2. 30 yr fixed to 15 yr fixed: New payment cannot be more than $50 higher.
Note:
15 yr fixed to 30 yr fixed is not allowed.
3. Fixed Rate to ARM: Owner occupied homes only
4. ARM to Fixed Rate
5. ARM to ARM: Rate must be lower than current loan
6. 203K to 203B
Streamline Refinance Without An Appraisal:
The new loan amount cannot be more than the original loan amount, OR more than the current principle balance plus closing cost. This only applies to owner occupied homes as non-owner occupied borrowers can only refinance the existing balance and
do not have the option of rolling in the closing costs.
The only credit verification required is a verification of on time mortgage payments. This can be done with 12 copies of canceled checks, front and back. If canceled checks are available, no in-file report is required unless the underwriter prefers that method to verify mortgage payments.
Streamline Refinance With An Appraisal:
An
FHA Streamline refinance with an appraisal allows the borrower to finance in the closing costs, discount points, and prepaids provided it all fits within the loan to value (LTV) limits. The new loan amount may be the current principle plus closing costs, discount points and prepaids, OR, the appraised value x 97.75% (97.65%, or 97.15%, high or low cost state). Whichever is less!
If the smallest of these two values is greater than the original mortgage balance, credit verification is required.
Streamline Refinance - "Credit Qualifying":
The loan amount is calculated based on the previous formulas and qualifying requires full employment verification, credit report, and debt to income ratio compliance. Typically these loans are used when the new mortgage payment will be higher, deletion of a borrower on new mortgage, or in assumptions involving due-on-sale clauses.
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Looking for an FHA home loan? Apply Online Now to get up to 4 free quotes to find a great rate. Loan Choice Direct can even help you refinance your existing mortgage to lock in a great fixed rate with an FHA Streamline Refinance.
 Continue to our
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FHA "No Cash Out" Refinance:
This regular no-cash-out loan may be used to refinance an FHA mortgage, VA mortgage, or a conventional mortgage and requires the borrower to fully qualify. Second mortgages may be included in the new loan if they are older than one year or you can prove that the funds were used solely to repair or rehabilitate the home. If not, paying off or including these loans would be considered a cash-out refinance.
This loan can be used to buy out the equity of an ex-spouse provided it is documented in the divorce papers. It is still considered a no-cash-out refinance because this equity is considered indebtedness.
IF the property was purchased less than a year ago and is not currently an FHA loan, the loan amount will be the appraised value plus closing cost, OR the original sales price plus closing cost. Which ever is less!
If the home was purchased more than a year ago and does not have FHA financing, the loan amount should be calculated as the "streamline refinance with an appraisal" above.
About the Author:
Connie Sanders has been in the mortgage business for many years and knows the largest problems are created by a lack of knowledge. Visit her web sites to learn more at:
FHA Mortgage Guidelines or
Free For Sale By Owner. Connie is available to answer any questions you may have.
Article Source:
http://EzineArticles.com/?expert=Connie_Sanders
A professional consultant is always available at Loan Choice Direct, so please call us (1-888-523-8523) today to find the best solution for your needs.
You can also apply with our
quick and easy FHA application and one of our financial consultants will get in touch with you shortly.
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Looking for an FHA home loan? Apply Online Now to get up to 4 free quotes to find a great rate. Loan Choice Direct can even help you refinance your existing mortgage to lock in a great fixed rate with an FHA Streamline Refinance.
Continue to our
online FHA application to get up to 4 free offers. |
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