IN the middle of February, 2011, FHA published yet another mortgage letter. This time they're announcing that the FHA Streamline Refinance Program is going back to being streamlined. Again, no more employment verification, no more credit verification, no more income verification.
To refinance with the FHA Streamline Refinance Program you still need to have been on time with the last 12 mortgage payments, there still has to be a 'net benefit' and you still can do it without a new appraisal.
By 'net benefit' FHA means you either are refinancing from an variable rate mortgage into a fixed mortgage or else your monthly payments are going to be 5% lower, at least.
So, you could have a credit score lower than my IQ (and that's low), have no job, no savings, and you qualify.
In case you're wondering, FHA benefits. Reducing people's mortgage payments increases the chances that they won't default.
I say the FHA Streamline Refinance Program is a smart thing to do from their point of view. They found a win-win program.
To refinance with the FHA Streamline Refinance Program you still need to have been on time with the last 12 mortgage payments, there still has to be a 'net benefit' and you still can do it without a new appraisal.
By 'net benefit' FHA means you either are refinancing from an variable rate mortgage into a fixed mortgage or else your monthly payments are going to be 5% lower, at least.
So, you could have a credit score lower than my IQ (and that's low), have no job, no savings, and you qualify.
In case you're wondering, FHA benefits. Reducing people's mortgage payments increases the chances that they won't default.
I say the FHA Streamline Refinance Program is a smart thing to do from their point of view. They found a win-win program.
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