Have you purchased your home with an FHA loan and are looking to refinance so you can take advantage of record low interest rates? Rates are currently at levels not seen in decades, so it makes a lot of sense to refinance or at least look into see how much you could save. The best part of refinancing an FHA loan is that it’s as easy as a refinance gets with an FHA Streamline refinance. At Sierra Pacific Mortgage we are your FHA Streamline refinance experts for anyone living in Palmdale, Lancaster, and Santa Clarita.
The FHA Streamline refinance works a lot like it sounds, it streamlines the refinance process. Unlike a traditional refinance program there is a lot of paperwork and financial requirements that take up time and money. With the FHA streamline there is much less paperwork required because it works off the existing paperwork of your FHA home loan, saving us and you time which eliminates a lot of fees. There is also no credit check or appraisal needed. There are some minimal closing costs, however in many cases those closing costs can easily be wrapped into the loan.
The only limitations to an FHA Streamline are that you have to have purchased your home with an FHA loan. If you purchased a home with a conventional loan you unfortunately won't qualify, however we have other refinance programs available to you that still will be able to lower your rate. Also, if you purchased your home with a 30 year term FHA loan, you can not refinance to a 15 year term, you will have to stay with the 30 year term FHA loan. You can not pull cash out with an FHA Streamline, however there is another FHA refinance program called the FHA Cash-Out Refinance that would let you.
There is another version of the FHA Streamline refinance, FHA Streamline 203K. The difference between the two Streamline programs is that the Streamline 203K has been designed to help pay for home improvements. One of the FHA’s goals is to help improve homes across the country. With the FHA Streamline 203K refinance it ties up to $35,000 of additional funding into the loan, for home improvements. You can’t use it for major structural improvements, but the additional funds can be used for any other improvements.
If you purchased a home in Palmdale, Lancaster, or Santa Clarita with an FHA loan then you really need to look at an FHA Streamline refinance. You will not a find an easier refinance program and most importantly you will save money on your monthly mortgage payments. Please use our free Refinance Advisor tool to see how much money you could save.