Homeowners Rejoice: June 2012 Update to the FHA Streamline is Here

Buying a new home in the current market seems to be the trend as prices have dropped considerably, offering a world of opportunity to first-time buyers who didn’t think they could afford a house before.

The bad news with this is that homeowners are currently suffering due to the significant value drop, putting many Albuquerque homeowners and New Mexico homeowners in the red and underwater because their mortgages are so much higher than the current value of their home. 

Many also have a mortgage loan interest rate that is considerably higher than the current record low interest rate. However, they are stuck – most cannot refinance to the lower higher interest and save money due to not qualifying because of their high balances and low home values.    

Yet, help has arrived in the form of the FHA’s Streamline Refinance Program.

New Opportunities to Refinance

On June 11^th this year, the FHA updated its FHA Streamline Refinance Program for homeowners, providing some more relief. Here are some of the changes:

• As of now, almost all fees have been sliced and diced from Mortgage Insurance thanks to the streamline. Your Mortgage Insurance can essentially be .01% if your current FHA loan was taken out prior to June 1, 2009.
•  Through the FHA, the monthly premium has been reduced by nearly one third, which means lower monthly payments for homeowners in New Mexico and around the country.
•  Simply put, these changes are allowing those with FHA home loans to take advantage of the new record low mortgage interest rates now below 4% -- something that has not happened since the 1950s.

Things You Should Know

Here are some other things to know about the changes to the FHA Streamline Refinance Program:

• There is no 'employment verification process' for the mortgage loan. Through this mortgage refinance program, no one will be checking into your employment status as part of the criteria for approving you for the home refinance program.
• Since there is no employment verification, there will also be no check into your income or finances.
• Finally, with the program’s 'No credit, no problem' mantra, there is no credit check requirement either, letting past mistakes stay in the past while you help build a better future.

In this housing market, the FHA Streamline Refinance Program is helping homeowners keep their homes and weather the current economic conditions until the market turns around and home values slowly return to a normal rate where those with mortgages are back in black and no longer underwater.

Be sure to contact us at Indigo Mortgage so we can answer your questions about the changes to this home refinance program and how you can benefit from it. After all, no one cares more for your mortgage loan than we do and are here to show you just how much we care!

Posted by Indigo Mortgage at 9:06 AM No comments: