October 5th, 2009 10:21 PM by Preston Ware
All Existing FHA Customers should be looking at a Streamline FHA Refinance without needing an Appraisal
The Streamline FHA Refinance :
Providing service in the mortgage business means ensuring a smooth and easy process and providing “absolute red carpet treatment” for the customer. Half of the mortgage person’s job is finding the customer through marketing and the other half is guiding them through the loan process hopefully making for a happy experience. We are always looking for ways to make the process of getting a mortgage easier because ultimately that will reflect positively on us and hopefully lead to more business. Today, I thought it would be a good idea to talk about a loan program that is truly a smooth and easy program and is still available in today’s mortgage world. This program is the Streamline FHA refinance without an appraisal.
The streamline FHA refinance without an appraisal is when we refinance an existing FHA customer and place them back into a new FHA loan. Even if the borrower is only taking their interest rate down 1%, a smart borrower should consider this loan because there are a few less closing costs associated with this loan. The streamline refinance is relatively easy because there is less documentation than your typical FHA loan. We still have a lot of paperwork but there is no appraisal, no proof of income, no proof of assets and no credit report. The application still has to reflect correct names and dates of employment as well as the details of the transaction.
There are a few key ingredients necessary for a streamline FHA refinance. The new mortgage has to less of a loan amount than the old mortgage. The mortgage history has to be paid on time and there is no cash out to the borrowers at closing. This loan allows for the loan officer to pay closing costs if the cash to close is tight. He or she can structure the transaction a little differently to make it work for the borrower’s bottom line. For example, if the prevailing FHA interest rate is 5%, the loan officer can provide 5.25% and pay $1500 in closing costs to help the borrower avoid writing a check at closing. Just like the way we can look at a no closing cost loan in the conventional world, the loan officer can pay closing costs to make the break-even point less. http://www.huliq.com/1/86552/many-buyers-dont-get-no-closing-cost-mortgage
The FHA streamline refinance helps customers who may be upside down on their home value still improve their situation because there is no appraisal requirement. So customers who have been sitting on the fence with rates in the sixes should look at this loan opportunity. As long as the new loan amount is less than the old loan amount, the payment drops by at least $50, and the FHA customer has a good mortgage history, we can do this loan.
Written by Preston WareFirst South MortgageTel: 704-542-8057* http://www.prestonware.comEmail is firstname.lastname@example.org.