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FHA Interest Rate Reduction Program
The FHA Interest Rate Reduction Program was developed back in the early 1980's to allow current FHA mortgage holders the ability to lower their existing interest rate without the need for requalification or typical refinance expenses. This program is also know as a " streamline " due to the reduced amount of documentation and underwriting involved.
The Interest Rate Reduction Program could be right for you if you are trying to lower your monthly payments, obtain a lower rate or acquire a fixed rate mortgage.
Under this program some lenders offer:
- NO Appraisal option
- LOW Minimum Credit Score
- MINIMAL Income Verification
- EASY Credit Underwriting
- NO Qualifying Debt Ratios option
- Current mortage balance may not increase
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THE PROCESS IS EASY. GET STARTED RIGHT NOW!
Part of the process of obtaining a rate reduction will involve having your credit/scores reviewed. It is a good idea to start the process by obtaining a copy of your credit report and scores so you are informed. By clicking the "myFICO" icon below you can obtain a copy of your credit report and scores.
The loan process involves a few simple steps:
- A loan offier will speak with you regarding your current loan to see if the rate reduction would benefit you. By comparing your current interest rate, payment and terms the loan officer will be able to determine the amount of monthly savings. If the savings is not sufficient enough the FHA will not allow you to immediately participate in the FHA Interest Rate Reduction Program . In the event the savings is not enough the Loan Officer will enroll you in the Rate Watch program and keep you informed on when you would be able to participate based on a new lower rate and minimum monthly savings requirement.
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Your loan officer will put together a brief but detailed checklist of items needed to complete the process including your authorization to proceed with the rate reduction program.
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Your assigned loan specialist will verify your eligibility and work on putting together the new terms of the loan.
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You loan specialist will arrange loan documents to be sent to your home or arrange for a document signing at a local title office.
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Since you will have a new loan with new terms (including a lower rate and payment), you may not need to make your next month’s mortgage payment. The interest / payment is rolled into the new loan.
Help & Advice
If you need information regarding the VA Rate Reduction Program please click here .
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Fhavaratereduction.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Fhavaratereduction.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.
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