Simple FHA refinancing allows you to keep your out-of-pocket costs very low and possibly get much lower interest rates when home equity becomes available. Many borrowers wonder about the benefits of simple FHA refinancing compared to optimized refinancing. Why go through the credit rating process when you can avoid the hassle? Both types of refinancing can benefit the borrower depending on the situation. Streamline is a good option for refinancing homes that haven't risen much in value, or if you plan to sell your home soon, so you want to avoid adding closing costs to your capital.
Depending on your immediate needs and long-term goals, your loan agent will be able to help you make the best decision. If you currently have an FHA mortgage, simplified FHA refinancing is the easiest way to get a lower rate and monthly payment. The Carrington Mortgage Services, LLC FHA Simple Refinance Program is a cashless option for existing FHA-insured home refinance loans. No 6 full payments required (210 day requirement) as with a typical FHA Streamline loan.
Carrington has the loan programs and services that allow you to deliver to your borrowers with credit problems. Because you provided income verification when you initially applied for your FHA mortgage, you don't need to do it again.
FHA Simplified RefinanceConsiders Your Initial Eligibility Also Valid For Refinance. There is no requirement to obtain copies of your W2, tax returns, or proof of income from your employer.
While a typical loan refinancing process can take 45-60 days, the FHA Streamline refinance can be processed in about a month or a few weeks. Since you are already an FHA customer and the FHA-approved lender will have your documentation on file. By helping homeowners refinance for more affordable home loans, the FHA is truly protecting itself from having to pay private lenders for loans that have failed to meet their obligations. An FHA Streamline is the quickest and easiest way for FHA-insured homeowners to refinance their mortgages with today's low mortgage rates.
However, you could still be approved for an unqualified FHA Streamline Refinance credit option. With the FHA Simplified Refinance Program, the sooner you refinance, the higher your repayment and the lower the total loan amount for your new mortgage. An FHA Optimized Refinance Loan that doesn't qualify for credit won't affect your credit rating much because your new loan balance will be about the same size as your previous loan balance. Homeowners with older FHA loans should consider refinancing with a conventional loan to get rid of IPM.
The term FHA simplified refinance refers to a mortgage refinance option available to homeowners who purchased their home with an FHA loan. Unlike other refinancing options, FHA doesn't allow you to include closing costs in your mortgage loan balance. Sounds like big savings, but in practice, borrowers with older FHA loans may prefer different refinancing options. The biggest difference between the FHA Streamline and more traditional mortgage refinance options is that the FHA Streamline does not require a home appraisal.
Many borrowers with older FHA loans already have at least 20% equity and could refinance without any mortgage insurance, but not with an FHA loan. Another great advantage is that it's quite easy to get an FHA Streamline Refinance loan, especially the type that doesn't qualify for credit. This way, with its FHA Streamline Refinance program, the FHA doesn't care if you're underwater on your mortgage. .