If you are considering an FHA refi to avoid foreclosure or high rates, there are several tips that can help you get started. This financial service offers a real plan to help buyers avoid mortgage pitfalls and high interest rates. As the economy continues to recover, homeowners need a source for affordable refinancing. A Streamline Fha refinance can provide options for borrowers with bad credit.
A refinancing plan through the FHA is a great option for borrowers who have high existing mortgage payments and would otherwise be unable to qualify for a competitive fixed interest rate. Yes, an FHA Streamline refi will probably work well for upside-down/underwater homes. However, Streamline Fha refinance loans for these properties are specifically excluded from the refinancing program. Other significant benefits of the Streamline Fha refinance loan include:
Many homeowners are facing mounting debt, foreclosures, and high interest rates. Unfortunately, many of these homeowners may be able to obtain a lower interest rate by refinancing their current home loan through the FHA. Many Streamline FHA loans also allow for lower down payment requirements. Although they may not offer a large cash outlay savings on the front end, the streamline Fha refinance is designed to save money over the long term.
Although the Streamline FHA loan is not available to all buyers, there are several guidelines that must be met in order to qualify. For example, each of these borrowers will have to meet an income and/or asset requirement. These borrowers will also have to have a sufficient down payment in order to qualify. These borrowers will also have to be at least 18 years of age and be a homeowner.
On the plus side, many FHA lenders have agreements with banks to finance a Streamline FHA left. These agreements often entail reduced interest rates due to the reduced cash outlay that the lenders incur by securing the loan with the FHA. On the minus side, borrowers are usually required to submit a bankruptcy or foreclosure filing before being eligible for a Streamline FHA loan. This paperwork can be cumbersome and time consuming. Many borrowers find it comforting to know that their mortgage rates will most likely stay fairly stable if they choose to take advantage of the program.
When considering your options, carefully weigh the positives and negatives associated with Streamline Fha refinance loans. For most borrowers, the positive aspects outweigh the negative. Borrowers can receive their credit score back up to par by having an appraisal done. They can then work on rebuilding their credit score by paying off debt as quickly as possible. Streamline FHA refi will definitely help a distressed borrower with financial problems make a fresh start.
