The Federal Housing Administration (FHA), a wholly owned government corporation, was established under the National Housing Act of 1934 to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgages; and to stabilize the mortgage market. FHA was consolidated into the newly established Department of Housing and Urban Development (HUD) in 1965. Since 1934, FHA has been extremely successful in helping aspiring homeowners achieve their goals with less resistance like conventional loan programs commonly offer.
An FHA loan will allow you to put a very low-down payment on a home and maximize your purchase power when looking to purchase a primary residence or owner occupied property. The programs offer flexible “Make Sense” guidelines and lower credit score requirements to allow more opportunity for aspiring homeowners to purchase a home without having to be a perfect “A” paper buyer.
FHA Streamline Refinance
One of the many benefits associated with an FHA home loan is the ability to take advantage of the market when better rates become available. It is intended to reward responsible homeowners and offer lower interest rates and monthly payments with little to no cost to do so, and minimal paperwork to process. There are no limits to the amount of times an FHA homeowner can use this option to find payment relief when available, but the homeowner must benefit by a minimum of a 5% reduction in overall payment or change in term (ie. Adjustable to Fixed or 15 year to 30 year). The mindset behind the FHA Streamline Refinance is simple. If you can afford your home now, you can certainly afford your home when your payment is lower.
Below are the general guidelines to determine eligibility for an FHA Streamline Refinance:
You must currently have an FHA loan on your property
You must have a credit score of 620 or higher
No missed mortgage payments within the last 12 months
A minimum of 6 payments made on existing loan.
It is that simple!
If you are a current FHA homeowner and want to see if the opportunity to reduce your payment for free is available to you, or if you are interested in applying for an FHA loan to purchase yourself a home please feel free to contact us at (909) 457-0257 or apply online now.