| Many borrowers still find themselves owing more on | | | | F.H.A. Streamline Loans can change often so your |
| their homes than what they are worth. A recent | | | | lender or broker will update you as to current |
| announcement by Fannie Mae and Freddie Mac stated | | | | requirements. |
| that they do not plan to forgive underwater debt. This | | | | While an F.H.A. Mortgage may seem like a great |
| means that homeowners expecting the United States | | | | choice some borrowers may need to spend money |
| Government forgive some of their upside down debt | | | | out of pocket in order to get an F.H.A. Streamline |
| are out of luck. Even though this may seem as bad | | | | Refinance. Some of these costs may include points, |
| news there is a flip side in that it offers to bring stability | | | | impounds and other related closing costs. In most |
| to the bond market and reduce the fear in investors | | | | instances costs can be added to your loan balance |
| that fund mortgages. This also allows for greater | | | | but this will be determined by how much you have paid |
| stability in mortgage interest rates and helps stimulate | | | | down your loan. |
| the free flow of capital. | | | | No closing costs F.H.A. Streamline Loans may be |
| But what are upside down borrowers to do? If your | | | | available if you qualify. Competitive brokers and |
| mortgage is an F.H.A. Insured Mortgage then you might | | | | lenders may offer to pay most if not all of your closing |
| be in luck. An F.H.A. Streamline Refinance allows | | | | costs. While this is not as common as it once was, |
| borrowers to refinance with reduced documentation, | | | | some lender may have this option. Your loan amount, |
| such as no appraisal. This means that if you property | | | | closing costs and current interest rates will determine if |
| has declined in value you may be able to refinance | | | | your lender can offer a no costs option. |
| without an appraisal. | | | | In order to qualify for an F.H.A. Streamline Refinance |
| Some of the F.H.A. Streamline Refinance options that | | | | there are requirements that need to be met. You must |
| may be available: | | | | have made at least six monthly payments. A clean |
| - No Credit No Appraisal F.H.A. Streamline | | | | mortgage payment history is also required on your |
| - F.H.A. Streamline with Credit and Appraisal | | | | mortgage. No mortgage delinquencies are allowed in |
| - No Closing Cost F.H.A. Streamline | | | | the last twelve months or six months if you had your |
| The best choice for those that have no equity in their | | | | loan for six months. |
| home is an F.H.A. Streamline with no appraisal. This | | | | The F.H.A. Streamline must also have a net tangible |
| loan does not require an appraisal for you to qualify. | | | | benefit to the mortgage borrower. In order to qualify a |
| The reason lenders allow for this is that a reduced | | | | borrower must see a payment reduction of at least |
| interest rate will increase your ability to repay your | | | | 5% of their total monthly mortgage payment or a |
| home loan and reduce the likelihood that you will be | | | | reduction in the payment terms. |
| foreclosed upon. So even though you may have less | | | | There are also new revised loan to value restrictions |
| equity then when you started you pose a reduce risk | | | | that are now being enforced. Most Streamline |
| to the lender. | | | | Refinance loans cannot exceed 97.75% of the original |
| In most cases your credit will not be checked on this | | | | value of the home or the current appraised value if the |
| program but you must have paid your mortgage on | | | | borrower chooses to have an appraisal. These |
| time to qualify. In addition, an F.H.A. Streamline | | | | guidelines can and do change so please check with |
| Refinance may require a credit report if you are | | | | your lender for current rules and regulations. |
| adding a co-borrower to your new loan. Guidelines for | | | | |