Maryland FHA Streamline Refinance
With the significant fall in interest rates in the recent times, borrowers in Maryland are anxiously searching for effective ways to lower their old interest rates. FHA Streamline Refinance is an effective and fast way to deal with the problem and take care of all your FHA backed loans. It gives you the opportunity to lower your interest rate, monthly payments, and gain freedom from a lot of paperwork. But before we discuss its advantages, let’s discuss what FHA streamline refinance actually is.
What is FHA Streamline Refinance?
FHA Streamline refinances allow Maryland homeowners to refinance their home loans according to the current interest rates. If the rate of interest in the market is lower than it was when you acquired the loan, you can refinance the loan to take advantage of current market conditions. It is an easy and effective way to reduce your interest rate and lower your monthly payments if you have an existing FHA home loan.
Best of all, you do not need to submit a new credit report, complete verification of your employment, or an appraisal, which saves you a lot of valuable time and money.
Why should you refinance through FHA streamline refinance in Maryland?
Refinancing can provide significant savings. Here is a checklist that would make refinancing a smart option for you:
- If your current loan has a high-interest rate.
- If your current loan offers adjustable rates.
- If your credit score has recently improved
- If you have a balloon payment coming due soon.
- If you are planning to stay in the same house for the coming years.
- If you have accumulated some equity
- If you have a HELOC (Home Equity Line of Credit)
- If you have a second mortgage to pay
If you are having any of the mentioned issues, you could benefit from refinancing your current home loan. Not only will you be able to enjoy the attractive FHA streamline refinance rates but also help you manage your long-term finances more efficiently.
The FHA streamline refinance is a reduced documentation loan, meaning it is much easier to obtain than your initial FHA loan.
What are the advantages of FHA streamline refinance in Maryland?
There are many FHA streamline refinance pros and cons to be discussed. Apart from refinancing your loan rates to meet the more attractive current market standards, FHA streamline refinance offers numerous other advantages.
- FHA streamline refinances program permits you to refinance up to 96.5 percent of your property’s total value. If you are someone who still owes the significant portion of your existing mortgage, this is the most effective and proficient solution for you.
- Having bankruptcy in your financial history might be the sole reason for rejection by other financial institutions. But FHA refinance program allows you get help despite your financial history. As long as your record is clean and without any bankruptcies for the past two to three years, you can get refinanced.
- Individuals who outright own their home are allowed to borrow up to 85 percent of the property’s total value without any hassles.
- The FHA streamline refinance lenders are quite lenient and keep the credit and income requirement rates to the minimum. You can even get an FHA refinance at the low credit score of 650.
- Foreclosure in your financial history is no issue either. As long as the foreclosure happened at least three years prior, you can get your home loan refinanced, easily and effortlessly.
- Apart from the possibility of “no-cost” refinancing, streamline refinance in FHA do not require any additional loan balance to cover the loan costs.
With the exponentially low market rates and such attractive advantages, more and more homeowners are getting their loans financed in Maryland. So, what are you waiting for? Apply for getting your home loan refinanced today!
How can you qualify for an FHA streamline refinance?
To qualify for your FHA streamline refinance, here are some necessary requirements that you will need to fulfill.
- To avail the benefits of the FHA refinance program in Maryland, you must currently have an FHA loan.
- Your mortgage needs to be insured to get qualified for refinancing.
- The particular home on which you have taken the loan or are planning to get refinanced needs to be your primary home. A second house or holiday home will not qualify.
- You need to have a clean mortgage repayment history. Your mortgage payment must be current to meet the requirements of the FHA streamline refinance program.
- The new loan you aspire to take should lower your interest payments and monthly principles compared to the old one. It needs to be a conversion from an adjustable rate to a fixed rate.
- The current home loan you already have needs to be at least seven months old. There should be a time period of six months after your first payment due date to move forward for an FHA streamline refinance program.
- And lastly, you must not have refinanced for the past six months to get qualified for an FHA streamline refinance in Maryland.
What can you do if you don’t qualify for the refinance program?
It is not uncommon for people to be deemed ineligible for a variety of reasons. One of them is moving into a new property and assuming the loan from a previous owner. To deal with such problems, FHA offers a modified and updated version of the refinance program called the Credit qualifying streamline refinance. You will need to provide documentation of your income, credit report, and debt-to-income ration calculated on the FHA streamline refinance calculator. The paperwork is more time-consuming when compared to the streamline refinance program, but it is still quite an impressive alternative to a standard refinance scheme. If your home loan is continuously elevating your monthly payments, credit qualifying streamline refinance is the perfect solution for you.
With the historic low-interest rates and a plethora of benefits, you cannot miss this opportunity to get FHA streamline refinance in Maryland.
Get pre-approved today to enjoy the boons of getting refinanced!
Annapolis mortgage group offers FHA Streamline Refinance in Maryland and ready to help you get pre-qualified for the program. Just fill out the free online application, and one of our mortgage professionals will contact you as soon as possible to discuss your options.