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complete 2020 fha streamline &

cash-out guide

Benefit #1

lower your payment

BENEFIT #2

skip up to 2 payments

BENEFIT #3

no appraisal

BENEFIT #4

no cost transaction

BENEFIT #5

reduced paperwork

 

BENEFIT #6

up to 85% cash-out

346,700+

fha loans eligible for the streamline. Know as soon as rates drop.

WHY CHOOSE SERVICE 1st MORTGAGE FOR YOUR STREAMLINE?

At Service 1st Mortgage we offer a NO COST REFINANCE for you.  We will search high and low for a lender that will give you the best deal out there and get you approved.  

1

No Lender Costs

You don’t pay us anything to refinance your home.

2

No Income Verification

That’s right! Skip the W-2’s and tax transcripts.  We only check to see that you’re employed, not how much you make.

3

No Money Our of Pocket

It’s the truth!  You’ll never write a check to get your loan closed, just receive the benefits!

rates are super low.  get yours.

why do interest rates keep changing?

FHA mortgage rates vary lender by lender, taking into account many economic factors.  While the exact rate you get depends on things like your credit score, amount borrower and how low of a rate you want to get, the big 4 factors are outside of yours and our control.

01 The overall state of the economy

 

02 Investor demand in the stock market

 

03 Federal Reserve policies and rate hikes

 

04 The 10-Year Treasury bond yield

  

05 Banks’ desire to lend

FHA Loan Rates

While this is a government backed and insured loan, interest rates are not set by the government.  They change on a daily and weekly basis depending on financial markets.

FHA lenders set and quote their own interest rates.  The rates offered will vary depending on the mortgage lender, the type of FHA loan, your credit score and other factors. 

The great part about FHA rates is that they tend to be lower than conventional interest rates simply because lenders have more protection through the backing of the government.

Mortgage rates are historically low as we come into 2020 compared to the last 30 years.  Many homeowners find that current rates are below the rate of their current loans, making it a sound financial decision to refinance.

FHA mortgage holders also have an option outside of the streamline.  You may be able to remove the mortgage insurance all together, reducing your monthly payment even further.

Service 1st Mortgage is a pro at government insured loan refinance options.  We can help asses your situation and explain all of your options.

 

How does it work?

The FHA streamline program is much easier to qualify and complete than the original purchase process.  Meet the short list of requirements and you’re on your way!

1. On-time payments.  If your mortgage is less than 12 months old, all your payments must have been paid on time.  If you’ve have your mortgage for over 12+ months, you can have 1 late payment and must be current for the last 6.

2. Net Tangible Benefit (NTB).  Going through the FHA streamline has to get you at least a 0.5% reduction in your rate as well as reduce your monthly payment.  If you’re in an adjustable rate and go to a fixed rate, that counts as well.

3. FHA Seasoning.  There’s a waiting period before you can streamline, so if you just closed, you’ll have to wait.  Once 210 days have passed since the day your mortgage closed, you’re eligible for the streamline.

4. Credit Score.  The FHA doesn’t require a credit report, but the lenders do.  This is to check for your middle score and for any late payments.  As long as your scores are around 550+, you’re eligible.

FHA Loan types, mip & appraisals

Service 1st Mortgage makes streamline refinances easy to apply for and get approved.  However, there are some details you don’t want to miss.

If you’re in a fixed rate FHA loan, you can streamline into a lower rate or and ARM, but you can’t drop to a shorter term.  Plus, we don’t even recommend that.  Instead, you can take your existing ARM into a fixed rate, or drop an adjustable rate to a lower one, as long as you drop 2% or more.

Skip the appraisal on your Streamline, unless you want to get some cash out as well.  Most people opt for the no-appraisal option because the application process is quicker, cheaper and no equity is required. 

All FHA loans have an upfront government fee or 1.75%, plus annual fees that are charged every month.  If you have equity in your home, we can help you get rid of all that mortgage insurance premiums.

Do you have to pay up front insurance again when you refi?  In short, yes, but you get a refund for what you paid at the start.  The amount of your refund drops every month, so refinancing early in your loan gets you the biggest refund.

What paperwork do i need to streamline?

Lenders and the FHA make it super easy to go through the process.  What makes it a streamline is the reduced amount of paperwork required from you.

1. Current mortgage statement

2. Current FHA loan mortgage NOTE

3. Closing Disclosure for your current loan

4. You employer’s HR number to verify employment (we never check income)

5. Homeowners insurance information

6. IDs and SS cards for anyone on the loan

7. Utility bill showing that you get service at the same place where you get mail.

HOW DOES IT ALL WORK?

Pick the Right Program

Speak with our team or get a rate quote online for your home loan.

Step 1

Meet with a Notary

Sign off on an application and provide a short list of documentation.

Step 2

Review and Approval

Our team handles all the work and gives you regular updates.

Step 3

Closing and Funding

We'll tie up and loose ends and get your loan Clear to Close!

Step 4

FAQ

I got my FHA mortgage less than a year ago. Am I eligible?

Yes! Once you’ve completed the FHA seasoning requirement of 6 payments on your FHA loan, you’re eligible for the streamline rate reduction.

Why is FHA Streamline Refinance a popular mortgage product?

FHA streamline refinance is a popular mortgage product because it requires less paperwork. This program doesn’t require an income verification or a re-appraisal on the property. It allows you to reduce the interest rate on your current home loan. FHA Streamlined Refinance cuts down on the amount of paperwork required.

I've been late on my payment. Do I qualify?

FHA requires that if your loan is less than 12 months old, you cannot have any late payments.  If you got your loan more than 12 months ago, you can have 1 late payment but not within the last 6 months.

Is the FHA Streamline really $0 cost?

The FHA has a mathematical equation that sets your new maximum loan amount when you close on the Streamline.  The lender you go with has to give you enough credit back to you to cover all the costs, since they cannot be added to your mortgage.  Contact one of our loan officers to find out how much credit back you qualify for.

Can I get cash back with the streamline?

It’s not a cash-out refinance. FHA streamline guidelines limit borrowers to no more than $500 in cash from the refinance. That wiggle room is there to accommodate changes that might be made at closing.

How do I know I'm getting a good deal?

The FHA demands that you get a good deal.  The streamline refinance must result in a “net tangible benefit” to the borrower. That means the FHA is looking for you to reduce your term or lower your mortgage interest rate — or both.

Can I do an FHA Streamline twice?
Yes, you can use the FHA Streamline Refinance more than once. You just need to meet FHA’s guidelines — meaning it’s been at least 210 days since your last refinance, you’ve made your last 6 payments on time, and you can lower your rate at least 0.50%.

 

Have other questions?

Drop us a message!

Contact
y

(202) 713-1708

alexk@service1stmortgage.com

rates are super low.  get yours.