FHA Streamline Refinance Program

If you currently have an FHA-insured mortgage and want to refinance it, Streamline FHA refinance is something you should be aware of. Though it has been around since the 1980s, the recent drop in mortgage interest rates, coupled with the credit crunch has made this product more interesting.Get Started Now!

FHA Refinance Requirements

There are four criteria you must meet in order to be eligible to use the FHA streamline refinance program. They are:

While the basic idea is to lower your mortgage interest rate quickly and with minimal paperwork (hence the name FHA Streamline Refinance), there are a couple of different options that lenders offer. The first is usually referred to as “no cost.” While there are closing costs associated with the loan, in this case the lender charges a higher interest rate. With that higher FHA streamline refinance rate, the lender recoups the closing costs.

The second FHA mortgage refinance alternative you'll encounter is one in which the lender will fold the closing costs into the amount being refinanced, which only works if you have enough equity in your home. With this approach, the lender will require an appraisal. In the first instance, an appraisal is not required, as long as the amount of the refinance is not greater than the original loan amount. If you do not reside at the property you want to refinance, and so it is considered investment property, you cannot refinance more than the original loan.

FHA Short Refinance Program

If you are a homeowner who owes more on your house than it is currently worth, AND you have been turned down for a loan modification because you are current in your payments, the FHA may have a program for you. It's called FHA Short Refinance and it was introduced in the fall of 2010. Though this new FHA refinance program may seem to have too many conditions, the FHA estimates that as many as 1.5 million homeowners may qualify to get into FHA-insured loans with lower rates – the loans are actually made by private lenders and there are no FHA refinance rates.

FHA Short Refinance Option

The bottom line to qualifying for an FHA refinance using the Short Program, is to have a house that is no longer worth what you paid, but one that you can still afford. That may sound counter intuitive, but FHA is actually riding to the rescue of those who should have been helped originally. The expectation is that this loan will work best for home owners who have adjustable rate or interest only mortgages that will balloon in the near term and make your house unaffordable. Rather than have another round of foreclosures and short sales, this FHA refinance program will make it possible for you to stay in your home.

Obama Second Mortgage Plan has brought immediate sigh of relief to the homeowners who were passing sleepless nights as they were not able to pay back their first mortgage easily.

FHA Short Refinance Guidelines

While FHA refinance loans could put taxpayers at risk, in the event of future defaults, the government has put $14 billion aside to cover this eventuality .Fill Up Small Application Form to Check Your Eligibility for FHA Refinance Program