With your cooperation, we GUARANTEE to have final loan documents in your hands within 14 Days! Congratulations this is the first step to taking advantage of the lowest interest rates of our lifetime! Simply click the GO! button on the right to get this train moving!

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Frequently Asked Questions Regarding Streamline FHA Refinance

What is the "FHA Streamlined Refinance Program"?

How Can Streamline Mortgage Offer a No-Borrower-Paid-Cost Refinance?

What Does FHA Think About Streamline Process?

What Is Seasoning?

I Have Owned My Home for Less Than a Year, Can I Refinance?

What Is A Net Tangible Benefit?     

With This Re-Finance Is There a New Verification Of Income and Employment?

What Credit Score is Needed For This Streamline Refinance?

Can I Skip Next Months Payment?

Is A New Appraisal Required?

Is There A Prepayment Penalty?

Is My FHA loan Assumable?

How Do I Proceed?

What Documents Must I Provide?

Will Rates Go Down Or Up?

How Do I Cancel My FHA Mortgage Insurance?

Am I Eligible To Refinance?

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What is the "FHA Streamlined Refinance Program"?

The FHA Streamline Program is designed to lower the monthly principal and interest payments on a currently HUD-insured mortgage and must involve no cash back to the borrower.

How Can Streamline Mortgage Offer a No-Borrower-Paid-Cost Refinance?

Your existing lender services your FHA loan, they do not own the loan; - they service it for the investor. Loan servicers are really just a bookkeeper for you and the investor. Servicers receive a monthly fee for keeping the books. They receive approximately 3/8% monthly for depositing your twelve checks each year, paying your taxes and your hazard insurance and properly applying your payments against your loan. This servicing fee is very profitable and desirable. When your loan transfers from the originator to the loan servicer a fee is paid that is called the “SERVICE RELEASE PREMIUM (SRP)”. We pay the escrow, title insurance, and all other third party expenses in your transaction. We offer our loans to the public using a "Wholesale to the Public" pricing policy. We deal in tremendous volume using technology to keep our internal costs to a minimum and then pass along our savings to our customers. We are willing to compete for your business and believe our fees are the lowest in the industry. We are a privately owned California corporation headquartered in the City of Tustin located in Orange County. Since we were formed in 1999 we have closed over 16,494 FHA loans in California for over $2,714,080,334.

What Does FHA Think About Streamline Process?

FHA invented the streamline process and encourages homeowners to take advantage of it whenever possible. FHA is like any insurance company; whenever they can reduce the risk they will make more money. FHA insures the loan for the benefit of the investor who owns your loan.  The streamline rate reduction program benefits the homeowner by reducing their monthly payments and interest paid. Your loan terms remain the same; it is still assumable and there is no prepayment penalty with any FHA loan.  Whenever interest rates come down you can take advantage of this program- and yes you can streamline as many times as the market will allow.

What is Seasoning?

It is FHA’s rule that at the time of loan application, the borrower must have made at least 6 payments (211 days) before they may refinance.

I Have Owned my Home for Less Than a Year, Can I Refinance?

Yes, for mortgages with less than 12 months payment history, the borrower must have made all mortgage payments within the month due. You are eligible after you have made six months payments and 211 days have passed from the date that you purchased.

What is a Net Tangible Benefit?     

The New Principle & Interest + Monthly Mortgage Insurance must be at least 5 percent lower than existing Principle + Monthly Mortgage Insurance being refinanced.

With This Re-Finance is There a New Verification of Income and Employment?

Yes, the new Lender must certify that the borrower is employed and has income at the time of application.

What Credit Score is Needed for This Streamline Refinance?

The Investors behind your new loan have imposed minimum credit scores of 660 and may soon increase them. A Lender must also enter all available borrower credit scores into FHA Connection (FHA’s System).

Can I Skip Next Months Payment?

Yes. FHA allows borrowers to include 30 days interest due on their existing loan into the principal balance of the new loan. The first payment on the new loan will not be due for thirty days after the close of escrow.

Is a New Appraisal Required?

No. Under this FHA Streamline Program no New Appraisal is required.

Is there a PREPAYMENT PENALTY?

No. FHA loans never have a prepayment penalty.

Is my FHA loan Assumable?

