Lenders in MN offering FHA Short Refinance Option

Good Afternoon. The issue will be to see if your current lender will actually "agree to take less" if you were to do a Short Refinance. That would require you to look into this directly with them and then get something in writing to confirm the details. Once you have that, you will be in a better position to find a lender who will work on this scenario for you.

There are lenders out there doing them, however you current lender has to agree to at least a 10% reduction in your principal for the program to work.. This has been the stumbling block.. When the program first came out, we had several lenders doing the program.. But because so few would agree to the 10% reduction, hardly any loans were done.. So those few lenders that were doing the program, are starting to drop them... so, you should start with your current lender and see if they would be willing to lower their principal.. My guess is.. They are going to make you fill out ALL KINDS of paperwork, months and months of frustration, and in the end, they are going to say no... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

A short refinance would also damage your credit as the short payoff will appear as the balance not being paid in full.

Both previous answers have good information for you. Ultimately you may not be able to take advantage of that program, and due to the FHA monthly mortgage insurance it might not be that much of a savings. You may be like many others and not have any real option to take advantage of the low current rates. Good luck

Have you looked into a true FHA streamline refinance?.... im helping a client currently underwater with their loan and the new loan will be higher than the market value on the property.... with 14yrs in the industry, and the banking of my bank Im licenced in all 50 states and id be happy to visit with you regarding your options at no obligation, John.....Direct line 816-412-3568 or Email: jschweer@dfckc.com

BTW there is a special streamline program for loan opened in mid 2009 or earlier.

I offer the product in Minnesota. The issue is the current lender agreeing to a short pay.

Lenders offering short refinances are plentiful. Getting your current lender to agree is something completely different. There isn't enough information here to allow any lender to provide any real answers for you. You need to contact a local non-bank experienced loan officer - give them a full application, and let them zero in on all your options. I am located right in St Paul. Visit my web site at www.StPaul-Mortgage.com to get started.

You wouldn't necessarily need to pay the balance down to 80% but the combination of the first any 2nd mortgage to 80% for refinancing to make sense. Depending on your current rate even paying PMI on the new mortgage might still be worth it, or there is a way to finance the PMI so that you don't have a monthly payment for it, and that is possible on a conventional loan up to 95-97% of the home value. Joe is in MN and seems very knowledgable but he apparently doesn't have a good opinion of bank-based lenders. It doesn't matter who you use as long as they are experienced, know what they are doing, give good customer service and have a competitive rate to offer. There are mortgage professionals who fit those criteria handling mortgages at both banks AND in the broker world, as well as those who are "correspondent" lenders which is sort of a hybrid. Just find the right person to help you look at options. Good luck