FHA Streamline Loan
by Ross from Utah, USA
Regarding FHA Streamline Loan and Owner Occupancy Question Kate, Firstly, I love your page, thanks so much. Secondly, I own an FHA mortgage with my mother and want to take advantage of the new low interest streamline ARM but she's going into an assisted living facility tomorrow. Do owner-occupancy rules doom getting the loan?
Kate Answers: FHA Streamline Loan and Owner Occupancy Question
Hi Ross, First of all let's talk about an FHA streamline loan. Don't think FHA streamline refinances have no fees or costs. I've seen a lot of folks disappointed over this on may occasions. That being said, this mortgage program has some unique features like...
1- No appraisal required
2- No income verification
3- No asset verification
4- Limited documentation
...as long as the homeowner is no more than 30 days late on payments in last 12 months.
But what about if the home has become non-owner occupied? FHA's website says. "Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal."
This sounds promising but remember if an FHA streamline loan is processed without an appraisal, the new loan amount cannot exceed the original loan amount.
If you suspect this tosses out your chances of taking advantage of a streamline FHA refinance, don't give up. Talk with your mortgage lender, explaining your mom's situation. I have found FHA sympathetic to our senior citizens over the years and it might be that they can figure out a way to still make the streamline refinance work for your mom and you.
In the meanwhile, I recommend looking over the links at the bottom of this page. They lead to other pages on my website with a wealth of information on low down mortgage programs and how to build equity. I hope you will let me know if you have more questions.
Take a moment to bookmark FHA Streamline Loan
to your favorites and return often for more FHA tips.
Ross, this is your page. So you can invite friends to comment on it. They can also ask another question of their own like you did.
Visit FHA and VA FAQs
for solutions based on inquiries from other Contributors just like you.
P.S. Ross, I know you have a second question about FHA and owner occupancy but it deserves its own page! Watch for it soon! Kate
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