When rates are low, many people who have FHA loans are searching for the best program to use to refinance and save some money on their monthly mortgage. One of the most common refinance programs for people who currently have an FHA loan is the FHA streamline refinance. The FHA streamline allows you to refinance your current FHA loan into another FHA loan with minimal paperwork.
FHA Streamline Refinance Guidelines: What You Want To Know
The FHA streamline has published guidelines by HUD – but that doesn’t mean that each lender has those guidelines and only those guidelines. It is very common for each lender to develop some of their own “overlays” to the HUD guidelines – so they are using HUDs official guidelines for the program and then also using their own.
So if Wells Fargo denied your FHA streamline loan, what you will want to do is find out if it was because of a Wells Fargo overlay or if it was because you don’t meet the official HUD guidelines.
If you find that you are in this situation, there are two simple things you can do. 1. Ask Wells Fargo if you don’t meet the criteria due to the official HUD guidelines or one of their overlays or 2. Just shop for another lender and see what they say.
Shopping Multiple Lenders: Get The Best Deal
If Wells Fargo denied your FHA streamline and you didn’t shop multiple lenders – the easies thing to do is probably to just shop multiple lenders and see what the other lenders say. You may be surprised to learn that each lender works slightly differently and in the event that you have been denied by one, it doesn’t necessarily mean that you will be denied by all of them.
Shopping multiple lenders is easy – you can start right here with some local lenders who update their most current mortgage rates available and take the first step to getting qualified today.