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FHA Streamline Refinancing
FHA has permitted streamline refinances on
insured mortgages since the early 1980's. The streamline refers only 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 in the transaction. The basic requirements of a streamline refinance are:
·
The mortgage to be refinanced must already be FHA insured
·
The mortgage to be refinanced should be current (not delinquent).
·
The refinance is to result in a lowering of the borrower's
monthly principal and interest payments.
·
No cash may be taken out on mortgages refinanced using the
streamline refinance process.
Olympia Mortgage may offer
streamline refinances in several ways. We
offer "no cost" refinances (actually, no
out-of-pocket expenses to the borrower) by
charging a higher rate of interest on the
new loan than if the borrower financed or
paid the closing costs in cash. From this
premium, we pay any closing costs that are
incurred on the transaction.
Olympia Mortgage also can offer
streamline refinances and include the
closing costs into the new mortgage amount.
This can only be done if there is sufficient
equity in the property, as determined by an
appraisal. Streamline refinances can also be
done without appraisals, but the new loan
amount cannot exceed what is currently owed,
i.e., closing costs may not be added to the
new mortgage with those costs either be paid
in cash or through the premium rate as
described above. Investment properties
(properties in which the borrower does not
reside in as his or her principal residence)
may only be refinanced without an appraisal
and, thus, closing costs may not be included
in the new mortgage amount.
Some of the benefits of this loan program include:
FHA Refinance
* No Credit Requirements
* Mortgage Only Credit Report (Maximum 1
X 30 Late)
* No Income Verification
* No Asset Verification
* Rate &
Term Refinance to 97.75% LTV
* 15, 25 & 30 Year Terms Available
Required Documentation:
- Signed Loan Package
- Mortgage Only Credit Report
- Appraisal
- Closing Statement (from Purchase or Last Refinance)
- Copy of Mortgage & Note (From Purchase or Last Refinance)
- Last Mortgage Statement
- Copy of original Survey
- Prior Title Insurance Policy (not
required but helpful)
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