Refinance Without Appraisal


12 main features of refinance without appraisal

The outstanding feature of the Federal housing administration is to streamline re-finance without any appraisal. These following factors come under the realm of refinance without appraisal:

  1.  Loan Amount: The upper limit of loan amount in the case of refinance without appraisal would be the amount which is lesser between the actual amount of loan and the debt that exists.
  2. Actual Loan Amount: This loan amount would be the actual mortgage amount along with the insurance premium and also the mortgage premium.
  3. Existing Debt: This means the total amount of FHA insured, closing costs and all expenses paid minus mortgage insurance refunded. This does not include late fees or even escrow shortage. This equation is mostly applied only when the owner occupies the property.
  4. Term: The term of the refinance without appraisal would be 12 years more when compared to the terms of the actual mortgage not above 30 years.
  5. Cash Back: This is limited to five hundred dollars.
  6. Condominium Approvals which are withdrawn: Refinance without appraisal could actually get insured by the FHA. (Only if the approval of condominium is withdrawn).
  7. Termite Inspection: No termite inspection necessary for refinance without appraisal.
  8. Credit Report Fees: No fees for credit reports for refinance without appraisal. (But, you have to pay some costs if banking regulations, or market investors ask the lender to get things done.)
  9. Cash to close: You don’t need to show proof of cash to close.
  10. Underwriting: Mortgage credit underwriting not required for this kind of a refinance without appraisal.
  11. Delinquent Mortgages: This option is not for mortgages that are delinquent.
  12. Geographic Areas: No geographic restrictions.

So, it means that you can obtain a (fha) streamline refinance without appraisalAre you wondering how? Well, that is what the streamline refinance without appraisal is about. You must have already heard a lot about it as it is not quite new, but in the present situation of the mortgage market, this kind of a loan matters a lot than before. Most of the people are quite familiar with the regular streamline which would require an appraisal. So, the appraisal is necessary when the borrower is trying to include the closing costs along with the loan amount. The appraisal would be mandatory when you do that because the closing costs would not be added to the loan amount; in such cases, no appraisal would be necessary.

Advantages of Refinance without Appraisal

The borrower would get lower mortgage payment and this will not increase the loan amount. In some rare cases, the amount of loan increases a bit. This refinance without appraisal is mainly created for one good reason; to make things simple for everybody to enjoy the advantage of the lower mortgage rates. So, make sure that you learn about all the benefits and other details of this kind of a loan so that you will surely enjoy all the financial benefits of a good decision.

Note: the government started the Harp Program a couple of years ago. Recently the Harp 2.0 came out. Check out if you meet the requirements to get a harp loan.

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