What's the difference between us and other lenders on an FHA Streamline?
Other lenders typically can offer a lender credit to cover your closing costs, but typically at a higher rate than what we offer. They'll also ask you to bring in $ to cover your old mortgage payment, and $ to setup a new impound account.
With Smart Rate, if you qualify*
- We'll lower your rate AND offer you a lender credit (Box J) to cover ALL your non-recurring closing costs (Boxes A-C).*
- You still owe your previous lender a mortgage payment, so at close you still have to bring that $ to escrow.
- However, Smart Rate has perks. When it comes to your impound account, we explore additional lender credits, to save you even more money when refinancing.
*Once again, this is not a commitment to lend. Loans are subject to borrower qualification and final credit approval. You must qualify for the FHA Streamline, and are subject to underwriting and loan program guidelines. Subject property must be deemed owner occupied, have a conforming loan amount greater than $300k, and have a qualifying FICO of 700 or above. Rates are subject to change and without notice based on applicant's eligibility and market conditions.
When you apply for an FHA Streamline, these items will be needed.
- A copy of your drivers license(s) and social security card(s)
- A copy of your current mortgage statement
- A copy of your mortgage note and most recent property tax bill
- A copy of your hazard insurance declaration page
- A copy of your most recent bank statement
- One utility bill (water, electricity, gas, cable, etc.)
What Is An FHA Streamline Refinance?
If you already have an FHA mortgage then you might qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.
Here are some really cool facts about an FHA Streamline Refinance:
- No Appraisal is Required – because your loan is already guaranteed by your existing FHA loan, the FHA will allow you to use your home’s original purchase price as your home’s current value.
- You can still refinance even if you are underwater – even if you owe more than your home is worth, you might still be able to get an FHA Streamline Refinance loan.
- There is no FHA prepayment penalty to worry about.
- FHA Streamline refinance rates are the same as “regular” FHA loan rates.
- Employment verification is not required with an FHA Streamline Refinance – in other words, no paystubs, no W-2s or tax returns are required for approval.
- Income verification is not required with an FHA Streamline Refinance
- Credit score verification is not required with an FHA Streamline Refinance – instead of checking your credit, your payment history is used to determine fi you qualify or not. You must have no late payments in the last 90 days and only one or less late payment within the last 12 months.
The Refinance Must Have A "Purpose"
Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:
- Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
- or Reducing your principal + interest + mortgage insurance 5 percent or more.
Your Loan Balance May Not Increase To Cover The New Loan Costs
The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance may increase but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.
These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.
