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
When applying for an FHA home loan, some lenders may ask for tax paperwork as part of the application process. Some borrowers may wonder if this is legal, or an acceptable practice for home loans in general.
There are many questions about the official FHA loan rules for occupancy for single-family home loans. According to FHA rules, a borrower must occupy the home purchased with a single-family FHA loan as a personal residence as a condition of loan approval.
After the housing market crisis of the previous decade, many mortgage borrowers found themselves having trouble making their monthly payments. In some cases, borrowers just walked away from the mortgage completely and allowed the home to be foreclosed upo
The FHA has announced it would accept electronic signatures (also known as e-signatures) on several FHA home loan documents. The new policies are found in detail described in FHA Mortgagee Letter 14-03.
Some of your FHA loan closing costs may be financed, and some may--after being negotiated between buyer and seller--be paid by the seller within the boundaries of the FHA loan programís rules. The borrower can also pay some closing costs out of pocket.