TexasLending.com has been fielding quite a few questions about the new FHA Streamline Program. Many homeowners want to know if they qualify and whether the program is the right fit for their individual situations. Here, TexasLending.com addresses some of the most frequently asked questions about the FHA Streamline Program.
Q: Does my loan have to be FHA to qualify?
TexasLending.com: The FHA Streamline Program is available only to those who already have FHA mortgages. If your mortgage was through Fannie Mae or Freddie, you won’t qualify. TexasLending.com can work with FHA mortgage holders who think this might be a good fit for them.
Q: What if my home won’t appraise for its original value?
TexasLending.com: That’s the intent of the Streamline program. The FHA Streamline Program uses your home’s original purchase price for the refinance value.
Q: What if I owe more than my home is worth?
TexasLending.com: This program actually is geared toward helping those who are underwater in their mortgages, which is a situation that applies to all too many homeowners these days.
Q: Will employment verification and a credit check be required?
TexasLending.com: The FHA Streamline Program only requires verbal employment verification. There is no requirement for income verification, or a credit check.
Q: That sounds too good to be true. What is required to qualify?
TexasLending.com: While TexasLending.com has seen people who are unemployed with bad credit successfully qualify for the FHA Streamline Program, one thing that is important is that you have paid your mortgage on time for the past twelve months.
Q: What if I have only one 30-day late in the past year?
TexasLending.com: You won’t qualify, but TexasLending.com may be able to help you find other options.
Q: What if I only bought my house a couple of years ago?
TexasLending.com: We can work out the details of your individual case, but if your home loan was signed before June 1, 2009, you’ll qualify for lower mortgage insurance. If your home is more recent than that, you’ll still qualify, but at a higher mortgage insurance rate.
Q: What if I purchased my home within the past year?
TexasLending.com: The FHA Streamline Program requires six months of on-time payments on your current FHA loan before refinancing is a possibility. TexasLending.com can help new homeowners work out what to do within those first 210 days to qualify for the program.
Q: Has TexasLending.com found any other requirements attached to the FHA Streamline Program?
TexasLending.com: The entire intent of the FHA Streamline Program is to “streamline mortgages” to reduce the principal/interest/mortgage insurance ratio for homeowners. We look over a homeowner’s mortgage to make sure the net tangible benefit is in place before the homeowner completes the paperwork.
Q: What if I can’t afford the closing costs?
TexasLending.com: We can help homeowners determine if they qualify for a zero-finance FHA Streamline refinance.
TexasLending.com is a Dallas/Fort Worth-based mortgage lender that specializes in providing one-on-one consultations with clients. Founded in 2001, TexasLending.com has the ability to help Texas homeowners with a variety of mortgage lending needs. TexasLending.com has won the Consumers’ Choice Award for five years straight, prompting recognition by both the governor and mayor.
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