FHA Streamline Refinance Requirements and Restrictions-Find If You Fit The Criteria
While it could be true that FHA streamline refinance requirements are extremely lenient and that you do not have to have a perfect credit to qualify for the program, still one must be aware of certain restrictions.
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Dec. 17, 2012 - PRLog -- The FHA’s streamline refinance program was implemented during the 1980s to permit refinancing of FHA backed mortgages. It is needless to say that the application process for the plan requires less amount of paperwork Apart from that, borrowers, who are eligible, could also secure numerous other benefits in the form of lowest interest rates, easily affordable monthly payments and low upfront fees. Besides, a borrower also has the opportunity to select loan durations which may vary from 15 years to 30 years. While there may be no costs for underwriting processes even closing charges might get included in the loan amount. Thus, it could be win-win situation for the homeowner as in the long run it will also help him to increase equity in his home. Nevertheless, if you are considering applying for a FHA streamlined refinancing loan, you need to have a fair idea of the restrictions that are in place for earning you a qualification.
The FHA streamline refinance requirements make it amply clear that only those mortgage loans could be eligible to receive benefits offered by the program which have been insured by the FHA. Additionally, borrowers have to make sure that their loans are in good standing and that refinancing results in drastic reduction of monthly payments. Many homemakers may have a notion that by qualifying for a FHA streamline refinance home loan, it could be possible to draw cash. But they may be wrong in their thinking as the plan does not allow borrowers to get any cash benefits. Interestingly, no new home appraisals could be needed to be undertaken by probable applicants who are facing troubles with their existing mortgages and even those who have less than perfect credit have the chance to obtain an approval. With lesser documentation the time required for processing applications could be significantly less.
However, to make sure that your FHA streamline refinance program application is approved quickly, it could be advisable for to seek help from specialist who is thoroughly well versed with the exact requirements of the process. The internet is the best place to locate such assistance as when you go online, you could be able to find firms which teach people how to get approved for FHA streamlined home refinancing. Such agencies that extend online guidance have a nationwide team of mortgage experts who have the desired knowledge and experience to guide borrowers in navigating through the procedure with ease. But one must make sure that he is working with a service provider that is totally reliable and reputable. Reputed mortgage services offer free credit restoration advice which is equally useful for rebuilding financial life.