Yes FHA loans are Assumable to a Qualified Borrower. This means in the future should you decide to sell your home, a prospective buyer could assume your remaining term and existing interest rate. In the event interest rates rise and the economy is better, this low rate could help your home sell faster and potentially for more money. 

How do I proceed?
You need to locate your existing loan number and contact our office.  A loan officer will answer all of your questions they will e-mail, fax or express the Good Faith Estimate to you that same day.  After you have received and reviewed your Good Faith, the loan officer will need a few minutes to complete the Initial Application over the phone. You will then schedule with your loan officer the date and time to sign your final loan documents in your home.  From your first call to formal approval with loan documents should be within 14 business days!

What Documents Must I Provide?

You must provide a copy of Government Identification for each borrower on the existing loan (Ex. Drivers License, Passport, Green Card). You must also provide a copy of the Social Security Card(s) for each borrower on the loan.

Will Rates Go Down Or Up?

You never know where the bottom is until you miss it.” If you are reducing your principal and interest with little or no cost. Why wait ? If you do have costs in the transaction be sure that you can completely recover the cost in a reasonable timeframe. Most advisors state that all costs should be recovered within two years. The sooner that you can recover the costs, the better.

How do I Cancel My FHA Mortgage Insurance?

The FHA insurance payments include two parts: the upfront mortgage insurance premium (UFMIP) and the annual premium remitted on a monthly basis – the mutual mortgage insurance (MMI). The UFMIP is an obligatory payment, which can either be made in cash at closing or financed into the loan, so that you really pay it over the life of the loan. It adds a certain amount to your monthly payments, but this is not PMI, nor is it the MMI. When a homeowner purchases a home utilizing an FHA loan, they will pay monthly mortgage insurance for a period of five years or until the loan is paid down to 78% of the appraised value – whichever comes later. The MMI premiums come on top of that for all FHA Purchase Money Mortgages, Full-Qualifying Refinances, and Streamline Refinances.

When we talk about canceling the FHA insurance, we talk only about the MMI part of it. Unlike other forms of conventional financed mortgage insurance, the UFMIP on an FHA loan is prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the UFMIP paid at loan inception. If you have financed the UFMIP into the loan, you cannot cancel this part. The insurance premiums on a 30-year FHA loan must have been paid for at least 5 years. The MMI premium gets terminated automatically once the unpaid principal balance, excluding the upfront premium, reaches 78% of the lower of the initial sales price or appraised value.

A 15-year FHA mortgage annual insurance premium will be cancelled at 78% loan-to-value ratio regardless of how long the premiums have been paid. The FHA’s 78% is based on the initial amortization schedule, and does not take any extra payments or new appraisals into account. This is the big difference between PMI and FHA insurance: the termination of FHA premiums can hardly be accelerated.

Borrowers who do make additional payments towards an FHA mortgage principal, may take the initiative through their lender to have the insurance terminated using the 78% rule, but not sooner than after 5 years of regular payments for 30-year loans. PMI termination, however, can be accelerated through extra payments or a new appraisal if the house has appreciated in value.

Am I Eligible to Refinance?
A: Easy! When did your purchase transaction record?

Please identify the Month Date Range bellow:

I closed 8 Months or More Ago!	---------	Congratulations you are eligible!
January 1st-15th	---------	Eligible in August!
January 16th-31st	---------	Eligible in September!
February 1st-15th	---------	Eligible in September!
February 16th-28th	---------	Eligible in October!
March 1st-15th	---------	Eligible in October!
March 16th-31st	---------	Eligible in November!
April 1st-15th	---------	Eligible in November!
April 16th-30th	---------	Eligible in December!
May 1st-15th	---------	Eligible in December!
May 16th-31st	---------	Eligible in January!
June 1st-15th	---------	Eligible in January!
June 16th -30th	---------	Eligible in February!
July 1st-15th	---------	Eligible in February!
July 16th-31st	---------	Eligible in March!
August 1st-15th	---------	Eligible in March!
August 16th-31st	---------	Eligible in April!
September 1st-15th	---------	Eligible in April!
September 16th-30th	---------	Eligible in May!
October 1st-15th	---------	Eligible in May!
October 16th-31st	---------	Eligible in June!
November 1st-15th	---------	Eligible in June!
November 16th-30th	---------	Eligible in July!
December 1st-15th	---------	Eligible in July!
December 16th-31st	---------	Eligible in August!