The Basics on the FHA Streamline Refinance

Those who may have a non-FHA loan that is delinquent, and would like to refinance into an FHA secured mortgage, must fully qualify for the rate and term refinance. Once you go from and FHA loan to another FHA loan, you are then eligible to take advantage of the FHA streamline refinance program.




So, just to recap:

• The current mortgage must be FHA insured, and the mortgage must be current.

• The borrower must have a minimum fico score of 640.

• The refinance must lower your principal and interest payment.

• The borrower cannot receive cash out of more than $500.

• The borrower must bring one pay stub to show the ability to repay, but nothing is done with the paystub.

• Any second liens can remain in place, as long as they are still subordinate to the first.

• The term of the new loan must be the lesser of 30 years, or the unexpired term of the mortgage plus 12 years. You cannot go from a15 year loan to a 30 year loan.

• An appraisal is not required unless the closing costs are included into the loan, and the appraisal cannot put the borrower upside down. Those streamline refinances without an appraisal, are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium, plus the new upfront MIP if it is to be financed into the mortgage/

• No termite report is required.

• The borrower must have a minimum of 6 months of pay history.

• The borrower will need to provide one bank statement, and one mortgage payment to the closing table.

• Lastly, the borrower cannot be late or delinquent on any federal debt.



These are just the basic details, but with FHA the possibilities are endless, not to mention the rates are the lowest they have been in 50 years. The average FHA interest rate is 5.75, and can go as low as 4.5 if you qualify and the rates are available. The rates fluctuate daily with the market, but you can still look at the options with a 15 or a 30 year fixed rate. With as low as the rates are now, you will never need to refinance again. For more information on FHA, and how you can begin the process today, you can visit my website at www.fhaloansnow.net, or you can call me directly at (310) 498-2700.

Loving the FHA Calculator

I love the FHA calculator because it’s such a useful tool to help people know where they stand. People are going out trying to find ways to spend money they don’t have, and they shouldn’t. The use of the FHA calculator keeps it simple, and puts everything in perspective before you get carried away.




It is never too early to figure out how much you can afford, and the best part is it’s so easy to do with the FHA calculator. This is why I have them on my website, and encourage everyone to use them. You can plug in the loan amount, so if you have a particular house in mind then go with that. This way, you will know if what you are looking at is in your range. In addition, you can just plug in the interest rate and term, and it will give you the monthly payment with principal and interest, and with taxes and insurance.



The FHA calculator gives you real expectations on what you can afford, and that way when you search for a house, you will know what is in your budget and what isn’t. It’s all a matter of knowing what you can pay for, and if you don’t have any idea than you are in for a rude awakening. Go to your loan officer with confidence and knowledge that you have an understanding of what you can spend. For more information, or to view my FHA calculator on my website, you can go to www.fhaloansnow.net.

-Mayer Dallal

FHA Loan Calculator

With rates being at an all time low, it is amazing how low they really are. Every day, I have families coming to me that are looking to buy a home. There are some that qualify, and there are also a large number of people that don’t qualify.




FHA loan rates are at their best, and so it encourages you to start looking for a home. If you are searching for a home, look at your income and the level of obligations you have. Just because the rates are low, that doesn’t mean that you will pre-approved to buy a home. FHA rates don’t make you qualify, because there are many other determining factors.



It used to be that your credit was the standard for most lenders on what rate you would qualify for. Borrowers were having to look at how they fit “into the box”, and how high their scores were, or how low they were. With FHA rates, that is not the case. FHA utilizes common sense underwriting, so that you don’t have to sit and think about it. If you don’t qualify for a loan, then I will tell you why.



FHA rates are at an all time low, so to get more information on the programs and rates, be sure to visit. www.fhaloansnow.net.



-Mayer Dallal