What is it and how does it work?
An FHA Streamline mortgage loan is a government guaranteed loan designed to help homeowners lower their monthly mortgage payment. This program requires less paperwork and underwriting. As long as you have an existing FHA mortgage you are eligible for an FHA Streamline mortgage loan. You will need to work with an approved FHA lender like Network Funding.
What makes the FHA Streamline mortgage loan an attractive refinancing option?
- Minimal out-of-pocket expense
- Lower monthly payments
- Less paperwork
- Less restrictive underwriting
- Fast approvals
Call us today at 610.265.2500 and speak to one of our trained and licensed FHA Streamline mortgage loan experts to find out if you qualify for a FHA Streamline mortgage loan.
What do I need to qualify?
- You must have an existing FHA mortgage and have made the payments on time for the past year.
- You will need to find an FHA approved lender like Network Funding
- FHA streamline mortgage loans do not require an appraisal but they cannot exceed your current loan balance.
- You can choose to cover your closing costs in a variety of ways including paying for them yourself; using a “no-cost” lender credit FHA streamline loan; or by using an appraisal to determine the amount of equity you have in your home for the closing costs.
FHA 203K Streamline Program
Another FHA Streamline program was created to help homeowners modify or improve their home and is called the FHA Streamline 203K program. This program acts like the typical FHA Streamline mortgage with a few differences:
- You must use at least one contractor to do the renovations or repairs unless you can prove that you have the proper licensing and expertise.
- The minimum amount you can borrow is $5,000 to a maximum of $35,000. This amount can be used for many uses including removing lead paint, insulating and weatherizing you home or for many other home renovations that don’t involve major changes to your home.
- You must obtain a written estimate that breaks down the specific costs and the timeframe to complete the renovations. The contractor must sign the estimate of costs and do the work at that cost and in the timeframe specified.
- All permits and licenses must be obtained for the project.
Bear in mind that this program was designed for small renovations and not designed for structural alterations to your home such as those that require architectural designs. Any loan amount over $15,000 will require an inspection of the work by a third party upon completion of the job. There are generally two payments made to the builder even if the homeowner is the builder.
Record keeping is also needed for this type of loan and a list of what records you should keep during the renovations will be provided.
To get started, call our loan experts today at 610.265.2500!