FHA wants more homeowner’s to be able to refinance to a lower FHA Mortgage Payment. Because of this, they are putting in a new “tier” for FHA PMI for refinancing your FHA loan!
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!
Why the hell are we being made to wait? People that want to wait for this are subject to market exposure already seen today as interest rates rise.
Patrick – rates are going to rise and fall, based upon the economy… however, mortgage interest rates are expected to remain within the current range for many many months. With the USDA Home Loan program for refinancing (announced last month), the problem has been that NONE of the large banks want to follow through with the program. Hopefully, this program will ACTUALLY work – and we will see people who can benefit from the refinance.
I have an FHA loan currently with 4.75% interest and have been wanting to refinace at the new rates of 3.75% and 3.875% to lower my payment. Right now I pay $64/month for my MIP. My loan was done in April of 2009. Should I wait until June for this new program? And how much do you thing it could save me?
Thanks
When can they get the lower mi. After June 9th or before? When do we order FHA case#
FHA Case Numbers ordered after June 11, 2012 will be considered.
My loan closed on June 9, 2009. Will I qualify? What exactly does “endorsed mean”? I had a committment before the May 31, 2009 date.
If your loan closed on June 9, 2009 you will not qualify. An Endorsed Loan would be one that was actually insured by FHA prior to the deadline they’ve mandated of May 31, 2009. The endorsement happens (usually several weeks) AFTER you close. In NC, we close in the Attorney’s office, then the paperwork goes to the Lender, they have to get the recorded documents, and the Title Insurance Policy – and send that with all of the other Paperwork to FHA for them to “endorse” or issue their Insurance policy on the loan. Because of this, some folks (most folks) who closed in May of 2009 won’t be eligible for the reduced mortgage insurance rates either.
The government made up the endorsement cut off date.
Wow, so the loan I closed on April 20, 2009 I just found out was not endorsed until June 44th, 2009. Am I really not eligible for this program and am I really going to lose out on the opportunity to save thousands of dollars?!?
Mike – Unfortunately, that is the way the FHA Guideline is written. I’m sorry – we will be glad to talk to you about a “regular” Streamline, but the savings, because of the Insurance Difference will not be as good. 🙁
Hi,
Anyone knows if gov is considering to change the May 31st cutoff date to allow more people.
Thanks
I live in Texas. Can i do a streamline refinancie if I’ve filed bankruptcy in the last 4 years?
We spoke to Senator Kay Hagan’s office last week. It does not appear that there will be a change to the May 31st date. If you are in NC, and you would like to see if you have other options, please call us. 919 649 5058
I have a FHA loan that closed well before May 2009. Mine is an adjustable rate. I want to say it might be currently 2.5 to 3% right now. But I still would like to get into a fixed rate so that I would not have to worry about adjustments. With this pending program coming in June, what would a monthly payment look like on 150K streamline refi (Assuming rates in june will be what they are today)?
Hey! Going from a FHA Adjustable Rate mortgage to a Fixed rate mortgage, does make sense – even though your payments will go up slightly. Could you please call us at 919 649 5058 and we will go through the payment options for you? THANKS!
I did a FHA streamline refinance back in February 2012, but my original FHA loan wouldve qualified for this. Im
guessing they will not “grandfather” people in who’ve recently refinanced here within a couple months with the old MIP. Bad timing on my part I guess.
I have FHA loan, Which was refinanced 4/28/2009. Initial amount is 120,886.00. It was 6%.
now . I want to refinance. I have excellent credit score which is 775. This is single family home.
I am living in Georgia. How can you help me. My email is 123sujon@gmail.com
Hi i have a question about the up front pmi does this mean that if we qualify we will get some of the original upfront pmi back
Yes – If your mortgage was endorsed prior to December 8th, 2004, you will still receive a refund of a portion of it.
Eric, unfortunately, it is bad timing. That’s why I started putting information out there so early about the upcoming change.
We can help you in Georgia. It will depend on when FHA Endorsed your Mortgage. We will contact you directly to get some additional information. Thanks!
I’m in the process of closing on an FHA loan…any hope for me on the PMI?
On this new refi, how many payments in reserve do we need in the bank? It seems like I remember a few years back we needed six months’ payments in the bank.
I was 30 days late on my loan about 20months ago. Will that disqualify me from streamline refinance?
It could – a mortgage history will need to be pulled. HOWEVER, having said that – the program is not going away in 30 days.
We don’t have all of the Investor “overlays” yet. The program was written with no reserves required. The trick comes with how much out of pocket you might need. No $$ can be added to the Principal Balance to cover closing costs.
No Worries – I answer to a multitude of names! 🙂 I have a Rolodex too! I’ve talked to several folks in other states who are starting to get quotes. It’s going to be very difficult to close a FHA loan in June – you can probably go ahead and apply, and lock in a rate now, for 60 days. FHA loans must close and dispurse on the last day of the month… probably something else I should write about and explain. If you have questions, just let me know!
