Only a little over a week remains for Massachusetts FHA mortgage holders to take advantage of one of the most popular and easiest refinance programs available…the FHA Streamline Refinance.
Effective with FHA case numbers assigned on or after November 18th, those seeking a MA FHA Streamline Refinance will face much more stringent rules which effectively eliminate the program as we know it.
Current FHA Streamline Refinance guidelines allow existing Massachusetts FHA mortgage holders to refinance their loan without the need for a new appraisal and without income or asset documentation provided that all mortgage payments have been made on time for the last year (or past 6 months if a newly purchased home). While these guidelines are extremely liberal by today’s stringent underwriting standards, FHA has permitted Streamline Refinances since the early 1980’s under the rationale that updated documentation is not needed for responsible homeowners that pay their mortgage on time.
With recent mounting evidence of losses though, the go-go years for FHA Streamline Refinances are coming to an end. Under new FHA Streamline Refinance guidelines outlined in Mortgagee Letter 09-32, income and asset verification become mandatory such that borrowers must meet FHA ratio requirements and prove they have sufficient funds to close.
With Massachusetts mortgage rates at their lowest point since May and only about a week remaining, now is the time to act if you can take advantage of a FHA Streamline Refinance.
If your current FHA mortgage rate is over 5.500%, there is a good chance that you take advantage of a FHA Streamline Refinance and save money. Contact me today for your FREE, no obligation loan comparison.
Geof McLaughlin
The Massachusetts Mortgage Broker
Certified Mortgage Specialist, CRMS, CMPS
Mortgage Master, Inc.
508-656-0055
gmclaughlin@mortgagemasterinc.com
