New FHA Streamline Eligibility Guidelines

Is My Michigan Loan Eligible For Refinancing Under The FHA Streamline Program?

The FHA Streamline Program Offers Great Savings & Easy Qualifying for Michigan Homeowners. But, before you can reap the benefits of this program, you must determine if you are even eligible.

New FHA Streamline Eligibility Requirements

1. Must Currently Have an FHA Insured Loan

You must currently have a mortgage loan insured by the Federal Housing Administration (FHA). If you aren’t sure if yours is, check your original loan paperwork and monthly mortgage statement. VA and USDA loans are not eligible.

2. Current Michigan FHA Loan Must Have Been ‘Endorsed’ on or before May 31st, 2009

The FHA endorsement date is not the same as your home loan’s closing date. It’s the day that FHA actually reviewed your case, and approved it or “Endorsed you” for Insurance Coverage. *This date could be AFTER you closed!

Double check this or give us a call at 810-606-1075 Ext. 15 if you need help.

If your endorsement date is after May 31st, 2009, you may still qualify for another form of refinancing. You can check out other refinancing options here.

3. Have Not Refinanced Your Michigan Loan Within the Previous 6 Months

To avoid the constant churning of loans, the FHA has a policy of demanding a mandatory 6 month waiting period between refinances. If you have refinanced in the last 6 months you could still be eligible for the new FHA streamline program once this time period has elapsed, so feel free to contact us at 810-606-1075 Ext. 15 to get a quote and begin preparing your refinance loan application.

4. You Must Realize Tangible Benefit From Refinancing Your Michigan FHA Loan

This provision ensures that Michigan mortgage loan borrowers receive real benefit from refinancing. The guidelines call for a minimum payment savings of 5%, though most borrowers see much larger savings. It all depends on your current payment and rate.

Additionally, there are allowable exceptions when there are other important benefits realized, for example converting from an ARM (adjustable rate mortgage) to a fixed rate, or changing terms of fixed rate mortgages which result in real savings.

5. No Late Mortgage Payments in the Last 12 Months

In order to be eligible for the FHA streamline refinance program Michigan borrowers cannot have any 30, 60 or 90 day late mortgage payments within the preceding 12 months. The loan also must be current and up to date at the time of closing on the refinance. While the FHA itself has no other credit score requirements, individual mortgage lenders can overlay their own criteria. Many will ask for a 640 credit score, while others will permit credit scores of 620 and even lower.

If you have credit issues, please call our office at 810-606-1075 Ext. 15. We will guide you in selecting the best credit repair option for your situation. You’ll get sound advice and a personalized plan designed to help you raise your credit score in the shortest amount of time so you can get approved for your FHA Streamline loan.

6. Loan-to-Value

No appraisals are required to qualify for FHA streamline home loans making them perfect for underwater Michigan homeowners and reducing the costs and time frame normally associated with refinancing. So even if you owe twice what your home is worth you could still refinance with this program.

7. Income & Employment Verification

Again the FHA, who insures FHA streamline refinances in Michigan, does NOT require income or employment verification or calculate debt to income ratios BUT 95% of individual lenders do. However, some lenders may relax their limits on these types of mortgage loans.

8. Property Types

New FHA streamline refinances can be used to refinance and lower interest rates and mortgage payments for owner occupied residences Michigan.
 

Give us a call at 810-606-1075 Ext. 15 for Second Home and Investment Property Refinance Options.
Ready to lower your interest rate and start saving?