Home Financing 101: the Fha Streamline Loan
Author: AccessNational
If you need a quick and straightforward way to refinance your exciting FHA loan, you might want to consider applying for an FHA streamline Loan. This article provides FHA Streamline Loan information and tips on how to submit a FHA Streamline Loan application.
FHA Streamline Loan Information - What Is It?
The FHA Streamline Loan is used for refinancing a home. The Federal Housing Administration created the streamline loan so that people could refinance their loans. The term "streamline" simply refers to the kind of refinancing plan you are using. With an FHA Streamline Loan, information requirements are simplified which results in reduced paperwork, underwriting, and documentation. The trade off with an FHA streamline refinance is higher restrictions, however if your purpose is mainly to reduce your payment or change terms, you should seriously consider the FHA Streamline Loan. Information on qualifications and restrictions are included below. For FHA Streamline Loan application information specific to your situation, you can talk to an FHA lender.
FHA Streamline Loan Information - Will My Costs be Reduced?
With a successful FHA Streamline Loan application, your monthly costs and/or overall mortgage costs over the life of the loan will reduce, but a Streamline FHA loan is not cost free - closing costs either need to be:
- Paid out-of-pocket - Included in the loan amount, or - Exchanged for a higher interest rate (yet one that is still lower than the current rate)
Depending on the details of your situation and your FHA Streamline Loan application, you may be able to obtain a streamline refinance without paying any out-of-pocket fees, though.
FHA Streamline Loan Information - Who Qualifies?
The requirements for an FHA Streamline Loan application are:
- The mortgage to be currently insured by the FHA - The mortgage to be current—not in default, no late payments - The refinanced loan to result in lower monthly payments (principal and interest) for the borrower - Subject loan to be more than 6 months old
Additionally, an FHA Streamline Loan may have other restrictions. Cash-out is not an option with the FHA Streamline Loan application, and there are limits on the length of the term (30, 15 yrs, etc.) relative to the current situation. Basically, the new loan cannot greatly increase the life of the loan for loans that have been paid down a lot, and a 15 year mortgage cannot be refinanced into a 30 year term. Clarifying what you are able to accomplish will require more specific consideration of your specific FHA Streamline Loan information with the aid of a qualified FHA lender.
FHA Streamline Loan Information - How Do I Apply?
To have your FHA Streamline Loan application processed, you will need assistance from a competent FHA lender. If you feel that an FHA Streamline Loan is right for you, you should contact an FHA lender to discuss terms and rates. They will help you fill out an FHA Streamline Loan application and will provide you with more information about the process.
The focus of the FHA Streamline Loan Application is to make your home's mortgage more affordable and more manageable for you. If you've had your current loan for a good amount of time, improved your credit standing, or increased equity in your home, it is time to contact your FHA lender for more FHA Streamline Loan information to learn how you may benefit from an FHA Streamline Loan application.
About the Author:This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.
Article Source: http://www.articlesbase.com/loans-articles/home-financing-101-the-fha-streamline-loan-239766.html
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