FHA STREAMLINEYou currently own a home that was bought through FHA home mortgage loan, you are current in your mortgage payments and you wish to refinance to lower your monthly mortgage payments and interest. Perfect! FHA streamline is the one you need. Not only could it save you money but getting it is hassle-free. Getting an FHA streamline refinancing is pretty fast and easy, all you have to do is to ask your lender that you want one and what’s good with it is, it does not require the lender to do an appraisal since it allows you to use the original price as the current value of your home and no need to verify your income.
The “streamline” feature of this type of loan waives the requirement for the borrower to furnish income documents as long as the mortgage has a good payment history. In fact with FHA streamline refinance program it does not matter if your house is underwater, instead it encourages homeowners with underwater properties to take advantage of the program even if you owe twice what your home is worth. And take note, this is without added cost or penalty. This program has unbelievably unlimited loan-to-value ratio.
No Appraisal Needed.
No Credit Verification Required.
No Proof of Income Required.
No Income Verification.
Employment Verification is Not Needed.
Low Fixed Rates
No Cash Out.
QualificationsFICO SCORE: Minimum of 640
DTI: Maximum of 55%
LTV: Maximum of 105%
REQUIREMENTS FOR FHA STREAMLINEExisting FHA Loan
Perfect 3 month payment history/ No default
210 days waiting period between refinances
Purpose for the refinancing
FHA First Class – for FHA Streamline Refinance that replaces loan endorsed prior to June 1, 2009 and will pay lower mortgage insurance.
FHA Second Class – for FHA Streamline Refinance that replaces loan endorsed on or after June 1, 2009, this class pays higher mortgage insurance than the first class homeowners.
FLOW PROCESSSTEP 1: BENEFIT BRIEFING CALL
A telephone call is initiated to find out whether our client will be purchasing new property or refinancing an existing mortgage.
Completing the application process to confirm client’s eligibility for the loan would be faster with better cooperation and accurate information from the client.
STEP 2: LOAN SAVER DIRECT PACKAGE
A package that will contain the loan application and the list of requirements is sent to the client for review and completion.
The client fills out the forms, and signs all the disclosures.
The client gathers all the documents necessary for the loan.
The client mails, faxes, or emails the documents to our loan processing team.
STEP 3: QUALIFICATION
Loan Saver Direct Underwriters reviews the application and all the documents submitted.
The Loan Officer discusses with the client the benefits gained from refinancing. He also sets the right expectations by disclosing all the loan details and fees involved.
If the client is agreeable to the terms, then we will commence with the next step of the loan process.
STEP 4: OPENING ESCROW AND LOAN PROCESS
Loan Saver Direct opens escrow and processes the loan.
An appraisal is requested by the lender, and the client is responsible for paying the cost involved, ranging between $450 to $475.
Final loan documents are released, and the client signs the loan documents with a notary.
STEP 5: CLOSING
The client brings funds to escrow if necessary.
The final closing package from escrow with the new loan terms and closing statement is provided to the client.