Jul
06
What is a “FHA Streamline Program”?
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Is there any catches to this loan. It states I don’t have to re-qualify, No credit check, and no appraisal. It will lower my a.p.r. Sounds pretty good.
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3 Comments
July 8th, 2009 at 5:28 am
have to have good credit, and i believe if memory serves me right you have to already have an fha loan. thats why they call it streamline, so if you already have an fha loan and your debt structure works go for it.
if it does not lower the interest rate by 1% or more its not worth doing, apr is not the biggy interest rate and monthly payment are. apr is a hypotheical govt working based on actual money you have access to and does not count title cost, broker fees, and pts.
no catch to the program other than you must already be in an fha loan i think
July 8th, 2009 at 6:56 pm
You must have a current FHA mortgage and have been on time with payments for the last 12 months. The other poster mentioned the 1% rule. I would agree with that. The best way to know if a loan will work for you is this.
Take the closing costs, which should only be about $2-$3K and divide them by the savings from the new loan per month. Then say it is 30 months to get to the break even point. If you plan on owning the home that long, it makes sense.
If not, then don’t. FHA rates are really great right now. If you have an FHA mortgage, especially an ARM, look into it. I would call Countrywide or Ditech.
Do not got to a internet site like Lendingtree.com.
July 9th, 2009 at 1:01 pm
FHA loans are always a great option, streamline means they will get it done with less documentation then when you originally recieved your FHA loan. Credit will still be checked.