HUD Changes FHA Streamline Loan Program

FHA Streamline Loan Program Changes

HUD has revised the FHA Streamline Loan Program effective January 1, 2010. They have added requirements for seasoning, payment history and net tangible benefit. They have also required every lender to verify that the homeowner is employed, has income and assets. The FHA Streamline Loan Program was the oldest major no-income verification program in America and now even this industry standard is being changed.

Apply for your FHA Streamline Loan

While the intent may have been to make better loans, the common sense element was lost.  If you think through this, If a borrower is current on their loan then why shouldn't they be able to lower the interest rate through a Streamline Refinance.  Since the borrower is not allowed to increase the loan size by taking out cash or consolidating other credit there is no additional risk.  In fact the risk actually decreases as it frees up additional cash.

Unfortunately this program got caught in the mix by people in congress that don't understand the real world and sometimes paint broad brush strokes to try and fix something. 

This house might need a little more work for the average fix-up warrior.  But an FHA 203k loan can do wonders.  Apply for your FHA 203k loan today!