Starting June 11, some people with an FHA mortgage will be able to do a hassle-free refinance that could save them money every month.
Uncle Sam continues to try to find ways to help out homeowners in America and this is the latest trick up his sleeve.
If you have an FHA-backed mortgage that was approved by FHA prior to June 1, 2009, AND you have not missed a payment in the past 12 months, you are in. It is that simple.
This program is called the "streamline" program because of the ease with which you can qualify and get your refinance done.
Unlike most refinances, this program does not require you to get an appraisal. That is a big deal right there because the current value of your home compared to where you bought it is irrelevant. They will simply use the value of the home at the time you bought.
You also do not need to re-qualify based on credit, have your employment verified or have your current income verified. This is pretty rare stuff.
They are assuming that if you have made your last 12 payments on time, money must not be a huge issue for you and that is good enough for them.
This refinance can be done as a "no cost" refi, which means that fees can be built in, making it possible to refi with nothing out of pocket. Plus, your fees are lower anyway because you are not having to pay for an appraisal, credit check, etc.
If you have been wanting to get in on today's crazy low interest rates and you have an FHA mortgage, this is a great program for you.
If you are interested or want to know more or who to contact, please email me or write in the comment section below.
REMAX Real Estate Center