If you have bad credit and an existing FHA loan, consider the FHA Streamline Refinance … Gustan Cho is a senior mortgage expert and National Managing Director, providing direct-to-consumer advice at Loan Cabin. You are struggling to make your mortgage payments. Rate Search: Compare Refinance Rates with FHA Lenders. The FHA charges two kinds of mortgage insurance that apply to FHA Streamline Refinance loans. A refund on the original upfront MIP payment if you got your FHA loan less than 3 years ago. 2. This BLOG On FHA Streamline Refinance With No Income Check Was UPDATED And PUBLISHED On November 17th, 2020. The FHA Streamline Refinance program allows individuals and families with an FHA-insured loan to take advantage of lower rates with minimal paperwork. Any logical, fluent English-speaking person would believe that, no credit, as implied by the term “non-credit” would suggest that there is no need for your credit to be involved. It’s a good idea to get loan quotes from at least three lenders to compare closing costs, interest rates, and other fees to ensure you’re getting competitive loan terms. Again, you don’t need to go through a credit check and you also don’t need to verify your income or your home’s value. Your email address will not be published. The primary “pros” of the FHA streamline were already mentioned above, which includes the overall simplicity of refinancing using this program. How long does it take to close on a FHA streamline refinance? This is almost impossible to find with other refinance … FHA cash-out refinances require a home appraisal, credit check, income verification, and a maximum debt-to-income ratio of 50%. The average time it takes to complete a streamline refinance is 30-45 days. You should lower your interest rate or refinance into a less … They do not require a credit check, home appraisal, income verification, or money out of pocket. fha case number for the refinancing mortgage no earlier than July 1st.. They allow borrowers to refinance to a lower interest rate without requiring a credit check or income verification, making the process quick and easy. FHA borrowers with more than 20% equity can drop their mortgage insurance premiums by refinancing their FHA loan into a conventional loan. 2015. Is your rate above 4.5%? These costs cannot be rolled into the loan. All Rights Reserved. • Down payment of 10% or more MIP duration is 11 years, • Down payment of less than 10% MIP is required for the life of the loan. You can avoid paying PMI by refinancing into a conventional loan. The FHA Streamline refinance rates change often and differ between mortgagors. FHA streamline refinancing is a quick and easy way for FHA borrowers to take advantage of these historically low-interest rates and lower their monthly mortgage payments. Therefore, it is wise to compare rates when doing an FHA Streamline refinance. It shortens the time requirements to complete the refinance. The FHA also did away with required credit checks for the Streamline program, with the idea that people who qualified for an FHA mortgage originally should still be able to do so. FHA Streamline Refinancing loans--which are issued for those with existing FHA mortgages--are available in two ways. No LTV restrictions. The FHA does not require lenders to perform a credit check for a streamline refinance. Almost two-thirds of FHA borrowers had scores below 679 in 2019. Your mortgage must already be an FHA loan in order to qualify for an FHA Streamline refinance, plus: We are a mortgage brokers licensed in multiple states. This is a fee you will pay upfront; however, you must not pay in cash; it can be added to your loan. Mortgage rates are increasing but homeowners still have high mortgage rates in the 7% range. If you’re able to meet the requirements, a conventional loan will be a cheaper option than FHA. Requirements for a streamline refinance - FHA does not require a credit report or credit score for a no credit qualifying streamline refinance without an appraisal. In order to get a FHA loan, you would require a credit score of 600-620 at least. Streamline refinance is a good option if any of these is true: If you have an FHA loan, you can be eligible for a streamline refinance 210 days after closing. Advantages of the FHA Streamline Refinance: Below are some of the most notable advantages of the FHA streamline refinance program: No new appraisal is required. Or email us at gcho@gustancho.com. The upfront mortgage insurance premium (upfront MIP) is equal to 1.75% of the loan amount. When is a borrower eligible for a no-credit check FHA streamline loan? You’ll need to speak to an FHA lender about how much of a refund you may be due. A credit-qualifying streamline refinance requires your lender to perform a credit check, calculate your debt-to-income (DTI) ratio and assess your ability to continue paying your mortgage. If the thought of refinancing your FHA mortgage entices you, it’s most likely because you’ll prosper to some extent. Conventional loans do not require PMI on mortgages with an LTV ratio of 78% or less. So if you closed on your FHA mortgage before 2015 a streamline refinance will reduce your MIP rate by 0.50%, or $500 per year for every $100,000 financned. If your interest rate is higher than current rates, you can reduce the amount of interest you pay and lower your monthly payment with a streamline refinance. Home purchase loans and refinance mortgage loans require income documentation, minimum credit score requirements, and asset and liability verification through bank statements and credit reports. In this article, we will cover and discuss FHA Streamline Refinance With No Income Check. If you owe more on your mortgage than your home is worth (loan-to-value ratio above 100%), you still may qualify for an FHA streamline refinance that is great for borrowers with little to no equity to refinance their loan. Conventional loans do have more stringent requirements than FHA. No credit check: FHA does not require a minimum credit score and there's usually no full credit check or credit report review required. There is no credit check, employment verification, income documentation, or appraisal required. Benefits of an FHA Streamline Refinance. It is the simplest and easiest way to refinance an FHA loan. The current upfront mortgage insurance premium is 1.75 basis points or 1.75%. The FHA relies on your mortgage payment history alone. You should always compare rates and lender fees with 3-4 lenders before making a decision. You can speed the process up by providing any documents to your loan officer as quickly as possible. If you have a VA loan, the VA has a similar program as the FHA. Instead of going through a credit check … No credit check — A low credit score won’t stop you from using the FHA Streamline program. 