FHA-Refi

FHA financing provide mortgage insurance for a person to purchase or refinance a principal residence.  To become eligible to the FHA loan, the borrower must have a valid social security number and have a lawful residency in the US and be of legal age to sign on a mortgage in your state.    An FHA mortgage may be used to refinance a new or existing 1-4 family home. 
FHA has permitted streamline refinances on insured mortgages and the basic requirements are:
o The mortgage to be refinanced must already be FHA insured.
o The mortgage to be financed should be current and not delinquent.
o The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
o No cash may be taken out on mortgages refinanced using the streamline refinance process.
Streamline refinancing may offered by lenders in several ways.  Some lenders offer “no cost” refinances, with no out of the pocket expenses to the borrower, by charging a higher rate of interest on the new loan.  From this premium, the lender pays any closing costs that are incurred on the transaction.
Lenders may also offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, provided that the new loan amount cannot exceed the original loan amount.
Borrowers can choose between different options that they can afford.  Either way, the bottom line of the refi is for you to make paying your mortgage easier.

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