In case you have an FHA
insured mortgage on the home, then you will get the opportunity to refinance
with an FHA streamline refinance program. While the hype that surrounds this
type of refinance program, makes it sound great, but the truth is that often
the mortgage lenders put “overlays” on the FHA guidelines. In other terms,
while FHA describes that one can actually refinance the underwater home even in
case the person has bad credit score and is unemployed, but the majority of the
lenders need that person to meet a specific level of standards.
According to the lenders, in
case one has a FHA loan and if the person can qualify for FHA
streamline refinancing, this will be a wonderful deal. One just needs
to compare the options as well as other kinds of mortgage refinance.
Unlike other types of
mortgage refinances, the FHA streamline refinance offers the loan borrowers a
new FHA insured home loan with an existing FHA mortgage without any
documentation of assets or income or an appraisal. Additionally, on the basis
of when the present loan was taken out, lower mortgage insurance fees can be
available to the loan borrower.
So, if you have the question
in mind can
you refinance a mortgage with bad credit, then the answer is yes. Here
are the criteria to qualify for this refinance:
- The loan borrower needs to live in that house, which he/she is refinancing
- One can’t make more than two or thirty day late payments on the FHA mortgage in the past 12 months
- FHA doesn’t have a least credit score needed for streamlined refinance, but the lender might. Commonly, it is best in case the loan borrower has a credit score of 620 or more.
- The loan borrower must not complete FHA streamline refinance in the last 6 months
Some of the major advantages
of considering FHA streamline refinance are:
- This type of refinance is really easy to qualify
- There is no appraisal required to get this type of refinance
To get more information on FHA
streamline refinance rates today, you can consider visiting MORTGAGREFINANC101.COM
