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FHA Streamline Refinances: No Longer Requires Middle Credit Score
Traditionally, FHA streamline refinances have required the middle of the three credit scores. Now only the highest credit score is used, opening the doors for many homeowners to refinance their high interest rate FHA loans.
Mortgage lenders pull three credit scores from each credit bureau and the middle score is commonly used. "That's changed," says Scott Sheldon a senior loan officer and founder of Sonoma County Mortgages. The credit score needed for an FHA Streamline Refi is still 640, however lenders' using the mid-credit score for eligibility is obsolete."
Today, a homeowner with an FHA Loan, can refinance with whichever credit score of the three scores, is 640 or higher. "The middle score is no longer used, enabling more homeowners with high interest rate loans to refinance into more affordable mortgages" says Sheldon.
Sheldon has seen a strong surge in refinance activity in the last 60 days on both FHA and Conventional Mortgages. " We have seen borrowers consistently locking rates under 4.0% on 30 year mortgages."
Scott Sheldon originates both FHA and Conventional fixed rate home loans. Sonoma County Mortgages provides users with the latest mortgage news and tips.
Visit http://www.sonomacountymortgages.com to search loan programs and mortgage rates today.
Page Updated Last on: May 25, 2012