2. FHA Streamline Refinance Call (314) 361-9979 :: It allows eligible homeowners to refinance at a lower mortgage rate with no income verification, appraisal, or credit check. There are a couple of “cons” with the FHA streamline refinance. Rates might be offered as a 5-year ARM (adjustable rate mortgage) as well as a 15-year or 30-year fixed loan. The FHA Streamline Refinance Loan is a unique type of refinance option borrowers with existing FHA mortgages have. Unlike a traditional refinance, the FHA Streamline Refinance allows borrowers to “streamline” their refinance by not requiring them to get an appraisal on their home or verifying their income. If you read the terms of the Non-Credit Streamline FHA loan it would be further evident when it describes your current mortgage status as qualification. You must be current on your FHA loan and have no late mortgage payments in the last six months. Homeowners who currently have an FHA loan and had it for the past six months and been timely on FHA loan, they can qualify for an FHA Streamline Refinance with no income check. You can qualify for a streamline refinance regarless of your income level. Check FHA refinance rates today. You can take advantage of today’s low-interest rates and lower your mortgage insurance premium (MIP) by refinancing your FHA loan with a streamline refinance. To apply for an FHA streamline refinance mortgage now, click APPLY NOW FOR A FHA STREAMLINE REFINANCE or contact me at 262-716-8151 or text us for a faster response. You can refinance your outstanding principal balance plus closing costs and the VA funding fee. This means that there is an unlimited loan-to-value limit; if you are underwater on your home it won’t matter because there is no appraisal required. You must be current on your FHA loan and have no late mortgage payments in the last six months. The primary purpose of the non-credit qualifying FHA streamline refinance is to provide a benefit to you with a new mortgage loan using limited approval documentation and no credit check. If you have an FHA loan and have more than a 20% equity stake in your property. There no appraisal is required, no credit is required, and no income is required. The non- credit qualifying streamline loan does not require a credit check, although, the lender. The one drawback of using an FHA streamline refinance is the closing costs, which can range between 2%-5% of the loan amount. The amount varies due to the size of the loan and the lender you use. This loan generally requires a benefit to the borrower in the form of: Getting out of an adjustable rate mortgage OR; FHA Streamline Refinance With No Income Check And No Credit – GCA – FHA Streamline Refinance With No Income Check. No loan-to-value limits (You can be underwater on your mortgage), Mortgage statement showing you are current and have made on-time payments for the last 6 months, Employer information (Employment may be verified, income will not), Bank statements showing you have funds to cover upfront costs, Utility bills in your name at the property address to show it’s your primary residence, Lower your mortgage rate and monthly payment. If you received your mortgage within the last 12 months, no late payments are permitted. Put Real Estate’s “Unfair Advantages” to Work for Your Portfolio 1. And yes! While FHA loans are a good option for lower down payments and less strict credit requirements this lenience can result in higher interest rates. And, with lenient credit standards and documentation requirements it can be the fastest and most cost effective options to refinance an FHA loan. An FHA streamline refinance saves the average FHA borrower between $150 to $250 on their monthly mortgage payments. That said, here are some of the current rates you can expect. The annual mortgage insurance premium (annual MIP) is equal to 0.85% of the loan amount, which you pay in monthly installments. Closing costs on a streamline refinance are between 2%-5% of the loan amount, depending on your credit score and the lender you choose. Because the FHA streamline refinance program doesn’t require a full credit check, it may be a good refinance option if you have bad credit. That said, some lenders don’t require a credit check for a Streamline Refinance. The MIP refund amount will depend on how long you have had your FHA mortgage. It’s called a streamline refinance because the process is streamlined, requiring less documentation than standard mortgages. Homeowners who got their FHA loan before 2015 are now able to take advantage of the new lower MIP fee, which was reduced from 1.25% to 0.85%. In some cases, people with FHA loans may need even better terms, and in those situations, the best option is to apply for an FHA Streamline refinance loan. Our staff at Gustan Cho Associates are available 7 days a week, including holidays, evenings, and weekends. Home purchase loans and refinance mortgage loans require income documentation, minimum credit score requirements, and asset and liability verification through bank statements and credit reports. – VA Streamline Loan is a No Credit Check Mortgage If you have a VA loan, the VA has a similar program as the FHA. The FHA streamline refinance is a great option for current FHA homeowners to lower their interest rate and monthly payment.