FHA Streamline Refinance in , Georgia
With today's historic low interest rates, many homeowners in , Georgia are thinking of refinancing.
For those with FHA-backed loans, there's a program that makes it easy. It's the FHA Streamline Refinance option.
A Streamline Refinance gives FHA borrowers the opportunity to lower their interest rates and their monthly payments-and save time and hassle while doing it.
For borrowers with adjustable rate mortgages, a Streamline Refinance can offer the safety and stability of a fixed-rate loan.
With a standard Streamline Refinance you can bypass a lot of the paperwork normally required for a new loan. For instance:
- The lender isn't required to order a credit report.
- There's no need to verify your employment.
- You won't need an appraisal. (Your FHA lender in , Georgia may ask for an appraisal, but FHA doesn't require it. And if an appraisal is ordered but the result doesn't suit your needs, your lender can ignore it!)
So How Can I Qualify for an FHA Streamline Refinance?
- Your mortgage must already be FHA-insured.
- Your mortgage payments must be current.
- Your new loan must lower your monthly principal and interest payments, or be converting from an adjustable rate (ARM) to a fixed-rate.
- The home must be your primary residence.
- Your current loan must be at least seven months old (six months since your first payment due date).
What About Taking Cash Out?
The Streamline Refinance program doesn't allow you to take cash out, except for "minor adjustments at closing" up to $500. But there are other FHA refinance programs that include a cash-out option in , Georgia.
What If I Don't Qualify for a Streamline Refinance?
There are certain circumstances that could make you ineligible for a standard Streamline Refinance-for instance, if you just moved to the property and assumed the loan from the previous owner.
Fortunately, FHA has taken such circumstances into account, and offers a modified version of the program called a credit qualifying streamline refinance.
With this option you'll need to provide some of the paperwork that's common with a new loan: credit reports, documentation of your income, and calculation of your debt-to-income ratio. But it's still an attractive alternative to a normal refinance.
A credit qualifying streamline refinance can also be a good option if your new loan will result in an increased monthly payment.
Even a non-streamline FHA refinance will typically be easier to qualify for than a conventional private refinance. You may qualify if you have credit score of at least 620 and no more than two 30-day late payments in the previous two years. Qualified borrowers in , Georgia will also have two years of steady employment with an income that has either remained constant or increased. And you should not have filed bankruptcy within the past two years. Your new mortgage payment should be no more than 30 percent of your monthly gross (before tax) income.
More Advantages to an FHA Refinance in , Georgia
We've mentioned the cash-out option that is available with some FHA refinance loans. And there are more benefits of an FHA refinance that could apply to you:
- People who own their homes outright can borrow up to 85 percent of their property's value with easy qualifications.
- FHA will allow you to refinance up to 96.5 percent of your property's value. This is ideal for those who still owe a good portion of their existing mortgage.
- Credit and income qualifications are minimal-you can get an FHA refinance at competitive rates with only a 620 credit score.
- You can get an FHA refinance even with bankruptcies on your record as long as they're more than two years old.
- A foreclosure won't disqualify you from an FHA refinance as long as it happened at least three years prior.
With all these benefits, it makes sense to explore the possibilities of an FHA refinance-especially now, while interest rates are low.
Interest rates in , Georgia are at historic lows! Find out if you're eligible for an FHA Streamline Refinance today!