FHA Streamline Refinance

Does FHA Finance *True* Town Homes?

A common question about purchasing a town home with an FHA mortgage - home loan.

Many towns and cities today have true “town homes” where the building is mixed use. This particular home in downtown Smyrna, Georgia even has a little tomato garden on the upper deck and a shop on the ground floor. FHA has the solution for these properties up to the county limit. So what’s available outside of the county limit?

The answer really depends on the zoning for the property and what is available by lender in the local area. Currently FHA will approve loans up to 96.5% of the sales price with the loan amount not exceeding the county limit for the county where the property is located. To know for sure if an FHA home loan can be used on your property be sure to contact your FHA home loan expert before making an offer on the property.

Since each property may have a different type of business located on the first floor there “can” be issues affecting the type of loan you get and whether or not an FHA home loan is available on that particular property. Again, always contact your local FHA home loan expert to get the best answers for your individual needs.

Do I Qualify For an FHA Streamline?

Ask yourself 2 questions:

Do I have a job that will continue into the indefinite future?

Am I current with my mortgage payments?

If you answered yes to those two questions it is highly possible you qualify for an FHA streamline refinance. Of course you must have an existing FHA home loan, too.

This type of refinance was developed about 25 years ago when interest rates were coming down out of the high double digits in an effort to allow them to refinance to a new lower rate without all of the qualifications required for a standard FHA home loan. The reason it is called a streamline refinance is because, as a general rule, it does not require nearly as many points of qualification.

FHA Streamline Underwriting Times

FHA Streamline underwriting turn times are back up to about 8 business days due to the massive volume in applications with these lower FHA streamline mortgage rates.

You can always call for an update to underwriting times. Rates can be locked with a preliminary underwriting decision.

Georgia FHA Streamline Closing Times

Georgia FHA Streamline Refinance closing times are down to about 6 days from application to clear to close. This can vary from 4 days up to about 8 days (these are business days not calendar days).We do still have an FHA streamline option requiring no credit check unlike most other lenders. You MUST be employed, living in the home, have had an FHA loan for at least 6 months and be current with your mortgage payments.

This announcement is effective for March 26, 2009.

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FHA Streamline Rates are Down 3/19/09

In Georgia and Florida the FHA streamline refinance rates are down as much as 1/2 of a point over yesterday’s rates. Qualification for existing FHA streamline refinance in Georgia and Florida is pretty straight forward.