The news today does not project sunny conditions with so much unemployment and closing business but not to despair, there is some good news for the homeowner. The latest good news for the one who owns his home but still is making mortgage payments is that of Streamline FHA Loans.
Mortgage rates have gone through the overhead due to the downturn in the economy and the government has realized that there needs to be a better way for the struggling homeowner to stay in his home but not be under this outrageous financial burden. It is with this realization that we now have options available.
There are some magnificent faces to this new financial bandage. Qualifications for the Streamline FHA Loans are those who are already FHA mortgage holders and therefore, it is not necessary to complete many of the steps that one might be required to do if going outside the FHA for refinancing. There is no credit check and no debt-to-income verification as that was already completed with your initial application. You have proven your credit worthiness previous. Much of this application can actually be done with a please phone call or even over the Internet. No appointment with a loan officer is the end result.
It is your call as to whether or not to have your home re-appraised for this loan. In the event that you do not have re-evaluation, the Streamline FHA Loan can not exceed the original loan amount. With having the property re-approved, you could qualify for the higher amount if the property has accrued equity. This is the determining factor but this should be determined prior to making applications so as to expedite the loan process and prevent problems.
With these loans, there will be no cash back as with other types of refinancing but the benefit means that each month you will be paying a lower payment on a permanent basis.
There are some prerequisites to these loans. With the Streamline FHA Loan, you must be occupying this property as your primary residence and you must be current on your FHA mortgage. If you are not current, there are other options that you may discuss with an FHA advisor.
So even though the economy is struggling you do not have to struggle with your mortgage payment if you already have a FHA mortgage loan. Streamline FHA loans can be the homeowner's life raft for millions of Americans!