The Federal Housing Administration offers a lot of financial services that alleviate some of the pressure that the current financial state of the nation exerts. The FHA streamline refinance option presents a specifically helpful program. Best suited for individuals who have been prompt with their mortgage payments and have built a considerably large equity on their houses, the process is fast and allows you to trim down on your monthly payments. It is called streamlined because the FHA streamline refinance program gets rid of a lot of documents and underwriting that the lender needs to accomplish, thus making the whole process as fast and as cost-effective as possible.
There are a few things you need to consider though as they are requirements before you can apply for this. First, make sure you have FHA insurance on your mortgage, not one you are just going to ensure when you start the process. Delinquent mortgages are not eligible for refinancing so you might want to get yours current first, if it is not. You must have been the owner for the property for a minimum of six months. Also make certain that your lender is FHA-approved. Seriously think about this as this can offer you just the right solution for today’s financial woes. Review your documentation and talk with your lender regarding the possibility of an FHA streamline refinance program that works for you so that you can allocate more of your monthly income to more pressing financial needs.
Depending on what you’re looking to accomplish, conventional financing might be more attractive to Florida residents compared to an FHA loan. At the present time MI companies are insuring Conventional loans in Florida up to 95% LTV, but the property type must be a Detached Single Family house and it must be used as the owners primary residence. There are additional restrictions such as minimum credit score and maximum debt to income ratios, only to name a few. With FHA loans borrowers can get up to 96.5% LTV; again must be used as the owners primary residence, but the difference is you can have a lower credit score and qualify with higher debt to income ratios.
Even though FHA is more flexible, it’s also more costly. FHA loans typically require an upfront Mortgage Insurance Premium (MIP), which is currently 2.25% of the new loan amount. This additional expense needs to be taken into consideration when determining what’s the best mortgage product for you.