No sooner had the reduced MI gone into effect with FHA streamline refinances, some banks announced that they would only provide FHA streamline refinances on mortgages they currently service. I can understand a bank doing this on the “non-credit qualifying” refinances where borrowers do not document their income or assets, however I have a hard time accepting this when a borrower is doing a full “credit qualifying” FHA streamlined refinance.
By limiting availability of a program to home owners who are ABLE AND WANT to continue to make their mortgage payments and take advantage of the historically low mortgage rates, these banks are hampering the recovery of our housing markets.
Wells Fargo, with a significant market-share of FHA insured loans, was the first bank to come out with this announcement. If you have an FHA mortgage with Wells Fargo, I can help still you with your refinance if your home is located in Washington. I just have to keep your new FHA loan with Wells Fargo. Other banks have followed suit with a few giving us deadlines of up to this Friday, June 22, 2012 for accepting FHA streamline loans they do not service.
UPDATE: Received a notice of one bank adding a price hit for FHA streamlined refinances… somehow I don’t think HUD invisioned banks cherry picking and charging more for this program when HUD reduced the mortgage insurance premiums.
I continue to get announcements from the various banks and lenders we work with. Thankfully not all banks are following Wells Fargo’s suit.
BOTTOM LINE: if you have an FHA mortgage and are interested in an FHA streamlined refinance, please don’t delay! Banks are making them less available.
If your home is located anywhere in Washington state, I can help you with your FHA insured loan. We are *currently* working with lenders who will accept FHA loans currently being serviced from other banks. Click here to apply.
I put in a FHA steam line loan with a bank and they say it was OK.
Then they say it not OK besause I had a down payment loan. I call
the down payment loan co. and they say that I can get a steam line loan.
if I sell or pay off the home than I pay then.
Hi Paul, if your down payment loan is similar to what we offer with Home Advantage via the Washington State Housing Finance Commission, then the downpayment assistance needs to be paid off as well as these loans currently are not able to be subordinated. The new mortgage loan, that is created from when you refi, needs to be in 1st lien position.
Check with your lender to see if you have enough home equity to include the down payment assistance mortgage in the refi. In that case, it may not be a streamline refi and it will be a full “rate-term” refi.
Good luck!