Easy, breezy refinancing with FHA and USDA
June 26, 2012
Are you a homeowner with an FHA loan opened on or before May 2009? Or a USDA rural loan for at least 12 months? If so, there’s good news for those looking to refinance to a lower rate and cost.
Under the Obama administration, both FHA and USDA have implemented easier refinancing guidelines to help the housing market’s recovery and homeowners who are underwater. Essentially, the programs aim to lower monthly mortgage payments with all-time low interest rates and expedite the process by reducing some requirements and paperwork. One critical requirement is that you must have 12 months of on-time mortgage payments and proof of sufficient income to qualify.
A few of the key changes include:
- Eliminating a new appraisal.
- Lower interest rate and monthly payment.
- Lower Mortgage Insurance charges.
- No cash out of the refinancing.
While both are intended to be breezy transactions, they each have their own specific requirements which unfortunately may exclude many desperate homeowners. This is particularly true for FHA mortgages taken out after the May 31, 2009 cut-off date. Housing prices and interest rates have continued to go down over the past three years. With that, there are many who would no doubt want the opportunity to save some money as well as their home.
The FHA and USDA Streamlined Refinancing have just recently been launched and come on the heels of the government’s new, improved HARP 2.0 (Home Affordable Refinance Program) that assists those with Fannie Mae or Freddie Mac mortgages. There just might be a safety net out there for you, and we can help you find it – for free!