FHA Streamline Refinance When You Do Not Occupy Property

FHA allows you to Streamline Refinance when you do not occupy property. This was actually news to me, because we always tell folks that FHA is ONLY for use as a Primary Residence!

So we have a borrower who owned a home in Ohio (financed via FHA), moved to NC – but could not sell the home in Ohio. They purchased a home in NC while renting the other one out.

The rate on their home in Ohio is 6.25% – which is a good rate… except that FHA rates have DROPPED so much right now, they wanted to see if they could get a little better position!

Turns out we can save them $275 a month, AND keep it a FHA Loan! Yeah!

Here’s the deal – must be a Streamline Refinance, meaning:

no appraisal
no increase in the base loan amount
must pay the closing costs out of pocket
the lender CAN par price the loan to pay some of the costs
can NOT remove a co-signor

This is seriously good news if you have what is now Investment Property that has a FHA loan on it! If you want to see if we can help you lower your payments with a refinance, call Steve and Eleanor Thorne, Mortgage Banker in Cary 919-649-5058