I keep getting FHA Streamline flyers in the mail and was curious about them.

I have a $237K loan with a 4.75% rate and a $1,700 payment.

The FHA Streamline flyer show a new payment of $1,100 with a 3.375% rate.

They claim no appraisal required, no income documentation, and up to $35K in rehab money available through 203K program.

Anyone tried this FHA streamline stuff?

Thanks

 

...33% price reduction and they don't do any due diligence...sounds way too good to be true.

 

That's what I thought but wanted to find out if someone here has actually gone this route.

 

I don't have any personal experience. However, I did receive a similar offering and did some research.

The FHA streamline 'appears' to be a legitimate government program and the 203k program is what they say. How banks and finance companies package the programs is another matter.

The key with any refinance is to understand your current mortgage and the refinanced mortgage, and determine, through financial analysis, if it make financial sense to enter into the refi agreement.

Making a decision strictly on rate or payment is not the approach. You need to look at APR, out-of-pocket cash, term, etc, etc to make an informed decision.

http://www.hud.gov/offices/hsg/sfh/buying/streamli.cfm
http://www.fha.com/fha_article.cfm?id=27
http://www.mortgage101.com/article/streaml...r-fha-mortgages

 

I'm willing to bet the fine print on those flyers say that the quoted "deal" is for an ARM.

How old is your current FHA mortgage.... and why is it for $1700?
If that $1700 includes escrow deposits, you will also have to consider those amounts and add them on to the "$1100 deal"

I have seen plenty of these "deals" and while they are not straight up scams, they typically are not in your best interest.... and they are typically based on adjustable rates.

 

We're building and they just ran through the FHA option with us for permanent financing after the build is complete. The "Streamline" may differ, but as of yesterday afternoon, FWIW, here's the basic deal with an FHA loan:

The 3.375% interest rate is the current, market, base rate. That should put your APR somewhere around 5%, give or take depending on scores, buydown/points, etc. FHA loans require purchasing an ~$8000 federal title insurance that gets rolled into your mortgage costs with the other closing fees. I haven't heard of any way to dodge that cost.

So it has some significant up front cost, and if your APR (not interest rate) is 4.75%, you won't save anything. If your interest rate is 4.75% with an APR that is higher, it's probably worth a look, assuming you'll live there long enough to recoup all the costs you incur with a refinance.

 

I closed yesterday (8/19) on my FHA streamline with Chase. Chase originated and holds my current 30-yr note, which I'm 30 months into.

Chase sent me an unsolicited offer which basically said, we'll drop your the rate on your current 30-year fixed from 5.125 to 4.500 at no cost. No documentation. No income verification. Nada.

I smelled BS, and called. It was just what they said. No out of pocket expense, no capitalization of expense, no games, no BS. Same 30 year product with a lower rate.

I had to pay a $43.00 recording tax/fee and lay out a couple of thousand dollars due to timing of escrow payments, some of which I'll recover once my quarterly tax payment is remitted and I request a new escrow analysis.

What I find most disturbing is I am currently unemployed, and haven't had any income for 20 months. My wife's income would not pass any reasonableness test in terms of adequacy to cover current expenses.

I'll take that ~$250 payment reduction but question WTF is going on.