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