Real Estate refinances using FHA insured loans are generally restricted to two basic mortgage loan types. Regular FHA and their “Streamline” loan program.
To qualify for an FHA mortgage you must be of legal age, you must be a citizen or a legal resident and you must have a social security card.
If you’re not a U.S. citizen you will have to document your residency status, either as a legal permanent resident or as a non-permanent resident alien.
The streamline loan requires less documentation so it is much faster. Under this program, your credit history and your income and employment need not be verified. However,
Because of the lack of credit and income history, the program does have some restrictions.
The qualifications you must meet before you can apply for a streamline loan are as follows:
A- Your current mortgage must be a Fha insured loan.
B- You’ve been making payments on your current loan for at least six months.
C- All your payments are up to date on your current mortgage loan.
D- The new loan will lower your rate of interest and your monthly payment.
E- You are not seeking to receive any cashback or to consolidate any other bills.
You can, however, include excess funding to rehab or remodel your home up to $15,000 but this can not include any structural rehabbing.
If you want to get some cashback or consolidate some of your bills or currently have a sub-prime or conventional loan you will be held to the requirements of the basic real estate refinance
the loan with FHA worksheet:
A- Has it been at least two years since any bankruptcy has been released?
B- Has it been at least three years since you’ve been in foreclosure?
C- Are payments on your student loan current?
D- Are there any judgments against you, outstanding?
E- Is your home loan payments up to date?
F- How many times has your mortgage payment been late in the last two years?
G- Excluding your student loan and mortgage payment, list all loans that are currently late or that have been over thirty days late frequently during the last two years.
H- Total amount of your monthly household income. Include yours, your spouses, alimony, child support, etc.
I- List all of your monthly payments. On credit cards list the minimum monthly payment.
J- Estimate the number of funds you have in bank accounts, checking accounts, retirement fund contributions, etc.
I know this seems like an awful lot of information but, really it’s not. Once you get all your data together it’s not so bad. A lot of lenders use a pretty fast pre-
Qualifying rate quote form that you can go through in 2 or 3 minutes And I can’t strongly enough advise you to take advantage of those quick quote forms and get rate quotes
From multiple lenders BEFORE you decide which lender to use. This can save you thousands of dollars over the life of your real estate refinance loan.