Thank you Mary. This is one of the most informative series of explanations I have seen on the topic and I am very appreciative. Unfortunately, I’m not in North Carolina; but if I were, you would be in my Rolodex. Yes, I know using the term Rolodex ages me, but it is what it is… LOL
Keep up the good work and best of luck.
anthony
Oops, make the Eleanor. Sorry about the name mix-up. I’m multitasking with Mary here in my office at the same time. Yet another thing to chalk up to age…
Eleanor,
I have an FHA loan financed August 2008. The county appraises the home at $178,000, the mortgage value is $202,000. We have a credit score that is fair. What will the streamline do for us with a mortgage rate of 5.375%?
Thank you in advance!
We were going to refinance earlier but found out about the new guidlines! Awesome! We are always looking for our “dream home”. If we refinance then find our “dream home”, is there any problem selling our home? When calling around, I was asked if we were going to sell our home in the near future. Is it a problem to sell after a refinance? Thanks for all of the information! It is GREAT!
Mylinda – here’s the thing. There are some costs associated with most refinances. Not always – it depends on what your current interest rate is. If you have a 5.75% or 6.5% interest rate currently, and we can refinance you at no cost, AND lower your payment by $100… then yeah! Do that, and if you sell your house in 6 or 8 months – then you’ve saved $600 to $800. We will NOT be adding anything to your balance, so it should not be a problem! 🙂
Jennifer – you can contact us directly and we’ll be glad to do the numbers. It’s going to be to your advantage, just based upon the rate. I don’t know what your balance is, so I can’t tell you exactly what your new payment will be! In general, it looks like today it would save you about $75 a month per $100K that you owe (so if you owe $150,000 – based upon your rate, should save you at least $120+ a month). Hope that helps!
Hello
I recently called my mortage provider (Chase) to find out about a streamline. They worked the numbers and said Id go from $1,300 a month to $990 and from 5.8% to 4.1%. He said I’d have to pay $395 application fee and would probably need to bring $2,300 or $2,500 to closing. He did mention during our conversation that there were changes taking place in June but they (the government?) where allowing them to start offering the new changes to people now. He never actually said June 11 are when the changes take place, he just said June. I started to research and found several post about the June 11 changes and how they would cut the amount of fee down considerably. One site even gave the following example; Refinancing $200,000 before June 11th would incur about $3,500 in closing cost but after June 11th it would be $20.
My questions are. 1 Is this what the changes to the program on June 11th will in fact do? 2. Was the representative at Chase mis-leading me to get me to pay more out of pocket? 3. I’ve been getting so many things in the mail from companies saying they can do this for no down payment. Are these just bait and switch offers? There is so much information out there it’s a little overwhelming. I just want to be sure we make the right choices for our family.
Question:
My husband and I bought a home in July of 2008 as an FHA at 6.5% for 132,000. Currently the home principal is 126,000 and the value is below 100,000. We are hoping for anything that will allow us to refinance and drop the interest rate. Will this new streamline fha refinance be something that will work for us?
Eleanor,
Regarding an FHA loan that was financed in October 2008 with approx. 5.5 interest rate, with 178,000 remaining on the loan, There was a divorce and one individual granted the property in the divorce and that individual continues to pay the FHA loan himself. The other individual also filed a quit claim deed. The original loan company advised that he could not do the FHA streamline refinance because it would be taking one borrower off the mortgage. However, the other borrower has no interest in the home and does not pay any of the current mortgage. Is it true that the new FHA streamline program prohibits anyone taken off the mortgage??? Where can I see the actual guidelines that states this?? Please help
That is true – to be a Streamline, you have to keep the “ownership of record” as it was at the time the FHA loan was taken out. Remember – this is basically a “non-qualifying” loan. FHA is not going to want to insure a borrower and a property that, in essence, is not what they originally agreed to. They originally agreed to have 2 people on the loan… so the current resident can refinance, just not a streamline. If you “Google” 4155.1 6.C.3.d you will see the guideline.
This program is designed to help folks in your situation. If you are in NC – please give us a call! 919 649 5058
Natalie – I’m sure it seems a little overwhelming! I suspect the LO at Chase did the “offering” based upon the new numbers. You can look at whatever he sent, and look at the monthly MIP rate to tell. It should be .55%
Interest rates are trending downward – so getting another quote is probably a good idea. In calling around, I’d also ask how long they expect the processing time to take – I’ve heard of people being quoted 90 days before they can close (which is incredible to me!)!
The guideline says that in doing the FHA streamline refinance, you can’t add anything to the balance you owe. That means there are a couple of ways to get a quote. We normally quote the lowest rate we can, without an Origination Fee. In most cases, people will opt for a rate and closing cost combination that equals about what their current payment is. You have LOTS of options in refinancing your FHA loan to a new lower FHA refinance rate with lower PMI costs!
