Wednesday, July 18, 2012

A Look at the FHA Streamline Refinance Idaho

By Elisha Marty


You may be wondering if you are eligible for a streamline refinance ID loan. You are eligible even if you have mortgage which is delinquent by only a few monthly mortgage payments, under certain conditions. However, before going into details of this condition, you should know the basic concept of any type of FHA streamline refinance.

The amount homeowners can refinance with the streamline option depends upon their income, monthly expenses, and credit history (although they are flexible when it comes to credit requirements). These types of loans are described as "streamlined" because of their quick processing and reduced documentation. In order to be eligible for this type of refinance, the borrower's existing mortgage must be current with no delinquent payments within the last year.

The streamlined refinance does not offer a cash-out option and the new loan must either lower the homeowners monthly payments or reduce their loan term. Closing costs associated with this type of refinance can be paid in a couple of ways. The homeowner can opt to have no closing costs, but this may result in a higher rate than what would otherwise be available. If there is enough equity in the home, the homeowner can choose to include the closing costs in the new loan amount, rather than pay them out of pocket or take a higher rate. In this scenario, an appraisal will need to be done in order to document the current value of the home. If no appraisal is done, the new loan amount cannot exceed the original loan amount.

With a streamline refinance, the only credit qualification is that there be no delinquent mortgage payments for at least twelve months. The homeowner also does not have to verify his or her income or employment status. They offer two other refinance options- cash out and debt consolidation. For these options, it does not matter what kind of loan the homeowner currently has. There are credit qualification requirements, but they are flexible.

They is discussing possible changes to the program, including increased mortgage insurance and stricter credit score requirements, so now may be a good time to research your options. Speak with a reputable FHA loan specialist to receive more information on Streamline Refinance Idaho options and how to apply.




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