FHA Streamline Refinance Now Open to Investors at Priority Mortgage

The FHA Streamline Mortgage is available for investment properties (that Currently have a FHA mortgage on them)

Dear Friends

Many of you have purchased a new house over the past few years and thanks to the low interest rates we’ve had, you may be enjoying a very affordable monthly payment.  Additionally, many people have been successful in lowering their payments over the past few years by obtaining a lower interest rate through the process of refinancing.  In most cases, there has been a program that has allowed someone with acceptable credit to refinance their home.  Unfortunately, there are some instances for one reason or another, a person with approvable credit has not been able to refinance their property.  One such scenario has often been for those whom have a FHA mortgage, and no longer live in the home, but currently rent it out as an investment property.  Now, Priority Mortgage/Polaris Home Funding is able to refinance these investment properties that currently have FHA Mortgages with the with the very popular FHA Streamline Refinance.

The FHA Streamline Refinance is most beneficial for those current FHA loans that were endorsed prior to May 31st of 2009.  For those FHA mortgages, the monthly Mortgage insurance on a FHA Streamline Refinance is in a sense, “grandfathered” and is not subject to the current (higher) FHA monthly mortgage insurance.  Over the years, we have been able to reduce many home owner’s payments with this program, and now we are allowed to make it available for FHA loans that are held on investment properties.  As a loan officer, I have been fortunate to have worked with many prior customers a second time by refinancing their current FHA mortgage, into a much lower rate, and with negative finance charges!  We do this by paying a Lender credit that exceeds the amount of 3rd party closing fees (basically title fees), with the additional amount left over paying for the home owner’s property taxes and home owner’s insurance.  Whether someone occupies or rents out a property that has a current FHA mortgage on it, here are some of the benefits to the FHA streamline refinance:

Advantages of the FHA Streamline Refinance:

  1. No Appraisal is required
  2. Employment is verified, but income is not (no qualifying based on debt-to-income ratios)
  3. Lender credits may be used to offset 3rd party closing fees and to pay for borrower’s property taxes & insurance
  4. As many of our past clients can attest, in some cases, a borrower may close on FHA Streamline refinance and:
    1. Reduce their interest rate; and therefore, their monthly payment
    2.  No have to bring any money to closing, have all 3rd party fees and new escrow account paid by Lender credit
    3. skip one month’s house payment
    4. get their current escrow balance
    5. not increase their current mortgage balance
    6. NOTE:  The FHA Streamline Refinance requires that the current loan on the property be an FHA loan.  It is most beneficial when the current FHA mortgage is older than May 31st, 2009 so that the lower monthly mortgage insurance applies.  Priority Mortgage/Polaris Home Funding credit score requirements for this program are 640 for owner occupant borrower’s and 660 for investors