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What is the main benefit of a FHA streamline VS a conventional loan refinance???

by jerrod_hawkins546 from Rockville, Minnesota. Feb 2nd 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

FHA streamline reif's are only available to borrowers with a current FHA loan now.. FHA streamline refi's in most cases, do not require an appraisal, and there is no income documentation required as well.. you do need to be working, but they do not underwrite your income, so you don't need to provide tax returns or pay stubs. The down side to an FHA streamline is that you will have to pay an upfront mortgage insurance fee, as well as a monthly MI fee.. and in most cases the monthly MI is there for the life of the loan.. there are reduced premiums based on when your current FHA loan was initiated, but again only for certain periods.. For Conventional, you will need to pay for an appraisal, and you will need to provide tax returns, W2's and pay stubs and you must have sufficient debt to income ratios to qualify.. the benefit to a conventional loan is that there is no upfront MI required, and if you have 20% equity or more, then no monthly MI is required.. if you have less than 20% equity, then you will pay MI, but it can eventually be removed once you have paid for 2 to 3 years and once you reach 20% equity.. and you wont have to refi to do it.. Conventional loan limits for most of the country is $417K, but FHA is much lower.. typically $271,050, but this could be slightly higher if your property is in a "High Balance" Area.. when you apply for a refi, you should have the loan officer do a side by side comparison of both loan products so you can see for your self what would be better for your particular scenario. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Feb 2nd 2016
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Dan Eveland (daneveland)
#23 ranked lender in Minnesota - 15 contributions

Jerrod,William's response was very accurate and will depend on what your current loan situation is. I'm local in MN if you'd like to discuss your options by phone or meet. Please reach out at 763-242-2974. Thanks!Dan EvelandNMLS #279274Fairway Independent Mortgage Corp.www.LOasap.comdeveland@fairwaymc.com

Feb 3rd 2016
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Deb Muelken (deb@debthemortgagelady.com)
#34 ranked lender in Minnesota - 5 contributions

William Acres is spot on... as is Dan Eveland... checking out your situtation with a local lender is best. You can check with more than one lender for multiple quotes for making your decision. Happy to help, information without obligation, to make educated decisions. Deb Muelken - The Mortgage Lady NMLS#364933 iloan home mortgage nmls#4474deb@iloanhomemortgage.com 651-353-8531

Feb 3rd 2016
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Good information previously. No appraisal is required for FHA but that may not be your best option even though you would not pay for a new appraisal

Feb 3rd 2016
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