If you currently have an FHA loan and you haven’t refinanced recently, take a minute and see if it would make any sense for you to lower your interest rate.
Right. This. Second.
Why?
Because the FHA streamline rules are about to change thanks to an a new announcement from HUD a couple of weeks ago that announced changes to the qualification criteria to the FHA streamline program.
For years and years, the FHA streamline program was designed as a “no income, no asset, no credit score no appraisal” refinance program that allowed people with an FHA loan to lower their interest rate without having to completely re-qualify for a new loan. Ok, so many lenders in the last year had started requiring credit scores, but not all.
But that all changed with the recent announcement.
And with the new changes, one of the big reasons that people in Arizona were lucky to have the streamline program will no longer be true. As you know, many people in Arizona who have bought a home in the last few years are in a situation where they currently owe more on their mortgage than their home is now worth. If they were lucky enough to have an FHA loan, that used to mean that the FHA streamline program was still a way that they could refinance into a lower rate. But soon, that will no longer be the case. Surety companies and mortgage bonds may become more prevalent.
With the new changes, anytime you do an FHA refinance streamline, you now are going to pretty much need to provide the same information you did when you first took out your FHA loan — income, asset, credit score information — and if you finance your closing costs (be sure to use a free mortgage calculator to see if it is worth it), you will need to also get a full appraisal.
The one bright spot in the announcement? The new rules take effect on November 17 of this year so you only have a little bit of time left to act.
If you hurry.
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