If you have been thinking about doing an FHA Streamline Refinance in New Jersey, you should be aware of the changes that are coming very soon.
FHA has released these changes which will go into effect as of November 17th, 2009:
1) Borrower must have made at least 6 payments on the loan being refinanced ( 6 months seasoning )
2) Loans with a 6 to 12 month seasoning must have NO 30 day late payments in the preceeding 12 months and also made all payments within the month due for the preceeding 3 months
3) If existing loan has been in place over 12 months, there is a maximum of ONE 30 day late payment in the last 12 months
4) Net Tangible Benefit:Streamline Refinance must reduce PITI ( Principal, Interest,Taxes,and Insurance by 5% or be refincing from an FHA ARM to a Fixed where the interest rate cannot go up more than 2%…..OR can be from a Fixed to an ARM but the ARM must be at least 2% less than the current rate…..OR reducing the term of the mortgage
5) Investment properties and second homes are not eligible
6) Employment, Income , and necessary Assets must all be verified
If you have been thinking about an FHA Streamline Refinance, call me NOW @ 732-536-3330 ext 310 so we can expedite the process and keep it simple before these changes take effect.
