Do You Have An FHA Adjustable Fee Mortgage?
Do you have an FHA adjustable rate mortgage also known as an FHA ARM loan? Has your introductory price expired soon? It can be a very good idea to look into your refinancing options to avoid the higher interest rates.
Adjustable rate home loan borrowers rightly get a little nervous when the end of their introductory interest rate, also known as the “teaser rate” period, approaches and the first rate adjustment on the ARM loan comes due.
Borrowers can negotiate an introductory rate with the lender that lasts as little as a year and up to ten years, but at some point that initial rate ends and the first adjustment is due.
If you have an FHA ARM loan, you may be eligible for a Streamline Refinance Qualifying Loan or a Streamline Non-Qualifying FHA Streamline Refi. In many cases, FHA streamline loans are available to the borrower without the FHA credit check and in other situations the credit check may be required. In both cases, the FHA loan rules apply.
Non-Credit Qualifying FHA Refinance Loan Optimization
HUD 4000.1 instructs the lender: “The borrower must have made all mortgage payments for all mortgages on the property in question within the month due for the six months prior to the assignment of the case number and no more than a 30-day delay in payment in the last six months have months for all real estate mortgages. ”
In addition, the borrower is required to make payments for “all mortgages secured by the property in question within the month due for the month prior to the mortgage payment. “
Refinance Loan Qualifying FHA Optimization
The FHA loan rules in HUD 4000.1 state: “For all mortgages on any property with a mortgage payment history of less than six months, the borrower must have made all payments within the month due.
For all mortgages on all properties with a mortgage payment history of more than six months, the borrower must have made all mortgage payments within the month due for the six months prior to the assignment of the case number and no more than a 30-day late payment for the past six months. “
In addition, the borrower must have made payments “for all mortgages secured by the property within the month due for the month prior to the mortgage disbursement”.
Ask a loan officer how an FHA streamline refinance can help in cases where the borrower needs to avoid the new interest rate adjustment or refinance to a fixed-rate mortgage shortly afterwards. You will be glad you did, even if you decide to wait to refinance the loan.