Hi Eleonor, Thank you for the Google address for the actual FHA quidelines for streamline refinancing. I was the individual with the friend who was divorced, trying to see if possible to refinance under the new streamline effective June 11, 2012. I read Section 4155.16.C.3.C and it does actually provide a way to remove a borrower and proceed with the Streamline refinancing. Am I reading it incorrectly? Could you take a look and give me your thoughts. The wording is very complicated, but seems to give hope. My friend has been current with the mortgage and the quit claim deed was filed over six months ago and divorce effective early December 2011. Also, I notice that the guidelines do not mention the changes or what the changes will be June 11, 2012. Do you know if these changes will be to any of the rules important to my friends situation?? Thank you!!
Thanks for your reply. So I’ll go ahead and shop around a little and see if we can get a better rate. Maybe I’ll try the Lending Tree.
When you said “I’ve heard of people being quoted 90 days before they can close (which is incredible to me!)!” Did you mean incredible in a good way or incredible in a bad way?
Thanks so much for your input. It’s really helping to put me at ease.
90 Days is a really long time! We can give you a quote for NC, but in general, you should be able to close a FHA Streamline in a few WEEKS. The longer the lock-in period, the worse the rate and terms.
I did read the guidelines, and I talked to a Wells Fargo Underwriter over the weekend, so I know their take on it. The Streamline “guidelines” that are changing in June will only change in regards to what the Insurance Rate is for those homeowners who have a mortgage that was endorsed by FHA prior to June 1, 2009. That’s the only change to the guideline. So the 4155.16.C.3.C Section is “in tact” as far as the Streamline “Underwriting” Guidelines go.
I still don’t believe this situation qualifies for a Streamline, but the best thing for them to do is apply for a Refinance. Have all of the documentation available at the time of Application. That way, the Loan Officer will have all of the details, and can give them all of the options available to them.
We are doing a refinance for someone who has a 5.5% rate – and it is saving them $185 dollars a month, and will cost them less than $500 out of pocket (plus they skip a mortgage payment). So I totally understand the desire to refinance!
Thanks Eleanor. The Chase agent did say we’d close sometime in August which felt weird considering no credit check, income verification or appraisal is needed to do a FHA Streamline. I filled out a request on Lending Tree, which I feel like now was a mistake because my phone started ringing two minutes after I hit submit. One fellow did sound very professional and knowledgeable and said he could have us closed in about two weeks with no application fee.
Are you able to give quotes for states other than you own? Im in Georgia.
Yep – we’ll give you a quote. You can call us at 919 649 5058
Hi Eleanor, thank you for your response re probable denial of streamline refinance due to need to take one borrower off (divorce situation). You recommended that the individual still try a regular refinance, but in scrolling down the HUD guidelines for refinancing, I read that Condos taken off the list of FHA approved, can only be refinanced under “Streamline” program. ughhhh. Could you please let me know if this is true? As I understand it, the Condo neighborhood was FHA approved when purchased, but the condo association did not renew because of the numerous and seemingly crazy rules. So, at present, the Condo neighborhood is not FHA approved. So, is a regular FHA refinance even possible ??.
Also, if just doing a regular FHA refinance, are you still subject to the old rules, namely, that a “new” FHA application brings with it the new or in effect at the time, higher upfront MIP and higher monthly MIPs. Also, I assume that a straight refinance also requires a satisfactory income/debt ratio?”?? This is such a sad situation if true!!
This individual is now paying and trying to stay afloat with an “underwater” property with higher mortagage than the property is worth and paying everything else involved and doing it. Yet, all the rules say this person is not eligible for a streamline FHA refinance or regular FHA refinance. Isn’t this new refinance program set up by the President intended to help people like this, people who are responsible homeowners who just wouldlike to take advantage of lower interest rates. Your response to the questions above would be greatly appreciated and helpful. Thanks.
Thank you, Natalie, for your question and Eleanor, for your answer regarding you quoting for other states! I too have many quotations and have checked the BBB for each one but still am not sure if it would be best for me to stay with the same mortgage lender, Bank of America, which is funny that they are not calling me back now. The loan officer sent one quotation and I sent back some questions about the new FHA Streamline Guidelines but no answer. HHHHHMMMM! I do not think that is good customer service. I will give you a call today! Thanks again everyone!
Eleanor,
My husband and I have been trying to work with you on this. We contacted your office early last week and have yet to hear back. When should we expect to hear from you?
Thanks,
Jo
Eleanor, I live in the St. Louis, MO area on the Illinois side. I receive a lot of offers in the mail for the streamline refinance. I have always been a bit skeptical about taking the step to refinance because I do not know which are reputable. Do you have any information about how to find a lender in my area? Thanks!
