How to Keep Your Home Using FHA Streamline Refinance Program

The main priority of homeowners in today's economy is to keep their home, which is proving to be even more difficult as the housing market and the job losses are adding up on a daily basis. However, for those homeowners that feel as if they are on the verge of losing their house, they have the option of a FHA Streamline Refinance program. A local mortgage broker can help you in deciding if this is an option that would be worth pursuing.

The FHA program was established in the '80s to help homeowners in negotiating their mortgage terms. This means that the can refinance and make the payments for lower amounts which in turn helps them to keep their house.

Lenders need to be certified by the FHA which stands for the Federal Housing Administration. These lenders can provide you with the terms of using the FHA program. These terms include income, credit and collateral. However, there are exceptions to these terms such as low debt to income ratio, length of employment and low loan to value ratio. What is the huge benefit of the FHA is that it ensures the loan against the borrower default, so even those who are at a higher risk of credit default will find the FHA program to be useful.

FHA loans are just like any other type of loan, meaning that your credit rating is a deciding factor. However, if have far less than good credit, as long as you have not declared bankruptcy in the last 5 years, you should still be able to qualify.

In order to qualify for the FHA, the borrower must have the payment history of the mortgage for the past year or the amount of time the mortgage has been paid on, the HUD's Limited Denial of Participation and the General Services Administration exclusion lists must be checked. However, there is no need for a termite check requirement.

The requirements for the FHA may be more than you thought which is why it is important to check with a lender to see where you stand. If you believe you may lose your home, then the FHA is a great program to take advantage of.

Source:

"FHA Streamline Refinance explained in detail" nva-mortgage.com

"FHA Streamline Refinance Requirements" Financial Web