Colorado FHA Streamline Refinance
Denver / Lakewood: Do you want to lower your mortgage rate and payment but don’t want to go through all of the hassle and paperwork with getting a mortgage? Then the FHA Streamline Refinance Loan in Denver is for you!
The FHA Streamline Refinance is called a streamline because of the reduced paperwork required. You must have a current FHA home loan and it will roll over into a new lower FHA mortgage rate. There is no appraisal required and no income documentation needed. In addition, the credit check is limited to only your mortgage history, and you don’t even have to be perfect on your mortgage pay history to qualify! However, we still look at your credit score and our minimum is 580.
What are FHA Streamline Refinance Rates in Denver?
FHA mortgage rates are influenced by many factors such as your credit score, what kind of property your home is (condo, single family detached home, manufactured), and what term you want (30 year, 15 year). We can provide a no obligation, accurate, estimate for your situation, just visit our refinance advisor form and we will get back to you quickly! The FHA mortgage rate must go down by at least .5% in order to meet FHA guidelines.
Can I skip two payments with an FHA Streamline Refinance?
Yes! Skipping two payments is one of the big benefits of an FHA Streamline Refinance in Denver. However, it’s important to know that the way two payments are skipped is that the interest for those two months are rolled into your loan, which will increase your loan balance.
What about FHA Mortgage Insurance?
Mortgage insurance is mandatory on all FHA home loans, and you will have mortgage insurance again on your new FHA home loan. FHA has both an up-front mortgage insurance premium and a monthly premium. The up-front mortgage insurance premium is typically financed into the loan, and the good news is that if you obtained your current FHA home loan within the past 3 years, you will get a refund of a portion of the up-front mortgage insurance you paid on your current loan!
What is a “credit qualifying” FHA Streamline Refinance?
If any borrowers are removed from the loan, you must “credit qualify” for the new FHA home loan. This means that a full credit report will be pulled, and income verification will be required. You must qualify for the loan by showing you have the capacity to pay the mortgage on your own. There is an exception allowed in the case of a divorce or legal separation if you were awarded the home and are on the current FHA home loan, you may still qualify for a “non-credit qualifying” FHA streamline refinance, which is the lower documentation option explained above. In either case, the loan can still be done without an appraisal.
What are FHA loan limits in Colorado?
FHA loan limits in Colorado change each year and differ by county. You can check the FHA loan limits here: https://entp.hud.gov/idapp/html/hicostlook.cfm. The FHA Loan limits in Denver for 2020 (and all metro counties) is $575,000, which mirrors the Colorado 2020 conforming loan limits. The FHA loan limit in Boulder County for 2020 is $644,000.
Questions? Give us a call! We are here to help and it doesn’t cost a penny to call. Our number is 303-670-0137 (you can text us there too!), and our email is rbaxter@choicemortgage.com. We look forward to helping you!
