Home owners in Georgia that currently have an FHA mortgage should take note of the FHA streamline refinance. Recent improvements to the FHA streamline refinance program means that not only is no appraisal required, but the closing costs for this new streamline refinance program has been dramatically reduced!
The FHA streamline refinance program requires that the new loan be an “FHA to FHA transaction” only, meaning only current FHA loans can qualify. Second, credit requirements ask only for a 600 credit score and no late payments on your mortgage in the past 12 months. Finally, limited to no income information is needed for the FHA streamline refinance program.
Because this program does not require an appraisal it means that those with an FHA loan can refinance even if they owe more than their home is worth (unlimited loan to value) As long as the basic requirements of the FHA streamline application can be met, no appraisal is needed. This saves both time and money.
There is a tradeoff when not requiring an appraisal for an FHA streamline refinance when it comes to closing costs. In some cases, closing costs may not be rolled into the new FHA loan in this instance. They will likely be paid for out of pocket at the closing table or your loan officer can offer you some special programs that help to reduce or eliminate these costs.
One closing cost that may be rolled into your loan amount is the upfront mortgage insurance premium or “UFMIP” Traditional FHA loans require this UFMIP to be 1.75% of the loan amount in most cases and while you can still roll this into your loan it’s still a fee that needs to be recognized. However, the new version of the FHA streamline refinance program in Georgia that took effect drastically reduces the UFMIP of the loan.
The new FHA streamline refinance makes the process simple and is fast becoming the refinance program of choice for those with an FHA loan. Whether you are located in Atlanta, Savannah, Columbus, or Macon – the benefits are many so you should schedule some time to see if this program is right for you. It’s no secret that mortgage interest rates are currently at historic low levels and many eligible Georgia homeowners can save hundreds on each month.
Learn more by calling ph: 904-810-2293 today.