Our loan was indorsed in 2008. our interest rate is 6.875 we still owe 160,000 on our home.
how much would refinancing save us a month ? we were also quoted 4,000.00 closing cost ?
it sounds like alot of banks do not want to touch a FHA streamline
You should be able to get Chase to close the case number now. It doesn’t look like Wells actually tried to do the streamline, so I would call them back next week! 🙂
Cheryl -you need to refinance! WOW! A payment that we would quote today, with no closing costs would be around $765 without insurance or taxes. So HUGE savings! The program doesn’t actually start till next week, but we are starting them now.
Brian, I would contact Larry Bettag. I’ve known him for several years, and he is very reputable. http://www.cherrycreekmortgage.com/lbettag/bio
I’m so sorry – my number is 919 649 5057. I will email you as well.
-Eleanor.
This is why I suggested they go sit down with a Loan Officer. There are Soooo many twists! FHA does not actually make the loans, payments are made to the Bank. Each “Investor” (Bank) then applies for mortgage insurance from FHA.
Each Bank has it’s own set of “overlays.” Meaning, some Banks are doing this program with just a “mortgage” check – some are requiring a full credit report. Some Banks might have their own Title Insurance Company, and find that they can add or take people off the mortgage easier.
This is truly a case where the homeowner needs to make an appointment with a Loan Officer and take all of the documentation with them, and get advice. There are so many programs available (not just the FHA Streamline) that they need to just go in, lay all of their cards out, and see what program fits their needs!
Hello Eleanor,
I am in California and my wife and I started the process about a month ago. We were rejected due to some medical bills from our son. We applied with Chase and are being forward to someoneo else because our rep stated no-other bank considers medical collections, except for them.
I called Wells Fargo and they stated a case is most likely active and we would have to wait until it drops to apply. The Wells Fargo rep also shared that after June 11th the PMI rates would drop and raised an eyebrow as to why the Chase rep wouldn’t tell us this since it has been known since March (I looked it up on the HUD.gov site).
My question today is. How long do we have to wait to re-apply if we have an active FHA case following us?
Wow, you are fast.
I also just received an email right after reading this from my Chase rep stating that all Wells Fargo needs to do is contact Chase and they’ll turn the case over to them. So I guess i’ll reach out next week.
Thanks for taking the time.
Wonderfull just my luck they finally come out with a program that would really help me but can I take advantage of it NO! Why? Because I refinanced July of 2009 Im so sick of missing out on programs like this over stupid little dates like this!!!!!!
Thanks for the referral Eleanor. You’re the best of the best. Wish you were out here with us!!!!
Wyatt – Don’t get too upset! Most of the folks we are talking to are seeing a reduction in their payment, even if they don’t meet the June 1, 2009 date! Call a loan officer near you, and find out what options are available. I’ll bet you will be pleasantly surprised!
We’re doing that now. If you have questions, you can call me at 919 649 5057
Please e-mail me regarding obtaining a quotation for FHA Streamline Refinance. Thanks!
I have an FHA loan right now with a 4.75% rate. My MIP is $65 right now. My balance is $153,400 and my appraised value is $175,000. I closed in april of 2009. What kind of payment would I be looking at if I refinanced? My credit score is 777 on experian.
Arlene – yes, this sounds right. Just look over the cost estimate carefully. I would ask the loan officer what rate you would have if you paid the equivalent of one month’s house payment. You skip a payment with a refinance.
Adrian, you need to either talk to a loan officer, or call the FHA resource line, and see when your endorsement date is. In the event you were endorsed prior to the end of May, 2009 – then you would qualify for the new streamline refinance, and your MIP factor will not change, and your payments will just go down.
Hi Eleanor
I live in California and I called my lender, Bank of America, and they informed me that I do qualify for the new FHA Streamline Refinance, being that the loan was endorsed by May of 2009 . My new rate would be 3,875% with a 4.39% APR (current rate is 5% with a 6% APR). He stated that for 30 years my new mortage, would be a savings of $219 a month with the new rates. He also stated for me to call back on Monday, June 11th and they can get the application going and etc. He did ask if our credit scores were good, which they are. I then asked how long would the process take and he said up to 60 days but not to worry that they will lock in my rate. My next question to him was “how much would this cost me out of my pocket? He informed me that closing costs WERE covered, however, if i wanted a lower rate I could pay the closing costs. But he assured me that, that was not the way to go. Does this sound right? I too have been getting so much junk mail that states no closing costs and etc. but its hard beliving and being part of a scam. Please give me your advise? Thank you.
Yep – the note rate and the APR will ALWAYS be different. APR is calculated based upon Upfront Interest, mortgage insurance, any discount points, origination fee… basically anything that might be considered a “profit” for the bank is calculated out in the APR (although Mortgage Insurance isn’t a profit for the Bank?). It is a fairly complicated calculation, but can be seen on the Truth in Lending Document.
Hi Eleanor
In the rate quote for arlene 3.875 with 4.39 apr. what is the difference there? With no closing costs does this make the apr higher?
