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FHA Streamline Loans - A Great Option for FHA Borrowers

Currently, refinancing a home that you owe a mortgage on seems like a great idea to most homeowners and why wouldn't it? Rates are at historic lows and there are a lot of options out there that can lower your monthly payments and make life a little easier. There are several programs that the FHA have set up to make this possible.

1. HOPE for homeowners is a program that is specifically for those who are drowning in financial debt due to incredibly high interest rates.
2. If you have a more conventional mortgage, then an FHA insured loan can offer some different types of mortgages for you.
3. If you already have an FHA loan, but would like an easy option for refinancing there are what is called an FHA streamlined loan. It is the simplicity of these loans and the fact that there is little paperwork that makes them a great option for busy people who just want to "get it done."

Since you already have an FHA loan, the streamlined loan does not require that you "re-do" the paperwork that would typically be involved in a refinancing situation. There is no credit check or income verification involved in these types of loans. Since you have already proven your good payment history and the bank has faith in your abilities to repay the loan, they don't even ask for a debt-to-income ratio, however, if you have had issues that have affected your ability to repay the loan, it is a good idea to try and review your financial situation before you commit to new loan terms.

FHA Refinancing is Truly Streamline

Another perk of these FHA streamlined loans is that you do not have to foot the bill for another appraisal on your home. The previous one will suffice in this situation; however, if you choose to not have another appraisal done, then the amount of the new loan cannot exceed that of the original loan. On the other hand, if you need more money, you can opt to have another appraisal on the property. It is best to make this decision before you begin the application process since the least amount of road blocks you encounter, the smoother your experience will be.

These new loans are so simple that you may not even have to meet with a loan officer in person! Most lenders have the option to either work things out over the phone or online. It is likely that you will be required to simply sign some legal documents and mail them to the lender in order to complete the process.

Although you won't be getting money back like you would likely do with a typical "cash-out" refinancing program, you will see a lower monthly payment that will last the life of your loan. Over time this extra money in your pocket can have an incredible impact on your financial situation.

An FHA streamlined loan is only for those who live primarily and permanently on the property that is being refinanced. Another thing to note is that if you are behind on your payments, then you will not qualify for this type of loan, however, the HOPE for homeowners program could very well save you from losing your home. There are cities which have such problems. If for instance, you are looking for Phoenix refinance, Las Vegas mortgage refinance, Orlando or Tampa mortgage refinances, you would encounter problems with falling property values. If you are current on your payments but are worried about your ability to make payments in the future, this is the plan for you. Your lender will be able to discuss all the options with you and together you can decide which best suits your needs.

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