It has been some time since we have heard about a government agency dropping fees, but FHA is doing that for FHA mortgages that were insured prior to June 1, 2009. Remember that it may take up to 90 days after the note date for the loan to be insured. If your FHA mortgage closed prior to March 1, 2009, you should be eligible. After March 1, 2009 you should have your mortgage professional check your FHA case number to see if you qualify.
The Up Front Mortgage Insurance Premium (UFMIP) is a one time fee collected by FHA and added to the loan balance. FHA had changed this fee to 1.75% of the loan amount on April 1, 2011. Under the new program the fee will be .01%. This means that the UFMIP would be $200 instead of $3,500 for a $200,000 mortgage. While the annual monthly mortgage insurance premium was increased to 1.25% on April 1, 2012, it will drop to .55% for this special program.
An FHA streamline refinance is as easy as it gets in the mortgage arena today. An appraisal is NOT required, so homeowners who owe more than their home is worth are eligible. While a credit score of 640 is required, debt to income ratios is not analyzed. Most of the time, the loan may be structured so that the borrower does not have to bring money to the closing.
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