Thanks in advance for your insight.
Hi! I have a case number which was assigned around April 5, 2012. We have not closed yet with Chase. Do you know if the case can be closed out and a new one started June 11 or after? The original 30yr FHA loan goes back to Nov 2008. Also, what will the FHA loan ‘funding fee’ be at after June 11? I was originally told that we needed a case number prior to April 9 since it was going up. I guess I’m a little confused over the MIP & ‘funding fee’ rate.
Thanks!!
I thinking the fha streamline refinance may be for me. I live in Ga, owe about $110,000 on my home . 5.25% for 30 yr fixed mortgage currently. Monthly pmt now : $688.73 (P&I), $106.51 (property taxes), $38.92 Insurance and $47.80 Mortgage Insurance. I was wondering what are the going rates and from what I am reading, it appears with a refinance, I would be paying my own property taxes and insurance. Does this sound correct?
Our FHA mortgage was completed May 29, 2009, We are checking for sure on the endorsement date but are pretty sure it was June 5, 2009!! Would we still qualify for this?? Is there ANYWAY to get around those 4 DAYS!?!?
Thank you!!
Hi Eleanor, my husband and I have an FHA Chase Mortgage and we have been calling them to do a Stream Line re-fi on our mortgage. They keep giving us the run around about the dates on when they will be able to offer the Stream Line re-fi program for FHA homeowners. They said at the beginning of June, now, they are telling us it’s going to be at the end of June. Our home value is $106,000 and we owe $154,000. We need a program that will allow us to not have to have a Loan to Value. Why do they keep telling us different stories and what do you think we should do? They have us going in circles. We have been trying to do this re-fi for several, several months now and we are at our wits end!! What can we do?
Hi Eleanor,
I live in Florida. I have a manufactured home. And would like to do a streamline refinance.
I have a FHA loan. Do they have programs for manufactured homes? Everyone I have contacted
Says they don’t have any programs for manufactured homes. Is this true? Because I would like to
Take advantage of these low rates too. My rate is 6.0% right now.
Hi Eleanor,
I have a situation similar to “Natalie” from previous posts. I live in FL and have an FHA loan at 6%. My lender (Chase) is offering to drop my rate to 4.25% for a savings of about $185 per month. Closing costs are $2300.
I wanted to shop around so I called Wells Fargo. A mortgage consultant said my best bet was to stay with my current lender. Anyone else would require an appraisal and other fees. I’m upside down in my mortgage, so I don’t know how an appraisal would affect another lender picking up my loan.
Do you think I’d be able to find a better offer with lower closing costs if I switched lenders? Any advice you can provide would be greatly appreciated!! Thanks!
I am underwater. Can I still refinance now? I have never been later and is current on payment. I moved in my house in August 2008.
Even though FHA may not have requirements, your Lender may have their own “underwriting” guidelines. I suggest calling another Lender
The 2nd mortgage must be subordinated (meaning the lender must agree to it). You’ll need to ask BOA – good luck!
Hi, Eleanor! I live in Georgia and am interested in the FHA Streamline Refinance plan that begins today, 6/11/12. I currently have a 1st and 2nd mortgage thru BOA (both FHA, I think). Also, we are not ‘under water’ based on estimates available on sites like Zillow. Both loans were closed prior to June 1, 2009 and I have never been late on payments. Does the new program apply to both 1st and 2nd mortgages? Can they be combined into a single mortgage under the new program? Your advice greatly appreciated!!
If you currently have a FHA Insured mortgage you should call a lender about the program.
Daisy – depending on what part of Florida you live in, the Wells consultant may be correct.
Liza – I think you will get the best terms by contacting your current lender. Wells might be able to help you – but very few lenders are financing, must less refinancing Manufactured Homes. Why? One reason is because each state handles the TITLE for Manufactured homes differently. Because of that, manufactured homes can not be “bundled” and sold in the Secondary Market the same way.
You will need to be patient, and keep making your payments. Whatever happens – do not stop making your payments! If you qualify for the program, try calling a different CHASE mortgage center? They have “real” loan officers, and you may be talking to someone at a Call Center. The volume is so high, that you’ll just need to be diligent, and patient.
Unfortunately, I don’t know of a solution – the Mortgagee Letter says the program is for folks who were “ENDORSED by.” However, mortgage rates are still very low, and you may see a savings by refinancing. You need to call a loan officer.
With the refinance, you will NOT be paying your own taxes and insurance, it will still be escrowed with your Principal and Interest payments. A refinance will save you money based upon what you’ve told me. You should contact a loan officer.
Eleanor
I called my lender today about this new FHA Streamline refinance program that started today and I was told that HUD requires a certain debt ratio to quailfy for this program, your debt ratio cannot be over a certain percentage to qualify for this program. Is this correct??? I thought that my credit was not considered. Been with the lender & house for 9 years never late on my FHA loan, I cannot understand why I cant apply for it? The debt is considered???
