Amidst the economic crisis of the past several years, you will clearly notice a surprising trend in America. The number of home ownerships has increased at a steady rate regardless of the economic conditions in the country. If you are curious about this detail, you may want to know that FHA home loans are responsible for this trend. FHA refers to Federal Housing Administration, and it controls HUD (Housing and Urban Development). So, how can this help you? The Federal Housing Administration is responsible for insuring your mortgages so that you can get good deals from lenders even if you don’t have required down payment and documents. This is also the reason why FHA mortgages are so much popular among borrowers and lenders.
FHA offers a number of advantages to all types of borrowers including upside down ones. If you have a mortgage insured by F.H.A., you can refinance it with a lot less paperwork and documentation. This just means that you can apply for refinance under F.H.A if the value of your property has been declined over the years. Some options that you will get in F.H.A. StreamlineRefinance:
- F.H.A. Streamline without any Appraisal and Credit.
- F.H.A. Streamline without Closing Cost.
- F.H.A. Streamline Refinance with Appraisal and Credit.
If you analyze the above mentioned options properly, you will see that F.H.A. Streamline without any Appraisal and Credit is the best option for those who do not possess any equity in their homes. This option doesn’t require you to have an appraisal to get qualified. The main reason why lenders agree upon these loans is their low interest rates. Since the interest rates are exceptionally low for these loans, lenders have the confidence that borrowers will pay the entire loan back on time.
FHA & HFA Refinance in the State of California
For those living in California, an FHA Refinance California is very similar to loans in other states. California is not completely unique from other parts of the country. While the FHA sets loan limits for each state, California’s loan limits are different from those in other states. Since the cost of real estate is generally higher, the loan limits also tend to be higher.
In contrast, California HFA loans are more geared towards offering resources for 1st time homeowners or perhaps those individuals who need a more personalized solution to their mortgage needs. There are also resources available for housing projects that are different than the norm. For instance, borrowers wanting to invest in transitional real estate may find some unique loans that give them incentives for doing so. Note: Cal HFA stands for the California Housing Finance Agency, which is a statewide agency that focuses on helping people with affordable mortgages in California.
California mortgage borrowers may consider a refinancing loan with an FHA or an HFA when trying to obtain a new mortgage. Both agencies offer options that help the new homeowner get into a home. It is just a matter of deciding which requirements and benefits best fit the needs of the borrower.
Requirements for FHA Streamlines
Without any doubt, F.H.A. Streamline Refinance is a great choice for most of the borrowers; however, you need to fulfill certain requirements in order to obtain these types of loans. For instance, you should have a clean repayment history and you should have made a minimum of 6 monthly payments. If you meet these requirements, there is no reason why you should not try F.H.A. Streamline Refinance options.