Back on March 26th HUD announced they were putting together an FHA Loan Program to allow an FHA Refinance for Borrowers in Negative Equity Positions.
Guess What?
It’s here…
Well kind of. At least that’s what FHA is telling us in the most recent HUD Mortgagee Letter 2010-23 which was just released. Now, like all the great exciting FHA Refinance Loan programs HUD has been releasing which were supposed to help upside down home owners I seriously doubt this one will work either.
The whole idea is to provide an FHA Refinance opportunity to certain responsible borrowers who owe more on their mortgage than their house is worth. This enhanced FHA Refinance Loan through the Making Home Affordable Program is designed to allow certain homeowners to refinance into a shiny new FHA Refinance Loan.
But let’s take a look at how it is supposed to work, effective September 7 2010:
FHA Disclaimer: “Participation is Voluntary and requires the consent of lien holders. In order for a loan to be eligible, it must…”
The homeowner MUST be in a negative equity position; (most Arizonans have this covered)
The homeowner MUST be current on the existing mortgage; (being late during the last 12 months any more than 30 days, and any more than 1 time will keep you from getting into this program)
The homeowner MUST occupy the subject property (1-4 units) as their primary residence;
The homeowner MUST qualify for the new loan under standard FHA Loan underwriting requirements and posses a credit score greater than or equal to 500; (okay, here is where it gets sticky. Most lenders are requiring a credit score of 640 to qualify AND as of the time of this writing there is not a single FHA approved lender planning on participating in this program. Based on HUD reps and warranties, don’t expect any to climb on board.)
The existing loan MUST not be an FHA loan;
The existing first lien holder MUST write off at least 10 percent of the unpaid principal balance; (if you are current on your loan and have been making the payments what lender is going to write off 10% or more of your current loan? I seriously doubt Bank of America succumbing to this)
The new FHA Loan MUST have a loan-to-value of no more than 97.75%; (you won’t be underwater anymore)
If there is a current 2nd mortgage, it must be re-subordinated and the combined loan-to-value cannot be more than 115%;
The existing loan to be refinanced MUST not have been brought current by the existing first lien holder
I think this will end up being as effective as all the other programs that this administration has created to help upside down struggling home owners…
What do you think?
Do you think this will actually help Arizona Home Owners? Do you think lenders will take a short payoff for home owners who are current and have not gotten behind in the last 12 months? Please let me know what you think by leaving a comment below.
The New Arizona FHA Mortgage Loan Refinance Option For Home Owners Who Owe More Than Their Home Is Worth..
You heard it here first.. renewed Hope for Home Owners..
David Stevens of HUD just announced that the Obama Administration is putting together an FHA Refinance program that will allow for a homeowner who is upside down on their home (sounds like all of us in Arizona, doesn’t it) to refinance into an Arizona FHA Mortgage Loan.
They anticipate the FHA Refinance program to be available within the next few months.
The FHA Streamline Refinance without an Appraisal and without a Credit Score
The FHA Streamline Refinance has changed quite a bit since HUD issued the HUD Mortgagee Letter 09-32. So we have revised our FHA Streamline Refinance programs for new loans to fit properly and to provide the most benefit to our borrowers.
There are many changes, but there is also some great news about the FHA Streamline Refinance and credit qualifying.
The first update to the FHA Streamline Refinance is that it does not require a credit score for qualifying. Qualifying for the new FHA Streamline Refinance requires that we provide a current mortgage rating only, no credit scores. This is important as the vast majority of FHA Lenders are now requiring a minimum of a 640 middle credit score to qualify, even if it is an FHA Streamline Refinance. I have seen this help families lower their monthly payments dramatically even if the primary borrower has a very low score, such as 540.
The second update is that now the FHA Streamline Refinance requires borrowers to verify their jobs. And the third change is the FHA Streamline Refinance now requires the verification of assets, if assets are required to close the new loan.
Best of all, the FHA Streamline Refinance can still be done without an appraisal in Arizona as long as the principal balance of the new loan does not increase.
We help families lower their monthly mortgage payments through the FHA Streamline Refinance from Flagstaff to Scottsdale to Tucson to Yuma. So if you’d like to find out how much you can save, click the Get Started tab above and we’ll let you know right away.
FHA Streamline Refinance – Do It Now Before It Leaves The Building…
For those of you who currently have an existing FHA Mortgage Loan and are in a position to lower your existing FHA Interest Rate, it is important to act now before the FHA Streamline Refinance exits the building.
I found a great article at The Mortgage Porter about the FHA Streamline Refinance changes. You should take a look at it. She summarizes in detail the revisions HUD is making to FHA Streamline Refinances. These FHA Refinance changes are going into effect for new FHA case numbers issued after November 18, 2009. To be sure that you don’t miss the cutoff date it is important that you put your FHA Streamline Refinance application in several days BEFORE November 18th.
The bottom line impact is that an FHA Streamline Refinance will take longer, be less convenient, and potentially cost more.
You can use the FHA Mortgage Calculator to see what your new payments would be with an FHA Streamline Refinance.
You can refinance your Arizona FHA Mortgage Loan without an appraisal and without any credit or income re-qualifying what so ever. The AZ FHA Streamline Refinance takes the hassle out of getting a permanent interest rate reduction on your Arizona FHA Mortgage Loan.
In the 1980′s HUD created a loan program designed to “streamline” the refinance process for homeowners with existing FHA Mortgage Loans. The result is the FHA Streamline Refinance.
The four basic requirements of the Arizona FHA Streamline Refinance:
Your current mortgage must be an FHA Mortgage Loan
Your current FHA Mortgage Loan SHOULD be current
The FHA Streamline Refinance MUST result in a lower payment
Cash Out Refinances are not permitted under the AZ FHA Streamline Refinance
So, if your current interest rate is over 6% or so; you should consider looking at an Arizona FHA Streamline Refinance to get into today’s low rates.
Download the application-pack-for-fha-streamline and watch the video “FHA Streamline Application Instructions – How to Refinance Without an Appraisal.”
Government has been under enormous pressure to stabilize home prices and prevent foreclosures. As a result the Feds have been injecting tons of liquidity into the Mortgage Backed Securities markets and DRIVING RATES DOWN. This is the opportunity to take advantage of the FHA Streamline Refinance Rate Reduction mortgage loan.
** IMPORTANT ** Homeowners with existing FHA financing have a unique opportunity RIGHT NOW to ensure that they always have the lowest rates available . Watch this 3 minute video and find out exactly what it does and does not take to have a Lifetime Great Rate with FHA Streamline Refinance Rate Reduction.
There are only 3 easy rules to putting this program to work. Watch this video to learn about the 3 rules and what it takes to get a Great FHA Mortgage Rate for life!
An AUTOMATED Rate Alert Notification can be set by clicking on RATE ALERT. Just set the rate that saves you cash and you’ll automatically be notified when it hits. Never miss the Great Rate Boat again!
If you know someone with an existing FHA mortgage loan, this is information you’ll want to forward to them.
Is your Arizona FHA Mortgage Loan stressing you out because you owe more than your house is worth?
If you have an Arizona FHA Mortgage Loan and you’ve been trying to get an FHA Refinance with today’s HOT Mortgage Rates, but couldn’t because you’re upside down on your house; I have great news for you.
The FHA Refinance Lifetime Mortgage Rate Rolldown program allows you to get a new Arizona FHA Mortgage Loan without obtaining an appraisal.
Who can the FHA Refinance Lifetime Mortgage Rate Rolldown program be good for:
