WANT TO REFINANCE YOUR FHA, VA OR USDA LOAN?
WE CAN HELP YOU “STREAMLINE” THE PROCESS!
When rates drop, smart homebuyers want to know if refinancing their loan would be beneficial. We love helping our clients refinance, but we especially love the Streamline-types of refinancing programs available from the FHA, VA and USDA. Here’s why: they require much less documentation, NO appraisal and typically close much faster than a traditional refinancing loan.
Reasons why you might want to refinance:
- To lower your monthly payment
- To reduce your mortgage term (e.g., go from a 30-year term to a 20- or 15-year term)
- To drop your mortgage insurance (thus, lowering your payments)
- To convert your loan from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
- To access cash by taking advantage of your home’s increased value
The FHA Streamline Refinance Program
Named because it allows borrowers to refinance an existing FHA loan to a lower rate more quickly than the typical conventional refinance process, the Streamline loan saves borrowers time and money. Here are some important FHA Streamline facts:
- Does not require an appraisal – uses your original purchase price as your home’s current value, regardless of what your home is worth at the time of refinancing
- Does not matter if you have no equity built up in your home or even if you owe twice what your home is now worth
- Available as a fixed-rate or adjustable mortgage
- Available in 30- or 15-year terms
- No FHA prepayment penalty
- Those refinancing within the first three years of opening their loan may be entitled to a refund credit on their mortgage insurance premium
The VA’s IRRRL Loan (Equivalent to a Streamline Loan)
The VA’s version of a streamlined loan is called an Interest Rate Reduction Refinancing Loan – or IRRRL. This loan is specifically for veterans who would like to refinance their current VA loan. Here are some important IRRRL facts:
- No appraisal or credit underwriting package is required
- May be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs
The USDA Streamlined Assist Refinance Loan
Rural homeowners, even with low or no equity, can take advantage of a streamlined refinance loan program to obtain affordable payment terms, too. Here are some important USDA Streamline facts:
- No new appraisal, except for direct borrowers who received a subsidy during their loan term
- Direct borrowers that owe subsidy recapture may subordinate this amount if they are unable to pay it in full
- No credit review, but mortgage payments for 12 months prior must verified
- No home inspections or calculation of debt ratios
- At least a $50 net reduction to principal, interest, real estate taxes and homeowners insurance (PITI) payments compared to current PITI
It doesn’t cost anything for us to run the numbers for you, so give us a call or fill out the form on this page and a loan originator will get started on it. Don’t wait, though. Nobody knows how long rates will remain this low!
Disclaimer: Additional terms and conditions apply. Call for details. Accurate Mortgage Group will issue a lender credit at closing for the amount of closing costs on the loan. Lender credit will include the following fees: lender fees, government recording charges, documentary stamps, intangible taxes, appraisal fee, title charges, and other applicable third-party fees. Appraisal fee paid for purchaser up front but fully credited at closing. Lender credit does not include rate discount costs/discount points, prepaid escrow items, prepaid mortgage insurance premiums, or the payment of a mobile notary fee if the selected closing agent has an office which serves the area, or additional non-standard services requested by the purchaser. Included closing costs are paid in the form of a lender credit at closing. Additional limitations to the lender credit may apply when used in conjunction with any other Accurate Mortgage Group offer(s). Consumer may choose not to impound escrows. In such an event, additional costs may apply.