FHA Loan Rates Below 5%

The FHA interest rate continues to trend lower.   Mortgage rates plunged through the 5% mark and are sitting at their best levels, in the FHA products, in quite some time.

The much-loved FHA Streamline Refinance program has big changes coming next week.  Beginning November 17, FHA Streamline Refinance applicants will need to evidence:

• Income
• Verification of Employment prior to close
• Assets to cover the cash-to-close.

Further, the FHA is limited loan-to-values to 97.75% for homeowners that want to “roll closing costs” into their mortgage.

The current rules for this type of an FHA mortgage refinance are nothing more than:

• FICO scores must be 620 or higher
• The refinance must provide a “tangible benefit”
• No mortgage lates allowed in the last 12 months

Big changes for those that don’t qualify.  For those that do, they’re still looking at incredible rates.