WHAT IS FHA MORTGAGE REFINANCING? 

Getting a new FHA insured mortgage to replace your current mortgage called FHA refinancing. FHA refinancing can be completed when a homeowner needs a refinance outside of the traditional conventional mortgage refinancing guidelines. When you refinance with FHA the first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate. Borrowers with bad credit and even no credit score qualify for an FHA mortgage.every day.

FHA MORTGAGE CASH-OUT REFINANCE ADVANTAGES INCLUDE:

• FHA Cash Out Refinance up to 85% for existing or new FHA mortgages.
• FHA Cash Out up to 85% of your properties value.
• Consolidate any type of first and second mortgages into single FHA loan.
• FHA Mortgage Refinance For Bill consolidation.
• Easier credit and income qualifications.
• FHA regulated closing costs make it the most affordable.

96.5% RATE OR TERM FHA MORTGAGE REFINANCE:

• Low Fico Score OK
• Easier credit and income qualifications.
• FHA Refinance to Consolidate first and second mortgages one FHA mortgage.
• FHA Refinance Land contact.
• FHA Refinance a Rent TO Own Purchase.
• Easier credit and income qualifications.
• FHA regulated closing costs.

STREAMLINE FHA MORTGAGE REFINANCE:

• FHA refinance your current FHA mortgage with NO Appraisal!
• No Cost Interest Rate Reductions programs.
• No Income or Credit Qualifications.
• Easily switch from Adjustable mortgage to FHA Fixed Mortgage
• Easily shorten or lengthen term of your existing loan.

FHA CASH-OUT MORTGAGE REFINANCE: If you have built up equity in your home and your financial situation may benefit by access to extra cash, you may want to consider an FHA Cash Out Mortgage Refinance.FHA Cash Out Mortgage Refinancing may be right for you if you would like to:

• Reduce the amount of high-interest debt you have, including credit cards or student loans
• Pay off Higher Interest Debt
• Obtain cash for medical bills or other expenses
• Plan a Special vacation or spend the funds as you wish.

If you are looking to get FHA cash out of your refinance mortgage, the process of refinancing into an FHA loan will be similar to applying for a mortgage when you are buying a home. This includes obtaining an appraisal for the value of your home and supplying financing documents.

WHAT IS AN FHA STREAMLINE REFINANCE? The FHA Streamline Refinance is a special mortgage product provided by FHA mortgage lenders for homeowners with existing FHA mortgage loans. FHA streamline refinancing are the fast and easy way for FHA-insured mortgage loan occupants to refinance their current mortgage loans into today’s low mortgage rates.

FHA STREAMLINE MORTGAGE REFINANCE SUMMARY- The FHA Streamline mortgage refinance is available to homeowners that currently have an FHA mortgage. The FHA Streamline refinance program waves much of the required documentation required by  FHA mortgage lenders, including a new FHA appraisal, income verification, bank statements. Streamline refinance refers to the refinance of an existing FHA-insured mortgage requiring limited borrower credit documentation and underwriting. Streamline refinances are available under credit qualifying and non-credit qualifying options. “Streamline refinance” refers only to the amount of documentation and underwriting that the lender must perform, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are Homeowners with an FHA mortgage can use the streamline refinance program to lower their FHA (MIP) mortgage insurance premiums and lower their interest rate with a fast and easy streamlined process.

FHA STREAMLINE REFINANCE REQUIREMENTS:

• The FHA mortgage to be refinanced must be current (not delinquent).
• The FHA mortgage to be refinanced must already be FHA insured.
• The FHA refinance results in a net tangible benefit to the borrower.

The definition of net tangible benefit varies based on the type of FHA mortgage being refinanced, and the interest rate and/or term of the new loan
Cash out in excess of $500 may not be taken out on FHA mortgages refinanced using the streamline refinance process.

DIFFERENCES WITH AN FHA STREAMLINE REFINANCE- The biggest difference with an FHA streamline refinance is that you do not need a new FHA appriasal to lower your interest rate and FHA mortgage insurance premiums. In place of a new FHA Appraisal with a streamline FHA mortgage refinance you can use the original purchase price as your home’s current value, regardless of what your home current  worth today. As a result of the FHA streamline refinance program regardless of what your home is worth today, even if you underwater can still lower their current monthly mortgage payments.

