Livonia, MI (Vocus) October 21, 2009
The Federal Housing Administration (FHA) has announced significant changes to their FHA loan program. In response to the recent economic downturn, the FHA will bolster requirements for loans beginning Nov. 17, 2009. Homeowners looking to refinance their FHA loan should talk to a home loan expert about refinancing now in order to avoid more stringent requirements.
FHA Streamline is a refinance process designed for homeowners who currently have an FHA loan. Previously, homeowners can refinance to a lower rate without an appraisal. However, after November 17, 2009, appraisals are required if clients roll any portion of the closing costs and prepaid fees into their mortgage. Clients also have to pay all points in cash with the new requirements.
Traditionally, FHA loans have increased access to homeownership by offering lower down payment requirements for getting a mortgage. The credit requirements are more flexible for these loans, and the amount of documentation required is much more limited.
The new changes to the FHA Streamline refinancing process will require homeowners to make at least six mortgage payments before they are eligible for refinancing. Homeowners interested in rolling in closing costs will need an appraisal regardless of the amount. A verbal verification of employment will also be required, along with a verification of the assets available at closing.
In order to avoid losing eligibility for an FHA Streamline refinance loan, homeowners should contact their Quicken Loans mortgage lending expert now to begin the process. Find out how much money you can save today by using the Quicken Loans interactive mortgage calculator. For more information about FHA Streamline loans, you can visit our FHA information page or call us at 1(800) 251-9080.