Do you have an FHA Insured Mortgage Loan in Eugene, Springfield or Cottage Grove Oregon at a higher than current rate? Have you thought about taking advantage of the FHA Streamline Refinance Program? Then 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:
- Borrower must have made at least 6 payments on the loan being refinanced (6 months seasoning).
- Loans with a 6 to 12 month seasoning must have NO 30 day late payments in the preceding 12 months and also made all payments within the month due for the preceding 3 months.
- 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.
- Net Tangible Benefit: Streamline: Refinance must reduce PITI ( Principal, Interest,Taxes,and Insurance) by 5% or be refinancing 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.
- Investment properties and second homes are not eligible.
- Lender must include a signed and dated letter on their letterhead, that the borrower is employed and has current income.
- The maximum CLTV is 125% of the new value or the original value if the loan is processed WITHOUT an appraisal. This could be the biggest change for anyone trying to reduce their payments on an FHA loan in a declining market.
If you have been thinking about an FHA Streamline Refinance, call me NOW @ 541-342-7576/541-221-3455 Cell or e-mail me so we can expedite the process and keep it simple before these changes take effect.
