I find myself taking for granted knowledge that surrounds me on a daily basis. One such oversight was recently pointed out by a dear friend. It’s called the Streamline refinance. It is for people with FHA and VA mortgages who would like a lower interest rate. Rates are moving between 4.75% and 5.25% on a regular basis, so if your rate is higher than 6%, now may be the time to take advantage of this program. It can be done with or without an appraisal and requires NO INCOME verification. The cost is low and in many cases, can be added to the principal, resulting in no out of pocket expenses. It takes about 3 minutes to determine if the refinance makes sense, so that’s relatively painless. For more information, please call Jennifer Conklin 208-371-4766 or email me Jconklin@Idahopmg.com
The Treasure Valley will see a decrease in the FHA loan limits for 2009. Ada and Canyon counties will both adjust. New limits will be $271,050. This is a significant drop from the 2008 limit of $303,750. There is still time for a purchase at the higher limit, but not much. The drop isn’t a huge surprise as FHA hopes to maintain their stellar positioning, especially in light of problems with Fannie and Freddie. FHA currently requires 3% down from the borrower, though rumors abound that an increase to 3.5% is in the works. While the seller is no longer allowed to partcipate in the down payment, gifts, community seconds and loans from employers are still viable alternatives.