FHA Streamline Mortgage Refinance Loan With No Appraisal - New Guidelines For Delinquent Mortgages

There are two types of Federal Housing Administration FHA home loan refinance that can be done to help homeowners out. Firstly, a FHA streamline mortgage refinance loan can reduce your current interest rates without lengthy appraisals and tedious paperwork involved. Since the existing loan is a FHA mortgage, there is no need for further credit checks or job verifications etc which takes time to be completed. That is why this is a convenient option for homeowners to quickly and decrease their FHA streamline refinance rates successfully so that you will not have problems with delinquency on the monthly interest payments.

If you have not done a FHA streamline refinancing and have just received negative news on your employment status, you should quickly arrange for an appointment to get the FHA refinance rates reduction done over with. This is because the main FHA streamline refinance guidelines is that your current mortgage loan must be in good standing and no late payment issues within the last 12 months.

Most homeowners know that FHA allows bad credit mortgage refinancing. Since FHA looks at the borrower's overall credit history, it is easier to explain why you have one or two isolated incidents of credit problems that plummets your FICO credit score. Even with past bankruptcies and foreclosures, they can also be overlooked and you can do a FHA mortgage refinance with very poor credit scores.

If you have positive home equity, you can do a FHA streamlined refinance up to 98.75% or 97.75% of the current home appraisal value including closing costs. For those intending to take cash from their appreciated property values, the FHA mortgage limit amount is either 95% or 85% of the current home appraisal value. The exact maximum FHA loan amount here depends on which set of refinance guidelines you can meet.

Help For Delinquent FHA Mortgage Refinances

If you do not have sufficient equity in your home to payoff your current mortgage or completely cover your bad credit refinancing closing costs, then you can negotiate with your lender for help on a "mortgage write down" to write off the remaining owed balance in order for a delinquent home loan to go through. The new Housing Bill annouced in Oct 2009 has provided this option for authorized FHA mortgage lenders to write down up to 90% of the current home appraised value to facilitate delinquent FHA mortgage refinances.

FHA Mortgage Cash Out

The second option is to do a FHA mortgage cash out refinance if your home has increased in value above what you still owed, in other words positive equity. This usually happens after the house has been purchased for over a year or more ago. You can use the cash out mortgage refinance to withdraw up to 85% of the current appraised value of your house as a new mortgage loan.

The new monies received is used to pay the refi closing costs and settle the original mortgage loan while the remaining money goes into your pocket. This extra cash out money is simply the home equity you have paid for through the monthly installments on the mortgage. Many homeowners use such low interest home equity loans for financing their small businesses, credit card debt consolidation or whatever expenses they need to cover.

New FHA Refinance Guidelines

In the both scenarios above, the basic FHA refinance guidelines are that only their primary residences can be used to qualify for the refinancing and it does not apply for investment or rental properties. FHA loan mortgage refinancing is handled differently compared to conventional ones since your personal income and credit are not primary concerns.

The lenient FHA refinance guidelines with regards to personal credit issues have allowed many homeowners with delinquent debts and mortgages to apply for FHA bad credit refinance. Even if you serious financial flaws in the past such as bankruptcies and foreclosures, FHA will still try to examine whether you can continue to service the house payments even with a refinance after foreclosure.

As mentioned, your personal credit report will only play a supporting role within the FHA home loan refinance requirements. Unlike a conventional refinance mortgage broker that looks only at your credit score, you just need a basic minimum of above 580 FICO score to apply quickly for FHA streamline refinancing. Even if you fail to meet this, their guidelines are always give the benefit of doubt to homeowners and as long as you show gradual improvements with your credit score after a serious infraction in the past.

They are willing to accept that such unfortunate incidents are beyond your control, such as loss of job and having major health problems concurrently. So it is still highly possible to be not denied from a FHA home equity loan even with bad credit. On the other hand, it will be difficult to convince them if you have a series of serious infraction records on your credit report which more than likely points out that you are persistently irresponsible with your personal finances.