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FHA and VA STREAMLINE REFINANCE
This message is more towards John Strange, the FHA and VA STREAMLINE REFINANCE expert. Can you please explain how FHA and STREAMLINE REFINANCE loans work
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2 Replies
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Anyone in a VA or FHA loans can refinance as long as the there are no lates on the MTG with no appraisal, job, assets. They just do a MTG only which means you can have late payments on liabilities, judgements and collections that do not need to be satisfied. For streamlines FHA and IRRl’S you cannot take cash out. You can role costs into a Irrl but not FHA.
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FHA Streamline Refinance and VA Interest Rate Reduction Refinance Loan (IRRRL) are two specialized mortgage refinancing programs in the United States that offer certain benefits to eligible borrowers.
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FHA Streamline Refinance:
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Purpose: The FHA Streamline Refinance is designed to help homeowners with existing FHA-insured mortgages to refinance with minimal documentation and underwriting requirements.
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Benefits:
- Reduced paperwork: FHA Streamline Refinance typically requires less documentation compared to a standard refinance.
- Lower upfront costs: The upfront mortgage insurance premium (MIP) is lower for FHA Streamline Refinance.
- Streamlined process: The name “streamline” suggests a simplified and expedited process, which can result in a quicker closing.
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Eligibility Criteria:
- The existing mortgage must be an FHA-insured loan.
- The refinance must lower the borrower’s monthly principal and interest payments or convert an adjustable-rate mortgage to a fixed-rate mortgage.
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VA Interest Rate Reduction Refinance Loan (IRRRL):
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Purpose: The VA IRRRL is a refinance option available to homeowners with existing VA-guaranteed home loans, allowing them to lower their interest rates and monthly payments.
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Benefits:
- No appraisal or credit underwriting package is required in most cases.
- Reduced paperwork: Similar to the FHA Streamline, the VA IRRRL has streamlined documentation requirements.
- No out-of-pocket costs: Borrowers can finance all closing costs and fees into the new loan or opt for a slightly higher interest rate to cover these costs.
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Eligibility Criteria:
- The existing mortgage must be a VA-guaranteed loan.
- The refinance must result in a lower interest rate, unless the borrower is refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
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Both programs aim to make refinancing easier and more affordable for eligible borrowers. It’s important to note that these programs have specific eligibility criteria, and borrowers should check with their lenders to determine if they qualify for either the FHA Streamline Refinance or VA IRRRL.
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