You may have heard about the FHA streamline program. With interest rates at all time lows, people are wondering if refinancing using this program makes sense. FHA rates in Utah are going making it so that now is the best time for you to get a loan. Let me share with you how the program works so that you can decide what is best for your family.
First of all, in order to do a streamline refinance, you must have an existing FHA loan on your home. There are other types of refinancing programs out there, like the conventional Refi Plus, but the benefits are not the same. One of the biggest benefits of the streamline program is that an appraisal is not required on the property. With so many areas of the country that have been negatively impacted by lowering home values, it is a huge benefit to be able to take advantage of low interest rates without having to worry about the property value.
There is very little verification that is done with the streamline program. That is another reason that this loan program is so popular right now. With the current recession, many people have had a reduction in income. The nice thing about this program is that income is not verified. All you have to do is prove that you are employed or have some type of income stream.
For the FHA recognized lenders, mortgaged homes have to be appraised of up to 90% fair market value. Fees and other penalties must be waived by the FHA-certified lenders noting the financial difficulty of the borrower. New FHA loan borrowers should agree to zero equity loans in the period of five years except for home improvements and maintenance.
The only downside to this loan program is that FHA has increased their mortgage insurance premium over what it has been. The mortgage insurance that they charge up front on the loan used to be 1.75% of the loan amount. It is now 2.25% of the initial loan balance. This means that your loan balance will increase by this amount when you refinance and use this program. With all of these benefits, you should look into this program to see how it can save you money. Interest rates are at an all time low right now. Lock in a new FHA rates in UT now and begin saving money each month.
First of all, in order to do a streamline refinance, you must have an existing FHA loan on your home. There are other types of refinancing programs out there, like the conventional Refi Plus, but the benefits are not the same. One of the biggest benefits of the streamline program is that an appraisal is not required on the property. With so many areas of the country that have been negatively impacted by lowering home values, it is a huge benefit to be able to take advantage of low interest rates without having to worry about the property value.
There is very little verification that is done with the streamline program. That is another reason that this loan program is so popular right now. With the current recession, many people have had a reduction in income. The nice thing about this program is that income is not verified. All you have to do is prove that you are employed or have some type of income stream.
For the FHA recognized lenders, mortgaged homes have to be appraised of up to 90% fair market value. Fees and other penalties must be waived by the FHA-certified lenders noting the financial difficulty of the borrower. New FHA loan borrowers should agree to zero equity loans in the period of five years except for home improvements and maintenance.
The only downside to this loan program is that FHA has increased their mortgage insurance premium over what it has been. The mortgage insurance that they charge up front on the loan used to be 1.75% of the loan amount. It is now 2.25% of the initial loan balance. This means that your loan balance will increase by this amount when you refinance and use this program. With all of these benefits, you should look into this program to see how it can save you money. Interest rates are at an all time low right now. Lock in a new FHA rates in UT now and begin saving money each month.
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