FHA Streamline Refinance program benefits
The FHA Streamline Refinance Program will developed in the 1980s to get borrowers access to a home mortgage refinance without dropping the security of an FHA loan. The FHA Streamline Refinance program gives you a faster way to refinance with less paperwork and better terms. Those aren’t the only benefits, however, the FHA Streamline Refinance helps borrowers is other ways, too:
* Lower interest rates, monthly payments and upfront costs
* No underwriting fees and out-of-pocket costs
* The option of lower terms from 30 to 15 years
* Closing costs that can be included in the loan
*Increased equity for the owner
The simplified FHA Streamline Refinance Program also helps on the administrative end, by cutting out paperwork, like:
* Less required information for the FHA Streamline Information
* Little paperwork
* Often no appraisal needed
* No information checks required for the FHA Streamline Refinance, like income or employment verification
This means the FHA Streamline benefits give you speed and efficiency the loan will be closed quicker and the saving will get to you sooner.
FHA Streamline Refinance Program restrictions
You must trade FHA Streamline Refinance benefits for the minor FHA Streamline Refinance requirement and restrictions. However, if you compare them to other programs, FHA Streamline Refinance restrictions are reasonable. The requirements are:
* The loan must be paid up-to-date, in good standing and not in default
* The loan must be FHA insured
*And the refinance must give the borrower better payments and terms
One of the drawbacks, though, of the FHA Streamline Refinance is that the borrower cannot get cash out as part of the refinance. Since many homeowners are looking for such a program, they may be disappointed when they learn this about the FHA Streamline Refinance. However, this needs to be put in perspective for buyers. While you can’t get cash out of this program, a borrower will improve their monthly payment amount and decrease their loan to value ratio. With that behind them, borrowers can get access to other programs which will give them access to cash, while keeping the FHA Streamline Refinance benefits with a more secure and manageable home mortgage.
Advice for getting an FHA Streamline Refinance
The best place for more information and advice for a FHA Streamline Refinance is a qualified and reputable FHA lender. An FHA lender can look at your current loan and how the FHA Streamline Refinance will benefit you. The way the FHA has made their Streamline Refinance program, you should benefit greatly. Get your FHA Streamline Refinance information, like what your current terms and payments are, and call an FHA lender to see what the FHA Streamline program will do for you.
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