From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
Tacobelle, there are many ways to do mortgages, and every mortgage is customize to fit your particular situation. I hope you have found some answers to your questions.
Fhastreamline (a.k.a. Chris), if you wish to be taken seriously in this forum, you should consider writing a profile, uploading a photo, or simply just using your full name, to prospective clients can research you a bit or simply checked that you are licensed. In addition, please, do not call one of your industry colleagues names. That just makes us all look bad.
There is absolutely no way to do an FHA streamline refinance without verifying income. Not verifying income and doing stated income loans is what caused the biggest financial meltdown since the Great Depression. HUD does not allow FHA streamline refinance to be funded without verification of income. Think about it why would the federal government allow a loan without financial documentation to fund? We have a direct endorsement relationship with HUD. The reason that you must bring in cash to close escrow is that we have to set up a new impound account for taxes and insurance is because the loan to value cannot exceed 98% and if you purchased a home with 3/2% down you will be getting a refund for your current upfront insurance premium. Hope this helps and there's an old saying out there that if something is too good to be true it usually is. Good luck and I welcome any questions.
PS I have several clients whose names I could give you who loved getting their streamlines done with me:)
For FHA case numbers issued October 5th and beyond, you are subject to the numbers outlined in her second scenario.
FInally, HUD protects you on these refis. We cannot do an FHA Streamline refi for you unless the net tangible benefit to you offers you a 5% monthly savings. Since your property taxes, monthly mortgage insurance and homeowner's insurance will all remain the same, hitting that 5% total savings is a challenge.
Talk to your lender, at least get them to issue you an FHA case number, and then start working.
Have your lender of choice do a saving scenario to determine if it makes sense to refi now. Doing a no appraisal streamline @ a loan amount of 282K should save you over 200.00 a month. Your lender can also pull your FHA case # now to insure you're grandfathered against the MIP increase due in Oct.
Example of streamline closed by September 30th with 2.25 UFMIP and .55 MIP
Principal and interest = $1461
MIP = 129
Total = $1590
Example of streamline closed AFTER September with 1.00 UFMIP and .90 MIP
Principal and interest = $1443
MIP = 211
Total = $1654
The above was using your interest rate of 4.5% and financing the UFMIP. It does not include the pro-rata refund of old MIP and excludes property taxes and homeowners. But it does illustrate how the new FHA MIP will hurt many homeowers.
Bottom line ... make your decision QUICK and get your paperwork done so your lender can get your loan package submitted by September 16th.
All the Best
Real Living Eudailey Real Estate VA
Real Living at the Beach SC