Fha Streamline Refinance Mortgage Gets New Set Of Rules In Wisconsin

Many Madison Wisconsin residents have taken advantage of Federal Housing Authority

insured loans in the past or they are looking to use one of these programs to purchase a new home or refinance an existing one. FHA programs continue to be extremely popular options and can be great money savers if the particulars of the program match the needs of the home buyers.

Some of the FHA financing rules have been changed to clarify some areas that were confusing or being misused. Many homeowners who were current FHA loan program participants enrolled with the intention of turning around after a very short time and using the Streamline refinance program to get a better rate even if their credit was not the best. Some credit seekers procure an FHA insured mortgage loan fully intending to refi it in the future using a Federal Housing Administration Streamline Refinancing mortgage. The accessibility of all these refinancing choices are why a lot of applicants may be enticed to go with an ARM (Adjustable Rate Mortgage) plan thinking they can opt out of it before the rate is slated to bump up. While this was doable in the past, now the FHA has set forth some new rules that require a grace period of sorts before the original loan can refinanced.

What are the new FHA Mortgage Refinance requirements?

1) There is now a minimum amount of time the homeowner must actually own the FHA financed property before a refinance application can be submitted. At the time of this article that time period is not less than six calendar months.

2) The Brand New limitations additionally include the requirement that at least 210 days have passed after the closing date of the bank loan being remortgaged

3) The loan provider should always assess that there's a net concrete benefit to the borrower because of the streamline refinance purchase, with or without having an value determination. This can be a) A 5% decrease to the principal and interest (P&I) of the mortgage payment and also the yearly mortgage insurance premium (MIP) or b) Refinancing from an Adjustable Rate Mortgage (ARM) to a secured rate house loan. (Click Here for more info)

In spite of these brand new restrictions adopted by the Federal Housing Authority, the Streamline Refinance Mortgage remains a great method for existing homeowners who are tied into a FHA loan with a adjustable rate which is due to increase in the not too distant to future, or those who just choose to take advantage of present day super low rates.

In the Madison, WI area FHA loans have been increasing in popularity and many home owners are now deciding to refinance using this streamline program. FHA mortgage rates in Madison, Wisconsin vary. It's a great program but may not be your best choice depending on your credit, financial situation and other factors. This is where speaking with an approved lender with lots of FHA loan experience becomes crucial.

At wisconsinmortgagefha.com you can speak with a local Badger State lender well versed in how the FHA system works and whether or not it is your best choice.

This article was originally posted at wisconsinmortgagefha.com

by: Lacy Duff

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