BIG FHA Streamline Refi news (for FHA loans prior to June 1, 2009).

This post is strictly written to provide information for those borrowers who currently have a FHA loan that were Endorsed by HUD prior to June 1, 2009.

The FHA Streamline Refinance product has always been an attractive product as no appraisal or income documentation is needed. However, while rates are low the benefit to the borrower has been significantly reduced by the 1.00% FHA Up Front Mortgage Insurance Premium (UFMIP) and the 1.10 monthly MI.

Effective June 11th, HUD is reducing the UFMIP for eligible loans to a very low .01% and cutting the monthly MI to .55 (half of current regular levels).

Those who may have looked into a FHA Streamline but did not have the benefits due to the current fees should definitely look into it again. The key is for your current FHA loan to have closed (and been Endorsed by HUD) prior to June 1, 2009 to qualify for these newly reduced fees.

If those who have an FHA loan that closed after June 1, 2011 but have not looked into a Streamline refinance yet, if your current interest rate is high, investigate what benefits a FHA Streamline refinance may still have for you. Even without the reduced fees there are plenty of people saving quite a bit with the current program as well.

Good luck!
-Adam.