Am I Eligible For FHA Streamline Refinance If I Have a Delinquent Mortgage?

You are eligible even if you have mortgage which is delinquent by only a few monthly mortgage payments, under certain conditions. However, before going into details of this condition, you should know the basic concept of any type of FHA streamline refinance.

The main objective of FHA streamline is to help those borrowers who have been making regular payments of their monthly mortgage but are now facing problems in making monthly payments due to various reasons. However, these borrowers can pay the monthly mortgage payments comfortable and easily if their amount of monthly payments is reduced to some extent. Therefore, it always results in a lower amount of monthly mortgage payment.

So, overall the emphasis is on helping those borrowers who have been making regular payments. You can therefore understand the basic fact that if you present your application as a delinquent borrower, you will never get FHA streamline refinance. But if you can make your mortgage regular, you can very easily borrow FHA streamline refinance. However, the prescribed condition for a delinquent mortgage is given below.

Delinquent Mortgages:

Delinquent mortgages are not eligible to borrow FHA streamline refinance. However, refinance can be offered if the loan is brought current. A flexibility given in such cases, however, that is if the mortgage is delinquent by no more than two monthly payments, then the lender offering streamline refinance can pay the borrowers mortgages to make the payments current. But in this case, the lender should not place any obligation on the borrower to repay the funds that was used to make the mortgage current.

Finally, to conclude, even if you have a delinquent mortgage and if you are serious, you can easily get FHA streamline refinance by making your payments from delinquent mortgage to current. This payment can be made by you or the lender who is lending you the refinance.

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