Home buyers are often drawn to the FHA mortgage program due to the low interest rates, low closing costs and generally attractive loan terms. However, there will come a time when many who have an FHA mortgage want to refinance. After all, refinancing a mortgage may allow you to tap into your home’s equity, obtain a lower interest rate, extend or shorten the loan term or achieve other goals you may have. While there are different loan programs that you can use to refinance, many are taking advantage of the FHA streamline refinance program.
What Is the Streamline Refinance Program?
This is a unique program that is ideal for many who have an FHA loan, and this includes those who are underwater with their home mortgage. This program is unique from others because there is not an appraisal requirement. Many other programs will offer a certain loan amount based on the current value of the home. When the value has declined since the purchase, it may not be possible to refinance with other loan programs. However, this program is well-suited for such situations, and this is regardless of the amount your home has declined in value.
The Loan Terms
While one of the key selling points relates to the fact that the FHA Streamline program does not require an appraisal, there are other selling points. This is a low closing cost option that can close quickly. In addition, you can choose from a fixed or adjustable rate, and the interest rates are very competitive. There are also 15 and 30-year terms available. Plus, the loan program does not have a prepayment penalty associated with it.
Many borrowers also appreciate the fact that the underwriting process is streamlined, and there is minimal documentation required. In fact, there is not an income or employment verification in place, so you will not have to worry about providing all of the paperwork that would need to provide for other loan programs.
If you have an FHA loan currently, you may be ready to refinance. Regardless of what your current goals are for refinancing your existing mortgage, it is smart to learn more about the FHA Streamline mortgage. With how easy it is to qualify and how attractive the loan terms are, this may be the loan program that you have been searching for. You can speak with a home loan specialist about the qualification requirements and loan terms that you may qualify for under this program.
If you are self-employed, either as a freelancer or as the owner of your own business, your income can fluctuate greatly from year to year. That can make it difficult to get approved for a mortgage, although there are some things you can do to improve your chances. Here are three tips for securing a mortgage if you are self-employed.
One of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home.
Refinancing your home mortgage can be beneficial for you for a number of reasons. As a homeowner, you may have spoken with some of your friends and neighbors who have already refinanced, and you may have heard about some of the different benefits associated with refinancing your mortgage. For example, refinancing can result in a lower mortgage payment, the ability to pay your mortgage off more quickly, reduced interest charges and other benefits. If you have never gone through this process yourself, however, you may not know what to expect with the refinancing process.
FHA loans are designed to help individuals take advantage of the benefits of home ownership, and these loans have low down payment requirements. However, for borrowers who choose to make a down payment that is less than 20 percent of the sales price, the borrower will be required to pay a mortgage insurance premium with the monthly mortgage payment.
If you are like many other homeowners, your home mortgage payment is the single largest expense in your monthly budget. This is a fixed expense that you will typically be responsible for until your loan is paid in full or until you sell your home, and you may have a 15, 20 or even 30 year term on your mortgage.
There are several factors that are reviewed when you apply for a home mortgage, and one of the initial factors is your credit rating. You may already be aware that you have a lower credit score, or you may have learned about your credit issues after speaking with a mortgage professional. Now that you are aware of the situation, you may be concerned about your ability to get approved for your loan request. The good news is that you may still be able to get a mortgage without a favorable credit history with a few things.
From time to time, a homeowner may struggle to make a mortgage payment on time. Most will be able to make the missing payment a week or two later when the next paycheck arrives. However, others may find themselves in a situation where they are unable to make multiple payments in a row.
A rental property is a wonderful investment option to consider, and it can provide you with everything from considerable tax benefits to appreciation and monthly cash flow. While you may be eager to get started searching for a new rental property to invest in, a good idea is to take the initial step to get pre-approved for your mortgage.
One of the most common questions home buyers ask today relates to how much money they need to put down on a home. There are mortgage requirements in place that establish minimum down payment requirements, and some home buyers will barely have enough to pay the minimum down payment as well as closing costs. However, if you have access to more money, you may be wondering if you should make a larger down payment. There are several points to consider to determine if making a larger down payment is right for your financial situation.