FHA Streamline Refinance in Orange County, CA

FHA is a great loan program for purchasing a home for many reasons. But what is sometimes overlooked is the fact that FHA allows refinancing of current FHA loans with no qualifying or appraisal. The FHA Streamline Refi makes refinancing very easy. Orange County FHA loan borrowers are finding out about this program right now as FHA Streamline Refi loan applications are on the rise for the first time in years.

No Appraisal Required!

Currently, appraised values are keeping many homeowners from refinancing into a low fixed rate. While Fannie Mae and Freddie Mac underwriting guidelines have tightened and equity has disappeared, this has lead to people not being able to do anything. But for those that are lucky enough to have an FHA loan, equity is not required, because there is not even an appraisal required. FHA does have a Streamline Refinance program that requires an appraisal, but the program that is more commonly used is the No Appraisal $0 cost program.

Do you meet the following requirements:

You currently have an FHA loan.
You would like to lower your interest rate and payment.
You are current on your mortgage.

FHA looks out for it borrowers. On the $0 cost program there are No Closing Costs financed into the new loan. The Mortgage Insurance Premium, which was financed into the initial loan is credited (a prorated portion) towards a newly financed Mortgage Insurance Premium. At closing the borrower does need to come in with what essentially is equal to a final mortgage payment to the current lender. The amount actually needed is 30 days interest, along with setting up a new impound account for taxes and insurance. However, any funds in the current impound account are refunded back to the borrower after the close of escrow.

The loan process is very quick. The only items needed are the following.

Copy of Note for FHA Current Mortgage.
Copy of recent mortgage statement.
Copy of Declarations page for Homeowners Insurance Policy. If condo, then contact information for HOA.
Copy of Drivers License and Social Security card.

A $310,000 loan with a .5% rate drop would save approximately $100 per month. That turns out to be easy savings, especially at a time when everyone is watching the budget. Also, there is no limit to how many times you can do a Streamline Refi. If mortgage rates drop in 6 months, an FHA borrower would be able to again take advantage of the lower rate.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com