Is My New Jersey Loan Eligible For
Refinancing Under The FHA Streamline Program?
The FHA Streamline Program Offers Great Savings & Easy Qualifying for New Jersey Homeowners. But, before you can reap the benefits of this program, you must determine if you are even eligible.
New FHA Streamline Eligibility Requirements
1. Must Currently Have an FHA Insured Loan
 You must currently have a mortgage loan insured by the Federal Housing Administration (FHA). If you aren’t sure if yours is, check your original loan paperwork and monthly mortgage statement. VA and USDA loans are not eligible.
If your loan is not an FHA Loan you may still qualify for another form of refinancing. You can check out other refinancing options here.
2. Have Not Refinanced Your New Jersey Loan Within the Previous 6 Months
To avoid the constant churning of loans, the FHA has a policy of demanding a mandatory 6 month waiting period between refinances. If you have refinanced in the last 6 months you could still be eligible for the new FHA streamline program once this time period has elapsed, so feel free to contact us at 908-221-0304 Ext. 305 to get a quote and begin preparing your refinance loan application.
3. You Must Realize Tangible Benefit From Refinancing Your New Jersey FHA Loan
This provision ensures that New Jersey mortgage loan borrowers receive real benefit from refinancing. The guidelines call for a minimum payment savings of 5%, though most borrowers see much larger savings. It all depends on your current payment and rate.
Additionally, there are allowable exceptions when there are other important benefits realized, for example converting from an ARM (adjustable rate mortgage) to a fixed rate, or changing terms of fixed rate mortgages which result in real savings.
4. No Late Mortgage Payments in the Last 12 Months
In order to be eligible for the FHA streamline refinance program New Jersey borrowers cannot have any 30, 60 or 90 day late mortgage payments within the preceding 12 months if the loan is less than 12 months old. If it is more than 12 months old you are allowed to have one 30 day late in the last 12 months as long as there are no late payments in the last 3 months. The loan also must be current and up to date at the time of closing on the refinance. While the FHA itself has no other credit score requirements, individual mortgage lenders can overlay their own criteria. Many will ask for a 640 credit score, but we work with a variety of lenders some who will do loans down to a 580 middle score.
If you have credit issues, please call our office at 908-221-0304 Ext. 305. We will guide you in selecting the best credit repair option for your situation. You’ll get sound advice and a personalized plan designed to help you raise your credit score in the shortest amount of time so you can get approved for your FHA Streamline loan.
5. Loan-to-Value
No appraisals are required to qualify for FHA streamline home loans making them perfect for underwater New Jersey homeowners and reducing the costs and time frame normally associated with refinancing. So even if you owe twice what your home is worth you could still refinance with this program.
6. Income & Employment Verification
Again the FHA, who insures FHA streamline refinances in New Jersey, does NOT require income verification or calculate debt to income ratios BUT 95% of individual lenders do. However, many of our lenders have relaxed their limits on these types of mortgage loans.
7. Property Types
New FHA streamline refinances can be used to refinance and lower interest rates and mortgage payments for owner occupied residences New Jersey.
Give us a call at 908-221-0304 Ext. 305 for Second Home and Investment Property Refinance Options.
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