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Regular Contributor
Posts: 217
Registered: ‎01-15-2009
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FHA Streamline Refi

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


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: FHA Streamline Refi


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


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!

 

 

 

 

 

 


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Regular Contributor
Posts: 217
Registered: ‎01-15-2009
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Re: FHA Streamline Refi

Wow! Good for you!


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: FHA Streamline Refi

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.

 


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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