Last week we discussed the drastic spike in the volume of mortgage applications being processed and this week we are going to go over some of the refinance programs that are available. As the number of mortgage applications keeps increasing, so does the demand for the "best mortgage program". What makes a mortgage program hot these days?
Reduced-documentation mortgage refinance programs. There has been high demand for programs like the VA Streamline Refinance program and the HARP 2 Program due to the appeal of the "no appraisal" offers. Basically it boils down to, the less hassle the refinance is, the more appealing it is today to homeowners.
In the past, mortgage refinance has gotten a bad rap and has been associated with a paperwork-laden headache. Well, those days are behind us now. Refinancing hasn't been this easy in years. Regardless of your reasoning for wanting to refinance, whether it be to take advantage of lower interest rates, "cash out" to get some extra bills caught up, or to simply lower your monthly mortgage payment; there are some great refinance programs going on right now.
Popular streamline mortgage refinance programs today are the FHA Streamline Refinance, the VA Streamline Refinance , and the USDA Streamline Refinance. However, the USDA Streamline is not yet applicable to Wisconsin homeowners, so we will leave that one out for today's discussion.
Here are some facts about both the FHA and the VA Streamline Refinance Programs.
FHA Streamline Refinance
This program is a refinance option available to homeowners who currently have FHA-insured mortgages. The FHA Streamline Refinance can be for homeowner's primary homes, vacation homes, or investment properties.
To be eligible for the FHA Streamline Refinance:
Your current mortgage must be at least 210 days old
There must be a Net Tangible Benefit to the refinance. In other words, the refinance must have a "purpose".
No late payments in the prior 3 months in your mortgage payment history.
What makes it "Streamlined"?
This guidelines for this program state that there are no employment checks, no appraisals, no income or asset verification, and no credit checks necessary for approval.
VA Streamline Refinance: Interest Rate Reduction Refinance Loan (IRRRL)
This program is available to homeowners who have VA-backed mortgages. The Interest Rate Reduction Refinance Loan (IRRRL) is, of course, backed by the Department of Veterans Affairs.
One very noteworthy perk about this program is that mortgage insurance is not required for the VA IRRRL; regardless of loan-to-value.
To be eligible for the VA Streamline Refinance IRRRL:
Homeowners must provide verification that they did previously occupy the home
The mortgage payment must be reduced via the refinance. The only exception to this is for homeowners with ARM-to-Fixed Rate refinances
No more than one late mortgage payment in the last 12 months
What makes it "Streamlined"?
The VA Streamline Refinance guidelines state that income, assets and credit should not be verified; nor should employment. Also, in most cases, home appraisals are not required.
Our knowledgeable Mortgage Lenders are more than happy to help you in finding the perfect mortgage refinance fit! Contact us here at Lendem Financial & Co and we can help provide you with the information you need to make your decision. Lendem Financial & Co specializes in mortgage lending and mortgage refinancing and we can gladly answer any questions you may have.
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