Thursday, December 25, 2008
I was searching for the FHA streamline refinance guidelines when suddenly the following FHA information appeared. Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This was the FHA new regs that applied to most refinancing of investment property. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Not everyone has sufficient equity in their FHA principal residence to refinance to a 5% interest rate or below. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal. There will be more posted on the FHA streamlined refinance program in the near future.