I was speaking with someone today about the FHA streamline program and they asked me the following question:
“When I go through the streamline program, do I get to skip a payment?”
To which I replied:
“Technically, you are allowed to defer a payment when you participate in the FHA streamline program, but we officially can’t call it a skipped payment“.
What is the difference between a skipped payment and a deferred payment?
I truly don’t know – but at some point along the way in my mortgage career, someone told me that it wasn’t okay to advertise a skipped payment, but you could call it a deferred payment.
What does this mean?
Simply put… when you participate in the FHA streamline program in order to put yourself in a better financial position, FHA will allow you to defer one months payment. This means if you close your FHA streamline loan in the month of January, you will defer February’s payment and your first payment will be due on March 1.
Skipped payment, deferred payment — no matter what you call it, it is just one more reason to find out if the FHA streamline program can benefit you by lowering your interest rate and putting yourself in a better financial position.