FHA REFINANCE WITH NO APPRAISAL, NO INCOME, NO JOB OR CREDIT VERIFICATION- When a homeowner with an FHA Mortgage uses the FHA streamline refinance there is No Income, No Appraisal, No Income or Job Verification!The biggest advantage is that the FHA Streamline Refinance is very easy to qualify for and faster to complete than a regular refinance transaction.

Aside from the “no appraisal” trait, for the most part, the FHA Mortgage Streamline Refinance performs just  like any other conventional mortgage refinance program. You can FHA streamline mortgage refinance and get either a 15 year or 30 year term; and there’s no FHA prepayment penalty with any FHA mortgage.

Another big plus of an FHA mortgage refinance rates are the same in the FHA Streamline Refinance as with a “regular” FHA mortgage refinance. There’s no penalty for being underwater or being upside down on your mortgage. Earlier this decade, in an effort to help U.S. homeowners  during the housing collapse, the FHA mortgage refinance abolished most of the typical verification’s required to get a FHA mortgage. 

FHA MORTGAGE REFINANCE INFORMATIONAL LINKS

• What are the procedures for correcting an endorsed new case to update the Refinance Authorization?Following are the procedures for correcting an Endorsed New Case to update the Refinance Authorization / Refinance Credit information from the Prior / Old Case: 1.  Lender – Contact the Homeownership Center (HOC) via the.
• Can repairs for energy efficiency be included in a Streamline Refinance?(b)        o     Purchase        o     No cash-out refinance •     203(h) Mortgage Insurance for Disaster Victims  •     203(k) (Standard.
• Does FHA allow cash out refinances?A Cash-Out Refinance is a refinance of any mortgage or a withdrawal of equity where no mortgage currently exists, in which the mortgage proceeds are not limited to specific purposes. Nonprofit agencies, state and local government.
• Is a lender on a streamlined refinance liable for any HUD violations or fraud on the original loan?NON-CREDIT QUALIFYING STREAMLINED REFINANCELenders that originate non credit-qualifying streamlined refinance transactions of loans originated by another FHA lender are not liable for fraud, misrepresentation, or violations of HUD.
• What is an FHA Simple Refinance and what are the requirements?Simple Refinance refers to a no cash-out refinance of an existing FHA-insured mortgage in which all proceeds are used to pay the existing FHA-insured mortgage lien on the subject property and costs associated with the transaction.   Simple.
• Is there a quick and inexpensive option to refinance my FHA mortgage?FHA allows borrowers to streamline refinance an FHA-insured loan. The ‘streamline’ refers to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved.
• Can I Streamline Refinance my FHA Secure loan?Borrowers who refinance their delinquent non-FHA ARM loan into FHA Secure and subsequently wish to refinance to another FHA-insured mortgage must use a refinance product that requires full qualifying, e.g., a rate and term refinance.
• What is the difference between an FHA cash-out refinance and a rate and term refinance?A Cash-Out Refinance is a refinance of any mortgage or a withdrawal of equity where no mortgage currently exists, in which the mortgage proceeds are not limited to specific purposes. A Rate and Term refers to a no cash-out refinance.
• Can lenders see the existing unpaid principal balance for an FHA-to-FHA refinance in FHA Connection?Beginning Saturday, October 15th, 2011, FHA Connection will return the Unpaid Principal Balance values for all FHA-to-FHA Refinance cases. This data will be stored on the CHUMS/FHA Connection database but will not be used in any edits.
• Is the full URLA and processing through TOTAL Scorecard required for a streamline refinance?The full Uniform Residential Loan Application (URLA) (Fannie Mae Form 1003/Freddie Mac Form 65) is required for Credit Qualifying Streamline Refinance transactions.  Mortgagees may use an abbreviated URLA, on non-credit qualifying Streamline.
• Are there subordinate financing restrictions for FHA streamline refinance transactions?On a Streamline Refinance transaction any existing subordinate financing, in place at the time of case number assignment, must be re-subordinated to the Streamline Refinance. New subordinate financing is permitted only where the proceeds.
