FHA Loan Articles
News, updates, and explanations to keep you informed.
Maximum Loan Amounts for VA Streamline Refinancing
You might not apply for a new purchase VA mortgage loan thinking about the day you might want to try refinancing the mortgage, but in tough economic times, many homeowners begin thinking about a VA Streamline Refinancing Loan, and rightfully so. VA Streamline Refinancing Loans can lower interest rates and monthly mortgage payments and are a good way to improve your bottom line.
Did you know the VA Streamline Loan program actually requires payments to be lowered or provide an alternative "net tangible benefit" to the borrower?
Naturally one of the first questions a VA borrower wants to know is how much the maximum loan amount on a VA Streamline is; according to the VA Lender's Guide, most VA home loans are limited to "the amount of the loan to the reasonable value of the property shown on the Notice Of Value plus the cost of energy efficiency improvements up to $6,000 plus the VA funding fee".
But when it comes to a VA Streamline Refinancing or Interest Rate Reduction Refinancing Loan, the VA loan limit includes the VA loan balance on the current mortgage, plus "the cost of any energy efficiency improvements up to $6,000, allowable fees and charges, up to two discount points, plus the VA funding fee." These are items that can increase the maximum streamline loan amount available to you because of the add-ons to the loan.
All of those options are allowed, but after careful consideration, some borrowers choose not to include the VA loan funding fee and discount points into their refinancing loan. This is a smart choice in many cases because of the rule which states that a VA Streamline Loan must include a credit check when the monthly payment increases by more than 20%.
The more extras like the VA loan funding fee or discount points a borrower wants to roll into a VA Streamline Loan, the closer a borrower may be to needing to apply for a credit-qualifying Streamline Refinance loan instead. It's important to evaluate how much your extras rolled into the loan will add to the mortgage payments and the overall cost of the VA refinancing loan.
FHA NEWS and RELATED ARTICLES
Some borrowers come to the FHA loan process with a long credit history, while other borrowers are just getting started. Is it possible for a borrower be turned down for an FHA loan because of a lack of credit history?
The FHA Reverse Mortgage, also known as Home Equity Conversion Mortgages or HECM loans, is designed for those aged 62 and older who own their home outright or have few payments left on the mortgage.
When the Department of Housing and Urban Development announced the FHA’s Back to Work program, it was very good news for any potential FHA loan applicant who may have experienced previous financial hardship as a result of the recession.
When you apply for a new purchase FHA home loan, FHA loan rules say you must list your income and employment details. This lets your loan officer accurately determine your debt-to-income ratio, using calculations based on your verifiable income.
Do you need to buy a home using an FHA loan, but one that is out of town or out of state? The Department of Housing and Urban Development has created a new tool to help FHA loan applicants and anyone else looking for a home loan.