Mortgage Loans

[krielly]

We have an FHA loan at 4.5% (15 year) which we have 12 years, 9 mos left to pay. I know that FHA Streamline Refinancing has recently changed for borrowers within certain timeframes to eliminate/reduce closing costs. We do not fit within that timeline. I had an email exchange with someone from Wells Fargo (our existing mortgage co) who basically just said, you don't qualify for streamline because you don't fit within that time period. I know we don't qualify for the reduced costs, but does that mean we don't qualify for the typical streamline refi??

Thanks

K

[webhopper]

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krielly wrote:

We have an FHA loan at 4.5% (15 year) which we have 12 years, 9 mos left to pay. I know that FHA Streamline Refinancing has recently changed for borrowers within certain timeframes to eliminate/reduce closing costs. We do not fit within that timeline. I had an email exchange with someone from Wells Fargo (our existing mortgage co) who basically just said, you don't qualify for streamline because you don't fit within that time period. I know we don't qualify for the reduced costs, but does that mean we don't qualify for the typical streamline refi??

Thanks

K

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I am currently doing an FHA streamline refinance with First National Bank of Layton.  Your loan would definately qualify for an FHA Streamline Refinance, but your up-front costs may be higher.  The good news is that the lender can usually roll these costs into the new loan amount.  In my case, they cannot, since I am refinancing a property that is now used as an investment property (I do not live there anymroe).  Here has been my journey:

May 2012:  Found out FHA Streamline Rules would be changing... I intereviewed 9 lenders, 3 lenders stated that they could do the FHA Streamline Refi on my investment property...   I went with the LO who seemed most knowledgeable about the program (she deals solely and specifically with refinancing FHA and VA loans) and who could give me a good deal of lender credit towards closing costs if I accepted a rate that was .15% higher.  Also got married in May

June 2012:  Continued to stay in touch with my LO, paying off CC debt from wedding, removed an inaccurate judgement reporting on my TU report

July 2012:  Paid off CC debt completely, applied for the FHA Streamline...  My scores came in at 694, 693, 748....  Moving forward. LO estimates a Sept - Oct closing due to the volume of loans going through right now.   Signed a GFE on August 3.

September 2012:  My file makes it through initial underwriting.  I provided a Letter of Explanation for 4 deposits (expense reimbursements and payroll funds transfer)

File sent to final underwriting two days ago...

Scheduled to close before Oct 15....

Out of pocket costs for my loan:  3k...      Reduces my monthly mortgage payment on the property by about $700 / month

If you would like the name and contact information for the lady that I'm working with, please send me a private message.   She always answers my emailed questions within 24 hours.  Usually she responds within the hour...   Which is rare in a LO!

[krielly]

Wow! Good for you!

[webhopper]

Here is the web address for the FHA Streamline booklet from HUD.

http://portal.hud.gov/hudportal/documents/huddoc?id=4155-1_6_secC.pdf

You may want to interview different lenders to find one who is willing to work with your situation.