Section 5: FHA High Balance (Jumbo) Streamline Loans
FHA High Balance Streamline Loans
New FHA / HUD Guidelines will insure new increased loan amounts based on your county and state. That means you can take advantage of new maximum loan limits for FHA loans. High balance FHA loans are extremely popular with first time home buyers. In general, FHA high balance streamline refinance is a program that allows homeowners with FHA-backed mortgages to refinance with less time, hassle and paperwork. With a streamline refinance, you don't need to go through the FHA appraisal process again, since the FHA has already valued the property. The streamline program is only available to homeowners who already have FHA loans, but that doesn't mean you have to refinance with your existing lender. FHA loan requirements and fees may vary by lender.
FHA High Balance Streamline Loan Requirements
While service requirements remain the same, FHA high balance Streamline credit and income requirements are typically more stringent compared to a conforming FHA loan. Additionally, FHA high balance streamline rates may differ slightly -- but every lender is different.
FHA High Balance Streamline Loan Credit Score Requirements
Minimum credit scores for FHA loans start at 580 with a minimum down payment but can go lower if the buyers put down more. Lenders will check there is a record of at least two years of employment history and ask for copies of the most recent paycheck stubs covering a 30-day period. There are other qualifying guidelines, but these are the main ones. Your loan officer will provide a list of items needed when you submit your application. Standard FHA guidelines and regulations apply, yet many lenders do require a 580 FICO score. For greater loan amounts on purchases, minimum FICO scores increase to 600 on Purchase, Rate / Term refinances and to 640 on cash-out refinances.
FHA High Balance Streamline Funding Fee
Together, the Upfront Mortgage Insurance Premium (UFMIP) and the Mortgage Insurance Premium (MIP) make up the FHA funding fees. This is a necessary fee you must pay when entering a mortgage agreement which is backed by the FHA, in order to protect lenders from loss. So, you know that there are two types of FHA insurance. The first one which is charged up-front is called an FHA funding fee. Basically, this fee keeps the Federal Housing Administration in business. Actually, every FHA loan closing pays FHA 1.75% of the loan amount. With an FHA streamline there is an exception of possibly getting some money prorated if you refinance within the first 3 years of your original purchase.
Talk with an Orbit Home Loan specialist if you're considering a High Balance Loan.
Are FHA High Balance Streamline mortgage rates higher?
Traditionally, when looking to refinance you must have a net tangible benefit. Although the benefit does not have to be a better rate this is a viable option to get a better rate. Make sure to work with your Orbit Home Loan Broker to figure out what the best option is for you.
Conventional High Balance Loans v. Traditional Loan
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Talk with an Orbit Home Loan specialist if you're considering a High Balance Loan