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.

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