FHA Streamline Refinance - Good for Atlanta Homeowners and Good for the Atlanta Economy
According to Corelogic, 1 in 3 Atlanta homeowners are underwater on their mortgage. That is not a typo, 33%+ have negative equity.
Most think they are stuck in their high interest rates. Some of them are right, but many Atlanta homeowners have refinance options!
We've discussed the HARP 2.0 Refinance for homeowners with Fannie Mae or Freddie Mac mortgages. VA, USDA and FHA borrowers have options as well.
Nearly ALL mortgage products have NO APPRAISAL REFINANCE options that are not concerned with equity. FHA Included.
News of mortgage rates repeatedly hitting new record low points has been reported since late 2011. Thousands have taken advantage of Atlanta refinance loans at these historic rates to lower their monthly payments, decrease the amount of interest they will pay, and/or shorten their loan terms.
Still, there are many homeowners who are paying more than they need to each month for their mortgage, who could benefit by refinancing at today's low Atlanta mortgage rates. So what's stopping them?
For some, it's simply that the refinance process seems daunting. They worry it will cost a lot out of pocket, and take an inordinate amount of time and effort to get from application to closing.
This does not have to be the case, particularly for those with an existing FHA loan, due to the FHA Streamline Refinance option.
What is an FHA Streamline Refinance?
This specialty FHA loan allows homeowners to refinance an existing FHA mortgage into a new loan through a simplified process with less paperwork, and lower costs when compared to a traditional refinance.
Unlike most home loan programs there is no appraisal requirement. The original purchase price is used as the property value rather than current market value determined by an updated appraisal.
In addition, there is no minimum equity requirement, income requirement, or credit score requirement. It is important to understand that these are the guidelines set by the FHA, and each mortgage lender may have additional requirements as it is the lender who ultimately provides the financing.
Still, because FHA loans are backed by the Federal Housing Administration, and protected against losses from default or foreclosure, lenders are typically able to provide borrowers with better terms than they could were they bearing the full risk of making the loan.
Who Qualifys for a FHA Streamline Refinance?
As with any mortgage program certain criteria must be met in order to qualify. In an FHA streamline some of these criteria include:
- Existing FHA loan must have been taken out at least 6 months earlier.
- Borrower(s) must be current on the existing mortgage, with no late payment in the previous 12 months.
- There must be a benefit to the borrower(s) such as a lower monthly payment or moving from an adjustable rate mortgage to a fixed rate loan which eliminates the risk of future rate increases.
To learn more or to start the application process for an Atlanta FHA streamline refi simply contact an FHA approved lender.