CeCelia
Hello Eleanor,
I closed on May 29, 2009 and called to find out that my endorsement date was June 15. I was fuming!! But I calmed down and talked to a loan officer at Wells Fargo about a possible refi. They asked for all my paperwork and I sent it in. They got back to me and said I qualified???? I didn’t argue. So we’re going to be signing the disclosures tomorrow. My question is, what happens if they are wrong? at what point does HUD or whoever reviews the loans look to see if the loan qualifies? Is this something that would be caught before the loan closes?
Wells Fargo is charging me 55 dollars to start the application for a FHA streamline for the reduced June 11 FHA fees. Anybody else getting charged for starting an application?
Eleanor, thank you sooooooo much for your blog! Without your information, I would not have been able to negotiate our refinance so well! We are refinancing FHA Streamline with new guidelines with our own mortgage company, Bank of America, for the following:
3.875%/APR 4.189% (was 5.0%)
P&I $438.10 (was $523)
PMI $42.35 (with credit of points .625%. stayed pretty much the same)
At closing approximately one payment and possibly will take off $400 of this amount since there is not an appraisal. This amount will keep my interest rate down. The only thing is it may take longer to close due to the volume right now.
Very little documentation needed. I tried to give the loan officer more information but he said “no”. He only needs what he needs and that’s that!
If anyone out there has an FHA Mortgage with Bank of America, you will like my loan officer, Jim Smith, 800-850-7655 x1563628 or better yet e-mail him (since they are soooo busy right now) at jsmith63@bankofamerica.com. Tell him the persistent Mylinda sent you! He is doing really great so far! Up front kind of guy!
Thank all of you for your questions and Eleanor for your blog! Happy refinancing! Mylinda 🙂
Hello Eleanor,
I have heard of all the great new Refi stuff happening starting on June 11th(today) and I currently own a home in Cary, NC but a few month’s ago we had to move to Illinois for personal reasons and had to rent out our home instead of sell it as we would be upside down on it. Now everyone is now telling me that I should refi with this new program as it would help out a great deal. I have a few questions. THe first one being since the the home I own is not our primary residence does that disqualify us from this new program? Does living out of state have any issues? How soon would I be able to refi if I still qualify based on the previous questions. I currently have the mortgage through Bank of America and would love to see if I can get this done. Any help and information would be greatly appreciated!!!
Thanks!
Michael – We can refinance your home in Cary. Just give us a call at 919 649 5058
Mylinda! That is such good news! Congrats!! 🙂
I am not surprised that Wells is charging, especially if you do not currently have your loan with them?
YEAH! For the folks who are calling their CURRENT Mortgage Holder – they are making some “bending” of rules. I would GO WITH IT. No, it will not be reviewed until AFTER the loan is closed.
Hi Eleanor,
I just got the answer to an apllication through FHA Streamline Refinance from my mortgage loan agent that the combination of our credit scores is 620 and we do not qualify. I thought that credit score was not an issue. I am with flagstar bank, I am with perfect payment history but my current rate is 6.75. Can you do anything for me?
Thank you,
Daniel
Hi Eleanor- Are you licensed in Georgia?
Thanks,
Joel
Thank you Eleanor. I really hope that it’s not just the loan officer messing up and is something that is going to be caught in underwriting or somehting. I wonder if we do close and HUD or whooever reviews them sees that it does not qualify, what would happen at that point.
Do you get to skip one month house payment with the new guidelines?
Can you please explain how closing costs will work with this new fha streamline refinance? Do we pay or will it be rolled into the loan? Also, I read that this loan is a no income verification, but my current lender asked for my income and employee info?
Judy – every lender is asking for different information. FHA is the Insurance Company. They say, we will insure loans that look like “this.” The LENDER (Bank) then decides what kind of credit risk they are willing to take. We do not require income documentation.
Secondly… the closing costs can NOT be added to the loan. I’ve talked to 3 other loan officers, most everyone is doing it “their” way. You can a) take a slightly higher rate, and get the loan officer to cover most if not all of the cost… you will be skipping a payment, so you can have the loan officer pay all of the costs, and you pay the “escrows” (taxes and insurance) until you get the refund from your current mortgage company.
Let me know if we can help! 919 649 5058
YES! If you close in July (which is really going to be the first time you will be able to do it) you will pay daily interest from the day of closing until July 31. Then, your first payment is due September 1st!
CAUTION – if a loan officer advises you NOT to make a payment (in this case for July) – I wouldn’t work with them. Just me.
You will be okay. The bank is not going to come back and call the loan.
We can do loans in Georgia! Yeah!
Danny – I’m sending you an email from my Team – Thanks. We run our loans through an Automated System. Some Banks are putting “Overlays” onto the FHA Guidelines. But as a Customer, with good payment history, I’m surprised! -E.
Eleanor, please thank Steve for returning my call but I think all is well now.
