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fha streamline

HiI have fha loan closed on Nov 30 2012 @2.75 5/1 ARM, property is in fremont caI like to streamline refi to 15 year fixed with no credit check.the 210 day requirement will be met on june 30 2012.my question is will i be able to get fha case number before june 3rd and close it on july. by upram_642_280 from Fremont, California. May 24th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Good Morning! FHA Case Numbers are not considered when they are "pulled" as many seem to think, but rather when they are endorsed by FHA. This means that the loan has been "accepted" by FHA and they are endorsing the file to provide the insurance coverage on it. Therefore, the loan should close by June 3rd to avoid certain new requirements for the annual mortgage insurance including how much it will cost and how long the mortgage insurance will remain on the loan. If I can be of help clarifying all of your options, including looking at Non FHA Products, I would be happy to do so. Thank you and have a Great Day!

May 27th 2013
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Greg Gruenwald (GregG@888GREG1ST.COM)
#40 ranked lender in Illinois - 9 contributions

Hi Upram...Yes. One thing different. Your case number can be pulled next week assuring you of the old program insurance rates BUT your credit would be immediately pulled. (It doesn't make any difference when the credit is pulled.) You would then close after the 6/30 date. Feel free to contact me 888-GREG-1ST (888-473-4178) or GregG@888GREG1ST.COM

May 24th 2013
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Chris Couchon (chrisc)
#33 ranked lender in Massachusetts - 11 contributions

Should have read your question a little closer, sorry about that, doh! Some lenders require the 5% reduction in payment, and when you reduce the term to 15 Yrs payment goes up so careful now with who underwrites your file. Also, any lender worth their salt should have a case # for you in a day or 2 from submission of application. Sign all of the FHA disclosures on the spot, & with no appraisal required should be a cinch to close in that time frame.

May 24th 2013
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Hans Bruhner (Hans Bruhner)
#132 ranked lender in California - 125 contributions

OK, you got 1 answer that missed the point and then you got an answe from GregG that is correct on the case number and getting in before the FHA MMI insurance changes to permanent. The problem is that even in the case of going from an ARM to a Fixed rate, you need to be able to show that you are saving 5% of the payment amount before we can get you an FHA streamline. 15 year fixed rates are great but the payment will be much higher than your ARM so you can't get that loan on a no qulaifying loan. You would need to go full doc and have equity for that to work.. On the bright side, you have a great rate so if you started paying it like it was a 15 year fixed, you would be in great shape and well on your way to dropping the MMI you have on the property now. I am at 415-843-0142 if you want to discuss. I am on the other side of the bay from you.

May 24th 2013
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Hans Bruhner (Hans Bruhner)
#132 ranked lender in California - 125 contributions

GOOD CATCH CHRIS C! The question now becomes..... is there a lender who does not require a 5% savings on an FHA streamline? The good news here is that even if you get the case number from a lender who can't ultimately close the loan, they would pass the case number to the next person and you still have the old rules. Look what great caring advice you are getting from this community.

May 24th 2013
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James Mazzola (Mazzola)
#109 ranked lender in New Jersey - 314 contributions

Your FHA case # should be on the top right hand side of your HUD-1 Settlement Statement

May 25th 2013
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Carlos Figueira (carlosfigueira)
#107 ranked lender in New Jersey - 199 contributions

You are required to have 5% reduction in payment for an FHA streamline, It is not a lender overlay.....it is FHA guideline. based upon the ino. you provided you will not have the 5%. Your loan officer form Nov. 30th, 2012 closing should have reviewed this with you. Your best bet would be to PRE PAY on your 2.75% rate as it is good for another 4 1/2 years.

May 25th 2013
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#58 ranked lender in Georgia - 807 contributions

NO can do with the 5% payment reduction FHA STREAMLINE RULE

May 28th 2013
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Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions

As mentioned before -- cannot do FHA streamline without the 5% savings. My recommendation would be similar to Carlos' -- keep what you have and made additional payments to principal -- you might then be in position, when the ARM is ready to adjust, to refinance into a conventional loan and not have to pay the FHA MI fees. Granted the interest rate might be bit higher then, but if you do this, while at such low rate, you will be reducing the MI you are paying currently, as well as being able to avoid the higher MI of FHA in the future. Aim to have at least 10% equity, between your payments and appreciation and you will be in great shape.

May 28th 2013
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thanks for all your advice, I also checked the fha guidelines and I do see all your point but I also see this in the guide, bit of confusing to me5. Establishing Net Tangible Benefit of Streamline RefinanceIntroduction This topic contains information on establishing the net tangible benefit of astreamline refinance, including? definition of net tangible benefit? net tangible benefit of reduction in mortgage payment? net tangible benefit of refinance from adjustable rate mortgage (ARM) tofixed rate mortgage, and? net tangible of fixed rate to ARM refinance. 4155.1 6.C.5.aDefinition ofNet TangibleBenefit ofStreamlineRefinanceThe lender must determine that there is a net tangible benefit to the borroweras a result of the streamline refinance transaction, with or without anappraisal.Net tangible benefit is defined as? a 5% reduction to the principal and interest (P&I) of the mortgage paymentplus the annual mortgage insurance premium (MIP), or? refinancing from an Adjustable Rate Mortgage (ARM) to a fixed ratemortgage. Thank you,

May 28th 2013
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Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Do you have a follow up question or did I miss it in your reply? The 5% Savings is taken from your Current P&I Payment plus your MI Payment as compared to the same items for the new payment, just so that is clear.

May 28th 2013
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Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions

It used to be that changing from an ARM to permanent was considered enough to be benefit - however, there are now some criteria for those changes (as found in Mortgagee Letter 2011-11. For a "hybrid ARM" (anything other than one year ARM; which is what you have) -- going to permanent, during the fixed period of the ARM, "Reduction of at least 5 percent of P&I and MIP". When you get into the adjustable period, then the rule would be, "New interest rate no greater than 2 percentage points above the current interest rate of the Hybrid ARM". That same document says, "Reducing the term of the mortgage, in and of itself, is not a net tangible benefit."Therefore since you are in the fixed period of your ARM -- we must be able to show a 5% savings for you when comparing payment of P&I and MIP. Since there has has been a rate increase on the MIP since you closed your loan, and the interest rate would be higher today, you would not be able to qualify for a streamline at this time, unless the 15 year loan had an interest rate of less than 1.75% (based on $460,000 loan). Right now the best I can find is same rate as you have, and you would have to buy the rate down to get that on a 15 year.

May 29th 2013
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Chris Couchon (chrisc)
#33 ranked lender in Massachusetts - 11 contributions

Your FHA case # should be on the top right hand side of your HUD-1 Settlement Statement from your refinance in Nov of 2012. It is a legal size document that lists all of the fees, as well as the rate and terms of the transaction and is 2-3 pages long. If you have all of your docs still in the original package from the title company that closed your loan, it is usually on top and says; "HUD-1" the case #'s are long and start with 3 digits and then a dash. I do not think I could be any more specific, just kidding I could-Good Luck,Chris Couchon

May 24th 2013
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