Am I able to streamline?

[Kevin74]

I purchased our house with an FHA mortgage after our condo had been given spot approval.

We wanted to streamline and had started filling in the paperwork and were then told that under new guidelines FHA is no longer accepting streamlines on Condo's with whats considered spot approval or Condo's that are not on the approved list - and unfortunately as mentioned our home is one of those considered spot approved.

However, having looked online I have seen some sites saying there are two types of streamlining - with appraisal and without appraisal and that if you streamline without appraisal it does not matter if your property is no longer on the FHA list.

Does anyone know if this is true, or if there is a way of streamlining a property with an FHA mortgage if it is no longer FHA approved?

Many thanks

[Alex Ferreras]

Here's some information that I found. Hope this information could help. You can search your question on the search bar above to find several threads all over the forum. People usually eventually stop and share their stories or information. Hope the information I provided could help.

FHA Streamline

FHA Streamline

Need some advice - FHA Refinance / FreddieMac Relief Refinance

FHA has permitted streamline refinances on insured mortgages since the early 1980's. The "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:

	The mortgage to be refinanced must already be FHA insured.
	The mortgage to be refinanced should be current (not delinquent).
	The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
	No cash may be taken out on mortgages refinanced using the streamline refinance process.

Lenders may offer streamline refinances in several ways. Some lenders offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.
Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. 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.

HUD Streamline Your FHA Mortgage

[juskilentime]

good information Alex.

[Kevin74]

Thanks for the information.

There is some good info on FHA streamlining, but unfortunately I could not find the answer to my specific query. It is my mortgage lender who told me that the guidelines had changed back in February 2010.

I had seen online that opting for streamlining without appraisal could bypass the issue that my property is no longer FHA approved and was trying to see if anyone had encounteresd the same problem and if so if they had found a solution - as my development has refused to pay to become FHA approved.

[juskilentime]

If FHA currently insures your mortgage, what do they have to lose to allow you to streamline refinance it for a better rate, thereby making the mortgage more affordable. New FHA rules went into effect just this past Monday. The upfront mortgage is now only 1% (from 2.25%) but the monthly MIP is much higher. Be sure to see if that would make it worth doing a streamline refi.

Is the lender you're talking to the same lender that you pay your mortgage to?

[Kevin74]

Yes it is the same lender. They are the ones who suggested streamlining initially and got us to fill in the papers to take advantage of the lower interest rates, but then cam back saying that as our development is not FHA listed under the new guidelines we weren't able to streamline.