New FHA upfront mip and monthly mortgage insurance premiums go into effect today on all new fha streamline refinances where the borrowers original endorsement date from HUD was on or before 5/31/2009. HUD has temporarily reduced its fees so that home owners who originally closed on an FHA loan on or before 5/31/09 can refinance into a lower fha streamline refinance loan. You see over the last several years HUD keeps raising it’s upfront mip and its monthly mortgage insurance premium rates. Even though, borrowers can refinance into a lower rate and reduce their principal and interest payments their monthly mortgage insurance premiums would rise. Lately, with the increase in monthly mortgage insurance borrowers have not been able to refinance since there is no cost savings. We can do an fha streamline refinance for borrowers with a middle fico score as low as 600. We can also do an fha streamline refinance for borrower who have a lower fico score but you will need to expect to pay a higher interest rate. We even have a lender who will refinance your fha streamline loan even if you have had one late payment within the last twelve months. However, you are only allowed one late payment. Here’s the catch. Since you have had a late on a government loan, you are now categorized as a higher risk borrower. Therefore, this particular lender charges higher fha rates and higher bank fees. So be prepared to pay a little more for your late payment. You will be required to provide a copy of your original note which is a three page document. You do not have to turn in W-2’s, tax returns, or paystubs. You will be required to provide a bank statement to show you have the ability to make future payments.
Here’s a short little video about the fha streamline refinance program:
For more information go to our Fha home page at http://azwm.com/arizona-fha-loan.html and click on contact us.