, FHA financing solutions may still be available to you. While a streamlined refinance might not work, you can still take advantage of other competitive features built into an FHA insured loan.2

If you have questions about what a mortgage is, completing your refinance calculation, or FHA refinance solutions, contact New Century Mortgage, a preferred FHA provider.

Sources

1 What is a mortgage? (n.d.). Retrieved May 28, 2020, from https://www.consumerfinance.gov/ask-cfpb/what-is-a-mortgage-en-99/

2 The Federal Housing Administration (FHA). (n.d.). Retrieved May 28, 2020, from https://www.hud.gov/program_offices/housing/fhahistory

3 Streamline Your FHA Mortgage. (n.d.). Retrieved May 28, 2020, from https://www.hud.gov/program_offices/housing/sfh/ins/streamline

4 FHA Streamline Refinance Loans – Learn About 2020 Mortgage Options. (n.d.). Retrieved May 28, 2020, fromhttps://www.fha.com/fha_streamline_refinance

5 Streamline Refinance Your Mortgage: HUD.gov / U.S. Department of Housing and Urban Development (HUD). (n.d.). Retrieved June 10, 2020, from https://www.hud.gov/program_offices/housing/sfh/ins/streamline