FHA Streamline Refinance Guidelines for 2010 for California will be new to some, but old to others. Under today’s FHA streamline refinance guidelines, homeowners with FHA loans have the ability to lower their monthly payment when FHA mortgage rates are reduced. Guidelines today allow homeowners to refinance without an appraisal or verify income and assets all with incredibly fast turnaround times. Even homeowners with no employment or lower credit scores can be eligible.
What’s Changing with FHA Streamline Refinances in 2010?
A letter from HUD on September 18, 2009 listed the guidelines for 2010 FHA Streamline Refinances, effective on January 1, 2010. The biggest changes to the guidelines are:
- The maximum mortgage amount for streamline refi’s without an appraisal cannot exceed the current principal balance and the new up-front mortgage insurance premium
- Homeowners must have a full appraisal completed in order to add-in closing costs
- For streamline refinances with an appraisal, discount points (buying down interest rate) can no longer be rolled into the new mortgage
- Homeowners must be employed when they submit their FHA streamline refinance loan application
- Homeowners must verify assets that are needed for closing
2009 vs. 2010 FHA Streamline Refinance
| 2009 Streamline | 2010 Streamline |
|---|---|
| No appraisal No maximum loan to value No asset verification No income verification Low credit scores eligible Quick closings |
Appraisal is recommended Max loan to value to 97.75% Assets verified Income verified Higher credit scores required No quick closings |
What Does this Mean to a California Homeowner with a FHA Mortgage?
If you currently have a FHA loan, you need to determine your eligibility and whether this is beneficial to you prior to the new guidelines taking affect. Call 951-506-4663 to schedule your FREE strategy session or email jonas@jonasloans.com.
How Do I Determine the Benefit of a FHA Streamline Refinance?
With some basic information about your FHA loan, we’ll help you determine the net benefit from a 2009 FHA Streamline Refinance. Enter your information on our Secure Loan Application.
{ 2 comments… read them below or add one }
Jonas
Do you have an opinion on this? It seems that ths is a small step that is much needed to help the real estate market in California. The next move needs to be the re-introduction of stated income programs (with stipulations) OR the ability for self employed borrowers to use income that is closer to gross rather than the net referenced on their tax returns.
Your thoughts?
EricJ
http://www.dreamhomefinancing.com
EricJ,
FHA streamline refinances were/are pretty simple. It seems that a few people out there (maybe more) took advantage of the simplicity and now that program too is headed for more regulatory stipulations. To bring back stated income loans seems to be going back a step or two even with stipulations. I’m torn. Maybe certain lenders that have the ability to portfolio some of these programs will come out with it eventually. Let’s face it, we’re Americans, we’re going to make the same mistake over and over again. Let’s just hope it’s not as ridiculous as before.
My self employed clients would like to see some relief and it would be nice to offer a specific, strict program for them that genuinely helps versus a band-aid loan. It seems like once we have new regulations, the ones that are still standing like you and me will find a new path around the obstacle. Lenders seem to work in the same way. They too will find a way to remain standing. Look at Jumbo Loans for instance, they’ve come back in a big way.
Have Faith,
Jonas