Current home owners who secured FHA financing must read the following changes that are taking place January 1, 2010.  FHA currently has a popular refinance program called “FHA Streamline.”

On September 18, 2009 HUD released an update to FHA Streamline refinancing.  The plan is to tighten up underwriting and loan approvals.  Here are 3 major changes that will impact you starting January 1, 2010!

• Must certify FHA borrower is employed and has income
• FHA borrower must provide asset documentation
• FHA requires a full appraisal to roll closing costs into the loan

Currently FHA Streamline allows a borrower to refinance without employment verification, asset verification, a full appraisal, but you must be current on your mortgage payments.

The purpose of the streamline currently is if you are current on your mortgage payments and you have the opportunity to lower your interest rate, you should be able to make a mortgage payment that is less.  “Commonsense”  This process would decrease the risk of default for government loans.

If you have an FHA loan consider taking action prior to January 1, 2010!  If you have questions please call 425.818.2078

Thanks

The Mortgage Reel

Copy of the official release is below!