FHA Streamline Refinance in , Georgia
The FHA Streamline Refinance is a popular program for , Georgia homeowners who are currently in an FHA loan and want to lower their monthly mortgage payment and interest rate.
One of the primary purposes of the FHA streamline program is to help borrowers obtain a new FHA loan that improves their financial position in , Georgia.
"Streamline" basically means that there are less hurdles you have to go through in order to qualify for a new FHA loan.
FHA Streamlined Refinance
Your refinanced FHA mortgage has the option of being streamlined as long as it meets some requirements. FHA loan eligibility requirements for the streamline refinance are as follows:
- Mortgage needs to already be FHA-insured
- Pre-existing mortgage must be up to date and current
- Refinance must lower monthly principal and interest payments or be converting from an adjustable rate mortgage (ARM) to a fixed-rate mortgage
- Cash-back is not an option for a streamline refinance
The Streamline Refinance FHA Mortgage can help save time and resources by not requiring as much paperwork as other refinance programs. This is possible is by offering a non-credit qualifying streamline loan. A non-credit qualifying streamline mortgage will cancel out the need for new credit checks and job verification and use your current mortgage as a way of qualifying you. Assuming that the borrower meets all of the qualifications for an FHA refinanced mortgage, along with the refinance lower monthly principal and interest rates, the borrower could be eligible for a non-credit qualifying FHA streamline loan in , Georgia.
The only other FHA eligibility requirements for a non-credit streamline mortgage include:
- Having at least six months pass since the first due date of the existing mortgage
- A minimum of 210 days must have passed since the closing date of the existing mortgage
A borrower may not qualify for a non-credit qualifying FHA streamline loan if the monthly principal and interest rates increase as a result of the refinance. The borrower will still be eligible for a streamline loan but will still need to submit to a credit check.
Qualifications of a , Georgia FHA Streamline
FHA eligibility requirements for an FHA refinance in Georgia tend to be much easier than qualifying for conventional private refinance programs. Typically you can qualify with a credit score of 620 and no more than two 30-day late payments in the past two years. Qualified borrowers will also have two years of steady employment with an income that has either maintained consistency or increased. Additionally, the applicant should not have a bankruptcy within the past two years. The income requirements look to see that the borrower's monthly mortgage payment is only 30% of their monthly gross (before tax) income.
Advantages to an FHA Refinance in , Georgia
A Federal Housing Administration refinance has many advantages that make refinancing through the FHA worthwhile for home owners in , Georgia. One available option for a refinance is the cash-out refinance which allows owners to take out loans against their existing equity. Home owners who own their home outright can borrow up to 85% of their property's value with easy qualifications.
Another advantage is that the FHA refinance loan allows refinancing of up to 96.5% of the property's value. This is ideal for those who still owe a good portion of their existing mortgage. Credit and income qualifications are minimal requiring only a 620 credit score while still providing competitive rates. Bankruptcies more than two years old and foreclosures more than three years old will not disqualify you from an FHA refinance mortgage.
Streamline refinance options are available to those who already have an existing FHA loan. The streamline refinance option considerably cuts down on the amount of paperwork and qualifications needed to complete your refinancing process. Converting from an adjustable-rate mortgage and a fixed-rate mortgage is an option for the streamline option.
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