Credit Qualifying and a Tucson / Sierra Vista FHA Streamline Refinance Loan


By Joseph Small

Today I wanted to talk about the FHA Streamline Refinance loan and credit qualifying. Over the past few years, a lot of first-time homebuyers in cities like Tucson, Sierra Vista, Sahurita and Green Valley took advantage of the low downpayment that FHA home loans offer. Fast forward to today. With mortgage interest rates at an all-time historic low, a lot of these homebuyers would like to refinance their FHA mortgage and lower their payments.

This is where the FHA Streamline Refinance loan comes into play. If you are current on your FHA loan with no late mortgage payments in the past 12 months, then a streamline refinance might be a good option for you. One of the biggest advantages of this program is that it does not require an appraisal. So you could be underwater with your mortgage… it will not matter.

One June 11, 2012, there were some changes to the FHA streamline loan program that helped those who purchased and have an FHA home loan that was endorsed prior to May 31, 2009. Click to read FHA Streamline Changes. However, there seems to be some confusion for those that do not meet any of the “prior to May 31, 2009” criteria. You can refinance today, but will have to do it with today’s increased UFMIP and annual mortgage insurance factors.

Another issue that seems to be popping up a lot is doing what is called an FHA Streamline Refinance with credit qualifying. The general rule is that if you are removing a co-borrower that was used when you originally purchased the home, then you would have to re-qualify for the new FHA refinance loan. We see this a lot with divorces and co-borrowers who are now deceased.

Even though this is still considered a streamline refinance, there are some documentation that will be needed and verified. Such as: tax returns, paystubs and bank statements, ect.. However, no appraisal will be required.

If you have any questions on this, then please give us a call or send us an email. Or you can leave a comment below. And if you think you are ready to start the process, then click here: Apply Now

Note: All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice.

Joseph Small and his team at Guild Mortgage Company is your trusted source for all your VA, FHA, USDA Rural Development and Conventional home loan mortgage needs in Tucson, Sierra Vista, Sahuarita, Green Valley and Nogales, Arizona. Give Joe and the team a call to get started. (520) 303-5620

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