The FHA Streamline Refinance is by far the easiest loan program available for Orange County, CA home owners. Of course, the catch is, in order to take advantage of this program you must already have an FHA loan. This is strictly an FHA to FHA refinance program.
What Makes the FHA Streamline Refinance so Easy?
- No Appraisal required (not kidding about this)
- No income documentation required, meaning there are no "debt to income" calculations run on this program.
- Very little paperwork (obvious just by the fact that there is no income documentation)
- Little or no closing costs. Most lenders will waive their typical lender fees and issue a credit to the FHA borrower to cover escrow, title, recording and other closing costs.
- The Orange County FHA home loan payment, including principle, interest, taxes, and insurance, must drop by a minimum of 5%. For example, if an FHA home owner in Placentia has a total PITI payment of $2,000 per month, then the new payment must be $1,900 or less.
- The FHA home loan borrower must currently have a job. This will be verified. Debt to income ratios are not calculated, but the Orange County FHA loan company must make sure the FHA borrower at least has a job.
- Assets used to close need to be verified. Closing costs cannot be added to the new loan, unless an appraisal is being used to verify the property value. It is typically more beneficial for the FHA borrower to not finance closing costs into their loan over the next 30 years. Take a slightly higher rate and have the lender credit the closing costs. While 30 days interest can be financed into the loan (some lenders like to call this "skipping a payment", but the more appropriate description is to "finance a payment"), some money will still be needed to close to cover the new impound account for taxes and insurance. Even this is a "wash" since the old, or current, impound account will be refunded back to the borrower a few weeks after the close.
- The FHA borrower cannot be late on their mortgage.
- The FHA loan being refinanced must already have 6 payments made. In reality, 6 Mortgage Insurance payments must be received by FHA. Typically, the 6th Mortgage Insurance payment will not be received until about 30 days after the 6th payment is made.
Contact us for your Orange County FHA Home Mortgage:
Call our office today and see how we can help you and your family.
949-829-1846 | tstorm (at) ochomebuyerloans.com