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By: Rosemary Rugnetta | June 13th, 2013
Many homeowners have taken advantage of the FHA streamline refinance program which is a quick and easy way to move to a better mortgage. While home buyers may think twice before opting for an FHA home purchase loan due to changes in guidelines, this is not the case for those who are refinancing. The FHA streamline program is still a bargain for homeowners who have FHA loans.
With the FHA streamline, the loan to value is insignificant. While other FHA guidelines have become stricter, the streamline with no cash out does not require a credit check or income verification. FHA uses the current mortgage payment history as proof of credit. It is required that the borrower have a satisfactory on-time mortgage payment history with FHA.
A current loan to value ratio is not necessary which means that an appraisal is not ordered by the lender. The FHA guidelines allow the use of the original value of the property when processing a streamline loan.
At this time, FHA loan rates are still low and competitive. In fact, as mortgage rates have been fluctuating, FHA loan rates are currently lower than conforming rates. With this in mind, the FHA streamline program is still a bargain for homeowners who already have older FHA loans. As an added benefit for homeowners who have FHA loans that were endorsed prior to June 1, 2009, the upfront and annual mortgage insurance premiums continue to be drastically reduced, an offer that is available until the end of 2013.
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