The full form of the FHA Streamline Refinance is the Federal Housing Administration Streamline Refinance. This is one of the many options that buyers have of buying or renting a house. This is also one of the only schemes where the people who buy houses or want to buy houses do not have to provide any form of employment verification.
This is a great advantage of this scheme. A great drawback is the kind of guidelines that the housing scheme provides, which is less, but a little risky for the buyer. The Federal Housing Administration has supported several young people to buy houses and rent houses.
| Benefits of FHA Streamline | Drawbacks of FHA Streamline |
1. Hassle Free | 1. Pay Mortgage Insurance |
2. Designed to help the Owners of Homes Save Time | 2. At the Time of Payment You will have to Pay Closing Costs |
3. Save Money in the Process | 3. Premiums will be More Expensive, Making Payments Higher |
4. Documentation is Lesser | 4. Problem of Lenders |
5. Save on Mortgage | 5. Lesser Paperwork, but More Risks |
6. No Credit Check Required | 6. Availability of Liquid Cash |
7. No Credit Check or Employment Verification Required | 7. Guidelines have to be Read very Carefully |
8. No Home Appraisal | |
9. Home Security |
ADVANTAGES OF FHA STREMLINE:
- Hassle Free:
The process of receiving house loans and other such loans is often difficult. To gain a house and have mortgage on the house is even more difficult. This makes the process offered by the FHA Streamline Refinance a process which is hassle free as well as easy.
- Designed to help the Owners of Homes save Time:
The time taken to receive loans from banks and other such institutions for house purposes is something that deters people from taking these loans. The FHA Streamline Refinance process. In the Refinance process, the home owners are not required to provide unnecessary documents
- Save Money in the Process:
The best advantage of FHA Streamline is that the process helps save money for the consumer. This is done through various methods like premium selection and also through methods like online application. Instead of running around in banks, you could avail the options by FHA.
- Documentation is lesser:
The documentation process in FHA Streamline Refinance option is much lesser than the process involved in the banks of several corporations. Banks themselves have a tendency of trying to squeeze out as much documents as possible, but in the case of FHA Streamline, documentation is kept to minimum.
- Save on Mortgage:
Not only does FHA Streamline loans help you save mortgage, it also help you gain some leverage on the house you are buying or renting. The upfront premium is 1.75 per cent and the annual premium is something in between the figures of 0.45 per cent and 1.35.
- No Credit Check Required:
The process of gaining a loan or mortgage from the FHA Streamline Refinance is quite easy. This is because the credit check that is required by other banks before giving out loans is not required by the FHA Streamline. This is a great opportunity for young people.
- No Employment Verification Required:
Several people across the country are hesitant when spending on housing because they are usually told to get employment certificates and provide slips of annual salaries, etc., but with the FHA Streamline Refinance, no such employment verification is required for the person applying for the loan.
- No Home Appraisal:
This is a great relief for the home owners who have several difficulties paying their dues and their loans. This is because the home owners do not have to pay any home appraisals and can secure their loans without hesitating about financial issues and huge sums of money.
- Home Security:
The security provided by the FHA Streamline Refinance is one that keeps the home owners peaceful and helps them sleep at night. This is the kind of security that consumers expect when buying homes, but usually are left in dire straits. This is also one of the reasons buyers hesitate.
DISADVANTAGES OF FHA STREAMLINE:
- Pay Mortgage Insurance:
The mortgage insurance that is to be paid through the process of gaining a loan or a housing option is quite expensive. This is because the number of people applying for loans is high. This is one drawback that keeps the buyers of the house quite hesitant.
- At the Time of Payment you will have to Pay Closing Costs:
The biggest drawback is the big lump of money that you will have to pay as closing costs. This makes the scheme from the FHA Streamline Refinance quite expensive and unaffordable for people who literally have not much.
- Premiums will be more Expensive, Making Payments Higher:
The premiums when buying will be higher when you are buying the house, but at the same time the payments of these premiums and benefits will also be quite high. This is another one of the reasons why the consumer is hesitant.
- Problem of Lenders:
The problem of lenders is one that keeps the housing buyers under constant doubt and hesitation. The doubts that several newly-wed couples may have under the cloud of buying a house is because of the drawbacks that the lenders put out when lending out money to the buyers.
- Lesser Paperwork, but More Risks:
The paperwork regarding the FHA Streamline Refinance is quite less, but due to this reason the people who are trying to buy houses or gain the loans will also face the risk of overlooking on a few factors that may affect them much later.
- Availability of Liquid Cash:
The same can be applied to those buying loans of the banks, but in the case of the FHA Streamline is the availability of liquid cash at the time of payment is a big drawback factor, making it quite evident that the buyers must have liquid cash.
- Guidelines have to be Read very carefully:
The availability of the loans is quite easy and gaining the mortgage and the loans is also a process that does not require much effort, but at the same time the availability of cash and the reading of the guideline very carefully are important.
CONLUSION:
The reason one of the very popular options of buying or renting a house is FHA Streamline is because it is the only scheme that does not ask for employment verification and also provides good premiums for the buyer. This is a good option for those wanting to buy a house.
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