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Refinance current 15 year FHA to lower rate 15 year FHA streamline.ZR-PDCSMJY.New Guidelines?

I thought the streamline program meant less hassle and paperwork for lenders and borrowers.From the answers I recieved,there must be a considerable amount of differences between the Streamline refinance offers I have been getting in the mail, and the actual programs available to consumers. Anybody care to elaborate a little more? I am going to persue this refinance somewhere, as I believe it can be done.
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February 02 2010 - Farmington
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Hello to Farmington, NM. 
I miss my Hatch green chile from the 12 years I lived in the Land of Enchantment.

FHA has revised rules on Streamline refinances that in a nutshell usually mean:
1) a lower new loan amount, especially if the property has been recently purchased
2) usually means the borrower is going to be bringing money to the closing and can't roll in all new costs and prepaids.

You can read the details yourself in FHA mortgagee letter 09-32, which is FHA's direction to lenders.  Go to www.hud.gov and click on the "Resources" tab and next click on "Mortgagee Letters", choose 2009 and click on 09-32.  It explains the new processes for originating streamline refis.

If you need further explanation contact an FHA lender in your area and ask them to walk you through it.
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February 02 2010
It will cost you $2800 in the upfront mortgage insurance premium to do an FHA streamline. If you have had the same mortgage since you purchased, you will not get any credit from paying the initial UFMIP to offset the new UFMIP. Your inquiry states a combined $81K in income and an LTV of 59%. If you can show the income and the estimated value is close, you are way better off doing a conventional loan. 15 Year conforming loans have no adjustment for credit score so you get the same rates as if you had an 800 Fico. Also, I think you will get a better rate on a conforming loan.
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February 03 2010
In basic language, a streamline with no appraisal only works now if the rate offered is high enough.  The higher the rate the more the lender pays the loan officer for doing the loan.  This way the loan officer can cover all or most of your closing costs in order to comply with the new rules.

The problem with a 15yr loan is that a loan officer can't make enough money on the rate from the lender in order to do this.  You can still streamline refinance but you will have to bring the closing costs to the closin (those fees can not be financed in any more).

The other option is to get an appraisal and then we can finance the fees is.

I hope this helps.  I would be happy to run some numbers for you and see what we can make happen.
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February 03 2010
 
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