We were originally going with our own mortgage company, BOA, but Fearon Financial, A+ BBB rating, could not be beat! Fearon Financial Bryan Bradford (614) 768-1261 Bryanb@fearonfinancial.com. If you contact him, please mention our name, David & Mylinda Hardesty! He works from sun up to after sundown making sure EVERY question is answered!
With Fearon, loan amt stays the same, % & APR the same @ 3.765%, with lender credits we will be making money, up front PMI $0.00 to $9.00, monthly PMI stays the same due to us having a low PMI to begin with and closing within 35 days! Oh, we will be saving around $120 per month on P&I! That’s a motorcycle payment!!!!!
With BOA, 3.875%/APR 4.189%, $1000 to $1200 closing costs which will up our loan amount even though our original and past refiance have been with them and closing 6 to 8 weeks! The loan officer, Jim Smith, tried so hard to get close to Fearon but could only match the interest rate.
What I am saying is, keep on comparing until you find what best suits you which is what Eleanor has been telling all of us! It’s true, it’s true!
interested in refi for my home and several investment properties.
thanks
Jose – you need to speak with a loan officer. Depending on the size and number of Investment Properties, your best choice may be, unfortunately, one of the BIG Banks – like Chase or Wells
You just made me smile. It’s 7 pm my time. I started working at 6:45 this morning – and I won’t make money helping most of the people answering questions… but someone needs to continue to offer encouragement, and I’m glad that person gets to be me! Yeah for saving money every month!!!!!!
Hey guys! I’m finding 2 things that you need to consider about a refinance (at least in NC). Here, your Tax Value might be something like $188,000. If you’ve had your house since 2007 – you might figure that with a current loan balance of $140,000 we’re trying to rip you off by suggesting you REALLY need to go with the FHA Streamline Refi that has “PMI” on it. I’ve had several people who thought I’d pretty much lost my marbles!
Here’s the thing… we have “Automated” Value Systems – we can tell you what the system is “guessing” appraisal is going to come in at. That number is REMARKABLY close to a Zillow or Trulia number. So, unfortunately, depending on the area of town you live in… it might be telling me that the actual appraised value of your home is around $144,500. (This happened twice today) – I’ll need to write about it when I get time… but what I’m suggesting is that you do a little investigative work. We just don’t want to waste your money on an appraisal. 🙂
The other thing to remember is that we CAN NOT take off OR ADD someone to a Streamline Refinance… Title must remain the same.
Deb – the APR is not what the mortgage payment is being based upon. The rate you have is what we were quoting clients last week, and we were paying all of the closing costs… no cost to the client. Because we were paying the costs, it looked like (in the APR number) we were making a huge profit… we weren’t, because we were taking the money and paying attorney fees, title insurance, etc. The APR is (IMHO) a flawed mathematical equation. Does that help??
Hi Eleanor,
We have been preliminarily approved for FHA streamline refinance with rules that went into effect June 11 and are now going through the paperwork provided by the mortgage company. This is such a good program, especially since I figure will be saving about $240 a month in M&I payments. However, I notice a large jump from locked interest rate of 3.750 to the APR of 4.522. I read previous posts in which you explain that the APR represents “profit” to the bank for various things. Is it the APR that actually represents the calculation of what you pay for mortgage and insurance?? If so, do you think this difference is a little high?? IF so, how do I question the mortgage company about this? Thank you for your expertise and willingness to share it!
Hi Eleanor,
All the paperwork for the streamline refinance has been submitted to the mortgage company and awaiting final approval or closing date. Question: Is there an expiration date to the new FHA streamline refinance program that began June 11, 2012??
An end date has not been announced! Yeah!
How does this concern new FHA borrowers? As it is right now, the new PMI rates are prohibitive.
The new PMI rates are higher – it would depend on when you purchased your home, and what type of financing it is eligible for. At this time, President Obama is supporting a program that would make it easier for ALL homeowners to refinance
Eleanor,
Can the Mortgage company put additional regulations on top of this new program? Example debt ratio for the program shows no higher than 55% but can the mortgage company put a regulation on it as no higher than 45%? Seems like my mortgage company is making it so difficult to apply for this new program. I wasn’t told that there debt ratio regulation was lower that the new program ratio.
Thanks
CeCelia
Eleanor,
Can you recommend a Lender here in Indianapolis Indiana?
Thanks
CeCelia
Hi! I’m intrested in a FHA streamline my current rate is 7% my home is considered manufactured/modular currently worth 120k I only owe 84k any options for me with yor company? 🙂
Also it was purchased oct 2008 is that the “endorsement date” to be able to save with the new mip?
“At this time, President Obama is supporting a program that would make it easier for ALL homeowners to refinance.” How this make any sense? How is hiking up the upfront PMI and the monthly PMI help homeowners refinance? Homeowners who weren’t endorsed by FHA prior to May 31, 2009 are screwed. Rates are low but the hike in PMI premium is doesn’t make any sense to me. If you can explain, I would be happy to listen.
