Effective June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP what we refer to as the FHA PMI premium) for certain FHA Borrowers with a DROP to just .01 percent.
IF YOU WANT TO REFINANCE A FHA LOAN – THIS IS HUGE! We’ve had trouble in recent months making a FHA Streamline make sense for some homeowners because of the RISING cost of FHA PMI. With this recent slash to only 0.1% – Many more people will save THOUSANDS of dollars using the 2012 FHA Streamline Refinance Program!
If you want to know if you might qualify for this new program remember these few rules:
- You must be current on your existing FHA Mortgage (USDA, VA and Conventional loans do not qualify)
- Your current FHA mortgage must have been endorsed prior to May 31, 2009. (Find Out What That Means)
- Additionally, FHA says that to qualify:
- Employment verification is not required with an FHA Streamline Refinance
- Income verification is not required with an FHA Streamline Refinance
- Credit score verification is not required with an FHA Streamline Refinance* (See notes below regarding AUS findings)
- A new appraisal is not required with an FHA Streamline Refinance
FHA changed it’s guidelines so that VERY little is required to qualify, however, in North Carolina, we have our own State mandated standards, so again – many NC Banks can not offer this program the way FHA intended for it to work – WE DO!
MONTHLY Insurance for the FHA 2012 Streamline Refinance Program:
For the “2012″ Streamline FHA Program, FHA will also charge an annual premium of .55 percent (which you divide by 12). This is NOT significant for those with mortgages taken out prior to May of 2009, as your current monthly mortgage insurance for FHA is .55 percent.
*Regarding No Credit Score. We use DU Automated Underwriting Systems. You will need an AUS approval. Otherwise, we need at least a 600 credit score with a Total Scorecard Approval (there are some additional guidelines that also apply).
Update – a change could come this summer for those with a FHA loan endorsed After May 31, 2009
If you are interested in getting more information about refinancing your FHA mortgage, let us provide you with a FHA Streamline Refinance options! We will give you the best mortgage rate today and the lowest cost! Call Steve and Eleanor Thorne 919 649 5058. We work for a small Community Bank out of Virginia – and we would love to be YOUR lender today!