Profile picture for atlredan14

Can lender require an appraisal on a no cash out FHA streamline refi?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 04 2010 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

yes they can but it only means that they mis-quoted and now need to up your loan amount more than the regular streamline allows. It doesn't sound like you are getting the best deal, but i would have to be more informed on what rate you are currently at. I just did one were the loan payoff balance was $320,339 and the new loan with MIP ended up being $320,339 at a 4.25% 30 year fix. Now thats what I call a GREAT DEAL
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 10 2010
Norm - it served the purpose of getting the LO to acknowledge that the reason they told this borrower that the FHA loan was the "best" choice was in fact due to the reason they did not offer a conventional option.  The borrower had 30% equity so it  was entirely appropriate for him to be looking at a conventional loan instead of paying all  the MI on an FHA loan.

I'll offer more since you asked - what pissed me off was that I sat with BofA's client on speakerphone while the "loan officer" went through all his computer screens to get him a conventional  loan quote to compare....only to get to the end and discover that his bank doesn't offer that type of financing.  He didn't even know his own product!!!

So I guess the purpose was to see if this client could  save some money by using conventional financing instead of an FHA loan, since he had sufficient equity to do so.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 10 2010
I got the BofA LO on the phone and got him to admit that BofA doesn't offer a conventional loan on a manufactured home.


....and that served what purpose?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 09 2010
Barry is correct....and Bill didn't read your question correctly, you said "no cashout."

If your rate is really low right now, the rate you need to be eligible for the "benefit to borrower" requirement may need some cash to close as there isn't enough rebate income to cover your costs.  It's a math thing.  Have them explain the math.  If they can't, move on.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 09 2010
The answer to your first question is "Yes, a lender can require an appraisal on a cash out FHA strreamline".  Though FHA does not require an appraisal your lender could be making a mistake on a couple of accounts.  One, they may not have asked you if you have enough money in savings to pay for the closing costs.  They would therefore need to include closing costs in the loan amount and since this increases the balance, an appraisal is then required.  This may be the case if your loan amount is less than $150,000 and/or your current rate is less than 5.25%.  The second reason is that they may not be that experienced with FHA loans and just don't know how to properly structure your refinance.  In either case, it sounds like you should NOT pay for an appraisal and also look for another more experienced FHA lender.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 09 2010
Maybe atlredan14 is applying through a bank and is not being offered options?  I met with a client on a manufactured home last week who was told by Bank of America that ALL he could do was an FHA loan...I got the BofA LO on the phone and got him to admit that BofA doesn't offer a conventional loan on a manufactured home.  Not cool.

Yeah, a Streamline with an appraisal is a waste of time and money.  Additionally, I'm seeing some lenders that are requiring pay stubs and full  credit reports on these loans even though HUD doesn't require it.  We avoid brokering to those lenders and go with the ones that still follow the guidelines - mortgage rating only and no income documents.

There's still a lot of flexibility in FHA lending but you wouldn't know it unless talking to a lender who can still broker.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 09 2010
why on earth would they want an appraisal for for a no appraisal streamline? weird.

I won't even take one with an appraisal; 3% down a few years ago means you are upside down now so why bother?

pay closing costs or use a lender credit to pay the closing costs.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 04 2010
Get a new lender and do a no appraisal streamline.   
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 04 2010
Profile picture for atlredan14
I am upside down; but dont need to add fees to payoff; can pay from savings account; lender said they still want an appraisal fee; I was told streamline didn't need an appraisal if no cash out; should I keep looking for another lender or pay for an appraisal
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 04 2010
Yes - because there are 2 types of FHA Streamline refinance loans.
Streamline With appraisal and Streamline Without appraisal.
The streamline without appraisal refinance does not allow you to finance any closing costs or escrow deposits into the loan.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 04 2010
 
Related Questions
Will a Earth Contact home qualify for a FHA loan
Profile picture for rlashley0
Latest answer by rlashley0
11 minutes ago | 2 answers
Can I Be qualify for an FHA loan and purchase a House. Please Help
Profile picture for Brent Kluge
Latest answer by Brent Kluge
1 hour 50 minutes ago | 10 answers
CLOSING COSTS SPARKS NV
Profile picture for randy drzewicki
Latest answer by randy drzewicki
8 hours ago | 4 answers
Who do I appeal to if fha denies a loan after we provided the requested information
Profile picture for randy drzewicki
Latest answer by randy drzewicki
8 hours ago | 11 answers
Hi my husband is eligible for a VA loan
Profile picture for Paul Collier
Latest answer by Paul Collier
11 hours ago | 9 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

 
 
 
Sign in with Google