Any chance the FHA moves the cutoff date ahead for loans endorsed after May 31, 2009?

I talked to a mortgage broker the other day about refinancing, and he said I may want to hold off a few months and see if the FHA moves the cutoff date ahead for the Streamline program.

Is there any chance that in 6 months, they push that date forward another 6 months, to say Dec 31 2009?
  • July 13 2012 - Tinton Falls
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Answers (7)

Yes.....but the HARP program does not involve an upfront PMI refund if the loan is refinanced in under 3-yrs.  FHA loans do have that contingency and that was the major driving force for the cutoff date.  I am holding out hope that the cutoff date for FHA loans will move up periodically to allow loans with endorsement dates over 3-yrs (but less than 3-yrs at inception) to take advantage.
  • July 19 2012
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This program is brand new it just started less than 60 days ago.  There is no precedent or indication that they are going to change the dates in the future.

For sake of comparison, HARP refinance loans also have the same cutoff date.  HARP started in 2009 and has been extended 3 times.    In 3+ years of the program being available the eligibility dates have not changed.

It would be great if they dates change on both these program, but there is nothing that indicates this will be case at this time.
  • July 19 2012
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I am in the same boat.  My FHA endorsement date is August 18th, 2009.  I have gone all over the internet to find out when the FHA will move up the date....with no success.  Does ANYONE know how often the FHA will move up the date?  I was hoping once every 3 months.  My guess is that's not going to happen.  Once a year is not enough.  I am at 5%....but my PMI is extremely low right now.  I work in the mortgage industry and I still can't find the answer to this.  Very frustrating that there are no communications from FHA on this subject....
  • July 19 2012
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You should still be able to do a streamline refinance, without an appraisal, the only downside is that you would have upfront mortgage insurance of 1.75% and monthly mortgage insurance would be higher as well (1.25%).

You should also get some refund of the previous paid upfront mortgage insurance, and as mentioned below the monthly does eventually go away (although you have to pay it for 5 years).

I would think that the benefit of the historically low rates (3.25% on a 30 year) may far outweigh the risk of waiting??  Good luck to you!
  • July 13 2012
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If that is the case then yes that is the only way to go. Depending on the rate you are at now and the loan amonut there are still savings to be had even at the higher premiums and keep in mind they do go away.  My suggestion to you would be to keep a close eye on everything and if rates start to climb pull the trigger.  Will do you no good if you keep the mortgage insurance premium if your rate is no longer low.
  • July 13 2012
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I wish I could, but I don't have enough equity in my house to do so.  My LTV is 94% from what I paid in Nov 2009.  And, given the way property values have tanked, my condo is probably worth $30,000 less now than what I paid for it.  Every loan guy I have talked to said FHA streamline is the only way to go.
  • July 13 2012
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I would imagine if anything is considered they will do it on a once a year basis.  Have you looked at possibly refinancing into a conventional mortgage.  2 1/2- 3yrs of making payments you should have built up some equity and values in our area have not fallen nearly the way the national media would have you think
  • July 13 2012
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