You need to go back to the folks you are currently making payments to – or Wells Fargo. They should be able to help!
http://www.larrythemortgageguy.com/home.html is who I would refer you to. Larry is a great Lender!
yes – any lender can add their “OWN” rules on top of FHA’s regulations.
Can you do a streamline refinance on an investment property? and are the rates much higher on an investment?
If you initially purchased the property as a FHA Owner Occupied home – and now still have a FHA loan, but you are renting it out (I think this is what you are asking) then yes – you can qualify for a streamline.
I sign on my loan in April 2009, the endorsement date by the bank wasn’t until June 3,2009. I missed the cut off date by 3 days, This really doesn’t make any sense to me. I cannot capitalized on a saving due to this stupid cut off date. I have never missed a payment and my credit score is over 800 yet I can’t get a lower streamline rate without the extra hike in PMI. Someone needs to change this stupid rule. Im still looking for a better option.
Al – I know it’s frustrating. There’s a new bill being floated called “HOPE” that gives a discount to First Time Home Buyers who take a class. It would be great if they would add a provision to that bill for Homeowner’s who have made their payments on time!
Charles – BOA has decided not to work with most of the programs available… so I guess I’m not surprised???
We can do loans in GA – the USDA version of this program is out of funds until after October 1, 2012. You can certainly call us, let us get all of the paperwork together, and be ready to submit it to USDA when they have funds. 919 649 5058
Mem,
I have FHA loan, which I refinanced March,2003. It was 6% . What is my choice now.
Please let me know
You need to call a loan officer TODAY – you can reach us at 919 649 5058 it will save you several hundred dollars a month
Can you do a streamline refi on a manufactured home???
Dee – very few companies will finance manufactured housing. I would suggest contacting Wells Fargo.
Have been trying to refinance with Fifth Third Bank for a year now. First under HAMP now with streamline. They continue to stall the proceedings. They said they had to have credit or underwriters approval and send tons of paperwork. Last they asked for a bank statement to prove we have funds for the $1000 fees for closing. What gives? I am in Ohio.
BTW the waiting game has cost me at least $1100 by now. Should I just go elsewhere for a loan?
Chris, I’m sorry you’ve had such a problem refinancing. If they don’t seem to be able to close you by the end of the month – you might want to call someone else.
Eleanor, when i tried to refinance throught this new streamline finance my lender kept stalling so I asked for my fee back and to cancel the refinance, they have put a Mortgage credit rejection with HUD on the FHA Connection, how can I get this change so I can go with another lender?
You will need to contact FHA Directly and tell them what happened. Their offices are really supportive. Here’s a Link I would start with the (800) 225-5342 number. I’m so sorry. We’ve had several problems with this…
Eleanor, I currently have a FHA mortgage loan since 2003 and applied for a streamline in September 2012. I have turned in all the necessary paperwork. I continue to receive pay-off notices from my current mortgage holder who is currently doing my refi. My initial closing date was to be no later than November 15,2012. I spoke with my mortgage consultant and she advised me to ignore the notices and assured me that as long as we close by December 18, 2012 everything will be fine. Well its almost January 2013 and in less than 20 days I will be approaching 120 days without closing on my streamline refi, is this normal and should I be worried. Do you have any suggestions for me?
Thanks Sherry
Sherry – please tell me you are somewhere I can do a loan! This is so sad. My guess is that the mortgage company is trying to “play” the market when they missed your closing date the first time. Rates have moved up, and then TODAY – they got better!!! PLEASE CALL US 919 649 5058 We would love to help you close… quicker. The challenge will be getting your current mortgage holder to release the Case number… but we can get that done too 🙂
Eleanor – I closed in October 2010 – the May 2009 PMI date is killing me.
Why can’t they make the lower PMI available to all re-financiers and leave the higher structure to new mortgages? Wouldn’t they be better off allowing me to re-finance at the lower rate as I’d be less risky? Seems like they are just being malicious to those who didn’t take out mortgages on their timeline.
I know this is a difficult thing to understand. I’m sorry that you are being negatively affected.
Hi Elanor. I’ve been trying to contact you to start the refi process but have been unsuccessful thus far. Please email me to let me know your availability. I’ve left my contact info on your and Steve’s voicemail and website. Thanks I look forward to hearing from you!
Hello,
My wife and I moved from NC 5 years ago. We have an FHA loan on our property there with a 7% interest rate. We are trying to purchase here but cannot until we get our payment lowered there. We are trying to get that loan paid down there in NC so we can get our DTI down. We are upside down on our there. It is currently serviced through bank of america since our original lender went under. Is there anything that can be done on this? My wife and I both have credit scores over 600.
Thank you for your help.
We should be able to help you – please call us at 919 649 5058
I know we talked with you last week – Glad we can help 🙂