FHA MORTGAGE LIMITS DECREASE OCTOBER 1st, 2011
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Loan limits in 669 counties across the country will be decreased as of October 1st, 2011. These decreases will affect Portland area homeowners. The loan limits in Washington, Multnomah and Clackamas counties will decrease by $56,500 from $417,000 to $362,250.
What does this mean for me?
If your current FHA mortgage has a balance higher than $362,250, you would no longer be able to take advantage of the FHA Streamline Refinance. If you don't have an FHA mortgage but wanted to refinance to take advantage of the higher Loan to Value limits, FHA would limit you to a loan amount of $362,250.
What is an FHA Streamline Refinance?
An FHA streamline refinance is designed to give you a lower interest rate while simplifying the mortgage process. There are two options when applying for an FHA streamline refinance.
NO Appraisal Required Option:
This option limits the increase in your loan amount and may also require you to bring some cash to closing. Typically a simular amount to your monthly payment.
Appraisal Required Option:
This option requires an appraisal, but could potentially allow you to roll all or some of your closing costs into the mortgage.
FHA does not require a minimum credit score, however each lender may have their own credit score requirements.
Why would I do this?
To save money! If your rate is over .75% above the current market rates, then this would make sense for you.
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