Florida FHA home loan applications and mortgage rate shoppers be on the lookout for a rules update from the FHA.
Starting November 17, 2009, the FHA will make it more difficult to qualify for its popular Streamline Refinance program.
Available only to homeowners who currently have FHA home loans, the streamline program helps reduce mortgage payments with little paperwork and few if any out of pocket borrower costs.
As such, the program does have a few “must meet” minimum eligibility requirements.
What’s so great about Streamline Refinance? A lot. See, the FHA Streamline Refinance is notable for what it doesn’t require from applicants.
- There’s no income verification
- There’s no asset verification
- There’s no employment verification
- There’s no appraisal required
In the past, qualifying borrowers just needed to meet a minimum credit score, have been current on your last 12 months of mortgage payments, and have a new loan amount that doesn’t exceed the original balance of your old loan.
The new program guidelines, however, are much stricter.
Effective November 17, 2009 – new requirements go into effect – including those requiring that applicants show evidence of employment and income, plus proof that they have any cash required at closing.
Furthermore, homeowners can’t finance closing costs into the mortgage without a complete home appraisal. This requirement is HUGE… in that for areas of declining value, refinancing with the FHA may be impossible.
So, if you’re a homeowner with an FHA mortgage, contact me before the November 17 deadline to explore your Streamline Refinance options. Mortgage rates are low and you never know for what you’ll qualify.
The worst thing you can do is to wait too long to find out. Once the deadline passes, the old guidelines will be history.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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How can I find a mortgage broker within Florida that deals with FHA construction or rehab loans?
I desire to make an offer on a property in Florida but would like to be pre-qualified first. It has a mobile home on it and I don’t understand if I will need a construction loan or rehab loan? What’s the best way for me to proceed?
Less strict should be carried forward so that we can all move forward within this terrible financial climate that we have hit in 2009. Let’s hope that 2010 is a more positive year…:D
Hi, and thanks for the Florida FHA Loans updates. This is really such a nice post for the loan related topics and a great resource for the information. Anyways keep it up and keep going on.