• Are termite inspections required on Streamline Refinance transactions?FHA does not require an appraisal, termite inspection, or credit report on streamline refinances (except credit qualifying streamline refinances).  However, the associated fees may be paid by the borrower out-of-pocket (i.e., not financed.
• Who administers the Home Affordable Refinance Program (HARP)?The Home Affordable Refinance Program (HARP) is administered by the Department of the Treasury’s Office of Homeownership Preservation. Borrowers who are current on their mortgage and have been unable to obtain a traditional refinance because.
• Can a borrower pay off the entire PACE obligation using an FHA refinance program?mortgage may use a Cash-Out refinance to pay off the existing balance on any Property Assessed Clean Energy (PACE) obligation.    For additional information about PACE and whether a locality has a PACE program, contact your local.
• When can borrowers be deleted from the loan when doing a Streamline Refinance?When doing a Streamline Refinance Credit Qualifying at least one Borrower from the existing mortgage must remain as a Borrower on the new mortgage.   A Borrower is eligible for a Streamline Refinance without credit qualification if all.
• How is the ability to repay standard rebutted for streamline refinances?Given the unique nature of streamlined refinances, HUD’s rule modifies the meaning of the Consumer Financial Protection Bureau’s (CFPB) rebuttable presumption standard to clarify that a presumption is rebutted if the lender does not meet.
• What are the ADP codes for the FHA Short Refinance program?/html/f17adp_sel.cfm to find Automated Data Processing (ADP) Codes in the FHA Connection.  The Mortgagee must also enter the mortgage as “Conventional” when ordering the new case number for an FHA Short Refinance.
• Can I refinance a loan obtained through the Good Neighbor Next Door (GNND) program?The owner of a property bought through the Good Neighbor Next Door (GNND) sales program, or the predecessor Officer/Teacher Next Door program, and still under the occupancy period requirement, may refinance the first mortgage but must request.
• What is the Home Affordable Refinance Program (HARP)?In early 2009, the Federal Housing Finance Agency (FHFA) and the Department of the Treasury introduced the Home Affordable Refinance Programs (HARP) as part of the Making Home Affordable (MHA)program. HARP enables borrowers who owe more than.
• What is the FHA Short Refinance (Borrowers in Negative Equity Positions) program?For case numbers assigned on or before December 31, 2016, the Short Refinance program allows the Lender to refinance a non FHA-insured mortgage in which the Borrower is in a negative equity position.    The existing first lien holder.
• Can I refinance to an FHA mortgage if I owe more than my home is worth?For case numbers assigned on or before December 31, 2016, the Short Refi program allows the Mortgagee to refinance a non FHA-insured Mortgage in which the Borrower is in a negative equity position. General Eligibility Criteria.
• Will FHA allow a Streamline Refinance of an existing FHA loan by an investor?Streamline Refinances may be used for Principal Residences, HUD-approved Secondary Residences, or non-owner occupied properties.  Non-owner occupied properties and HUD-approved Secondary Residences are only eligible for streamline refinancing.
• Can the interest rate on a new Short Refinance loan exceed the interest rate on the loan being paid off?The Short Refinance program allows the mortgagee to refinance a non FHA-insured mortgage in which the Borrower is in a negative equity position and the existing first lien holder must write off at least 10 percent of the unpaid principal balance.
• Can I refinance the mortgage on a property with an FHA loan if I inherited the property?A property the borrower has inherited can be refinanced with an FHA mortgage. Under most programs, the maximum mortgage is the lesser of the Nationwide Mortgage Limit for the area, or a percentage of the Adjusted Value.
• What if the loan becomes a streamline refinance after I have submitted an appraisal in EAD?If an appraisal has been uploaded into the Electronic Appraisal Delivery (EAD) portal and the loan the becomes a streamline refinance, there will be no FHA Connection (FHAC) issue if the Loan Type is updated to Streamline Refinance without.
• August 2016 – HUD Handbook 4000.1 Frequently Asked Questions Updateborrower funds from an escrow account to an FHA-insured refinance transaction? Handbook 4000.1 II.A.8.d.vi(A)(2)(b) states: “Cash to the Borrower resulting from the refund of Borrowers unused escrow balance from the previous