Interest rates have fallen over the last week – to the point where if you are currently in an FHA loan, it probably makes sense to call your mortgage professional about the FHA streamline refinancing options.
The FHA streamline program has been around since the early 1980’s and is designed for people who currently have an FHA loan to lower their interest rate without having to completely re-qualify for a new loan.
Here are 5 important things to know about the FHA streamline refinance program:
- If you currently owe more than your house is worth, the FHA streamline program is one of the few refinance options that you have because it is possible to do an FHA streamline without an appraisal.
- If you were to participate in the FHA streamline program in the month of December, your first mortgage payment would be due February 1 – which means that you would effectively defer or “skip” your January mortgage payment.
- When you participate in the FHA streamline program, you will get a refund for whatever is left in your current escrow account — a new escrow account will be fully funded when you set up your new FHA loan.
- When qualifying for an FHA streamline, one important criteria is that you have made your last 12 months mortgage payments on time — although there can sometimes be exceptions made for up to 2 x 30 day late payments.
- When qualifying for an FHA streamline, no income documentation is required.
Is the FHA streamline program right for you? Find out now while interest rates are low… the FHA streamline program only makes sense when interest rates dip and you can take advantage of them before they go back up.