Real Estate Home Mortgages/FHA Streamline Refinancing Eligibility
I purchased a house in Indiana in the Fall of 2011, using a 30-year FHA mortgage with an APR of 4.00%. I have read that the FHA streamline programs require you to have been on the books with FHA in 2009. Am I eligible for any type of attractive re-fi program, since I bought my home in 2011? Thank you.
You can refinance an FHA mortgage any time after being in it for 6 months. The 2009 issue comes in to play regarding MI (Mortgage Insurance). If you had an FHA mortgage in place prior to about May, 2009 - you get a significant "break" on the MI. If you are refinancing a loan originated After April, 2009 - not only will you have higher MI (Current rates) but MI never goes away if the LTV (Loan To Value) is greater than 90%. Although you might be able to get a 3.375% 30 year rate on an FHA loan, the APR would probably be around 4.00 once you factor in the MI. And, typically, only the bank that originated your FHA mortgage will do an FHA streamline. For example, I'm with PNC Bank and in the last 5 years we've acquired National City and RBC (Royal Bank of Canada), so we can do an FHA streamline for just about anyone with an FHA mortgage with PNC Ntl City or RBC - but, if it is originated after April 2009, it will still have the high MI issue.
Hope that helps.
If you are trying to do a "Streamline" because of loss in value of the house, I would suggest you contact your current lender and see what they have to offer.
All the best,
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