Seattle FHA Refinancing Without An Appraisal
When the mortgage market took a huge swing from 100% financing or combo 1st and 2nd mortgages, the only loan program that allowed the least amount for a down payment was FHA. FHA has grown with increased popularity because of the minimum 3.5% down payment. FHA also provides Seattle home buyers with flexibility for qualifying such as credit score requirements.
Now that Seattle home mortgage rates have recently dropped, refinancing has gained popularity with every real estate holder. Along with Seattle home mortgage rates dropping, real estate values have dropped as well. BUT only FHA streamline refinances allow you to refinance without an appraisal!! Every homeowner has lost equity and potentially is upside down so FHA provides options to refinance at incredibly low interest rates today.
The FHA streamline features the opportunity to receive part of your Upfront Mortgage Insurance Premium (UFMIP), if you refinance within 3 years of your original financing. As each month passes, you will receive a reduced UFMIP refund.
Closing costs and prepaid items (escrow) are structured as a normal refinance or purchase loan. Unfortunately you are capped on the new start loan amount so you are unable to roll closing costs/prepaids into the loan. Depending on your current financial position, you can pay for closing costs/prepaids out of pocket or possibly take a slightly higher interest rate to help cover the costs. You always skip a mortgage payment when you refinance, so that skipped payment will always help pay for closing costs/prepaids too. Within 30 days of closing your current escrow account is refunded to you as well.
New FHA Streamline Loan Start Balance: Current FHA loan payoff – (minus) UFMIP refund.
Example: Current payoff $355,000 – $3000 (UFMIP Refund) = $352,000 start loan amount + new UFMIP (2.25%) for the new mortgage.
$352,000 x 2.25% (UFMIP) = $7,920
New Start Loan Amount $359,950.00
Requirements for a streamline vary from bank to bank but here is the basic outline:
*Current Paystub
*Must be current on payments
*620 fico score or higher
*NOTE – from current loan
*Deed of Trust – from current loan
*Assets statement (if required for closing)
Please contact us for your specific scenario and pricing!