topic Re: streamline FHA--is it a valid route? in Mortgage Loans

streamline FHA--is it a valid route?

Anonymous — Tue, 28 Oct 2008 23:10:58 GMT

hi, just want to find out due to refinancing situation offered a 3 yr locked interest for a 30yr fixed but after 3yrs would check how the market goes. it's not a conventional ARM. what are your thoughts about it and if any are in this type of loan...help?

Re: streamline FHA--is it a valid route?

DallasLoanGuy — Tue, 28 Oct 2008 23:25:39 GMT

Sounds like one of two things are happening here....

1. The loan officer didn't explain this well.

2. You are being fed a line of bull$not

Tell us more about your situation....

Re: streamline FHA--is it a valid route?

BrianB_The_Loan_Professor — Wed, 29 Oct 2008 04:41:14 GMT

that or some creative marketing where in three years they will call and try and talk you into re-writing the loan so they can make more money?

Agreed more detail needed

Brian

Re: streamline FHA--is it a valid route?

Anonymous — Wed, 29 Oct 2008 18:40:06 GMT

Sounds like a 2/1 buydown?...Initial interest rate is lower the first couple of years and then the new Mortgage goes up after year three and fixed beyond. Lots of builders are doing this to entice right now....Works well for qualifying as well

Re: streamline FHA--is it a valid route?

BrianB_The_Loan_Professor — Thu, 30 Oct 2008 00:55:07 GMT

It could be a buy down but the time doesnt make sense?

the OP just needs to ask.....

Re: streamline FHA--is it a valid route?

Anonymous — Thu, 30 Oct 2008 01:29:04 GMT

They are offering you, as far as I can tell, a 3/1 FHA ARM, and telling you that you can refi with Streamline. This is a relatively "safe" ARM. It has a life time cap of 5 points up (so if you finance at 5%, it can only go up 10). Also, it can only adjust 1 point per year. It is still an ARM, but the rate is "fixed" or stable for 3 years.

In any FHA product, you can do a streamline refi after 6 months of on time payments. This means that you will not need to resupply documentation. they refi you into a fixed. Your payment must be lower as a result. No appraisal is needed.

Hope this helps.