Texas Lending (TexasLending.com) Explains the New FHA Streamline Program to Home Buyers
Mortgage banker TexasLending.com is known as Texas Lending to many satisfied clients in Dallas, Texas and beyond. One of the services offered by the mortgage banker provides prospective homeowners with a new alternative to traditional FHA lending.
Online, August 8, 2012 (Newswire.com) - Texas Lending (Texaslending.com), one of Dallas's most respected mortgage bankers, is helping clients understand the new FHA Streamline Program. The program, initiated in response to the current economy, allows homeowners to refinance without a home appraisal.
One of the biggest problems for homeowners is that many homes have lost value in recent years. According to Texas Lending CEO Kevin Miller, the FHA Streamline Program allows homeowners to refinance the original purchase price, freeing up many homeowners who would not normally qualify.
"The program encourages underwater mortgages," reports Kevin Miller. "Even if you owe twice what your home is now worth, the FHA will refinance your home without added cost or penalty."
Another great aspect of the FHA Streamline Program, says Miller, is that a borrower does not have to provide employment verification. Texas Lending acknowledges that the economy has hit some families with situations where they are temporarily unemployed or enduring a reduction in income. The Texas Lending team can help those families apply for the FHA Streamline Program without providing income verification. A credit score won't be taken into account either, adds Miller.
If a mortgage was endorsed before May 1, 2009, Texas Lending states that a borrower will pay lower mortgage insurance than those homeowners whose mortgage was endorsed after that date. Those who received endorsement on after May 1, 2009 will pay a higher rate of mortgage insurance but will still qualify for the program, according to Texas Lending.
"The FHA Streamline Refinance is a special mortgage product reserved for homeowners with existing FHA mortgages," says Kevin Miller. "Homeowners with conventional mortgages via Fannie Mae or Freddie can't use it."
Aside from these benefits, the FHA Streamline Program is the same as other loans processed by Texas Lending, according to Miller. Fifteen- and thirty-year terms are available and borrowers have the option of a fixed-rate or adjustable mortgage. With the FHA Streamline Program, Texas Lending customers will also have no prepayment penalty.
Texas Lending emphasizes that there is a catch, however. In order to qualify for the FHA Streamline Program, applicants must have a twelve-month history of paying on time. If a homeowner has been as little as thirty days late on a payment, the team at Texas Lending explains, he or she will likely not be accepted. The FHA has instituted this precaution to lower its risk. Also when the loan is closed, a homeowner will be expected to be current on his or her payments, cautions Texas Lending.
The FHA Streamline Program provides a great opportunity to those who need to refinance their mortgages, but who are unable to do so through conventional methods. Texas Lending will not only explain the program, but is also available to help borrowers with the process of participating in the FHA Streamline Program. Texas Lending can run the numbers and determine how much a monthly payment would be, showing the options for both fifteen- and thirty-year loans.
Texas Lending (TexasLending.com) is a Dallas-based mortgage banker that has won the Consumers' Choice Award for five years in a row. With a commitment to customer service, Texas lending.com has grown from four employees to 200 since Kevin Miller founded it in 2001.