What rate you would be offered for your FHA streamline refi depends on many factors. If you need/want a no appraisal streamline and do not want to contribute any cash to the deal then a lender will have to increase the market rate to cover most of your closing costs. That increase would typically result in a rate a 1/4 to 1/2 of a percent higher than the market rate--for example 4.25% instead of 3.875% on a 30 year fixed rate based on today's pricing. Reducing your 5% to that 4.25% may not result in much of a monthly savings based on the new FHA mortgage insurance rates---and you must reduce your overall mortgage payment by at least 5% to meet FHA's net tangible benefit requirement. I would suggest contacting an experienced FHA loan officer who can give you more precise guidance based on your situation and needs. Good luck!
phils46,Please let me know if you need any info on credit restoration--have a lot of free info available on how you can quickly improve your credit score on your own..Have a great evening!D
To JT at the W. J. Bradley Team--per phils46--the borrower's existing loan is an ARM that resets every 6 months which means it isn't an FHA loan since FHA arms adjust annually. Can't do a FHA streamline refi on a non FHA loan.
Hi,If you are like most homeowners who file a Chapter 13 repayment plan there was a NOD (foreclosure filing) against your home. If so-nearly all FHA lenders will require a 3 year time period dating from the end of the foreclosure process (current lender records a document cancelling the foreclosure) but a few lenders will date that 3 years from the original filing date of the Ch 13 as long as the BK trustee pay history has no 30 day lates.Also-- 4 months from a Ch 13 discharge most likely means there are creditors still reporting past due balances when they should be reflected as being included in your BK. Correcting this can result in a healthy increase to your credit score via a process that only takes a week or two (called rapid credit rescoring--many lenders including myself offer it)It's important to have an excellent pay history with the BK trustee--your attorney can provide you with that very easily, and a fantastic reason for the recent mortgage late-assuming it was actually 30 days or more lateThe low LTV works in your favor. Lots of info to digest--contact me and I'll be happy to explain further.