Can you believe it’s been almost five years since 2007 and the start of the drastic changes and events in both real estate and financing? Time flies when you’re in crisis mode trying to survive, and few people know that better than homeowners who have been hunkered down trying desperately to hold on to their homes. Times are changing, thanks to our ability to adapt and adjust; and there are some more reasons to keep your eyes aimed towards FHA loans (both new purchases and refinances) this coming June.
If you’re not sure what we’re talking about, you should spend a few minutes learning about what promises to be the opening up of a part of the market that has been untouched. FHA will lower its Upfront Mortgage Insurance Premium(UFMIP what we refer to as the FHA PMI premium) for certain FHA Borrowers with a DROP to just .01 percent. For those in the industry long enough, you know this is a big announcement and great opportunity. In the event that you’re newer to the industry, here’s a crash course on why this is important and what you should do with this information.
There’s a good chance that over the past few months you’ve also noticed the ever increasing rate of PMI on FHA loans, making the streamline almost impossible due to the lack of benefit to the homeowner. Well, the announcement for June is that for certain borrowers that PMI rate is being dropped down to .1% which means a whole new group of untouched homeowners will now be able to get into a streamline FHA loan that were previously unable to.
If you want to know if your borrower might qualify for this new program remember these few rules:
You must be current on your existing FHA Mortgage (USDA, VA and Conventional loans do not qualify)
Your current FHA mortgage must have been endorsed prior to May 31, 2009.
Additionally, FHA says that to qualify:
• Employment verification is not required with an FHA Streamline Refinance
• Income verification is not required with an FHA Streamline Refinance
• Credit score verification is not required with an FHA Streamline Refinance
• A new appraisal is not required with an FHA Streamline Refinance
Consider the above when planning your marketing for the next couple of months and familiarize yourself with the FHA guidelines and the changes that are covered above. If you want to stay ahead of your competition it would be wise to start marketing to those FHA homeowners that are now in a perfect position to refinance or purchase with this PMI decrease.
The announced date these changes are going to take place is effective June 11, 2012. Take advantage of this awesome opportunity and start marketing to these homeowners today. Call the industry leaders at Best Rate Referrals for your FHA leads at 800-811-1402 or visit their website www.bestratereferrals.com today.