As the economy continues to improve, the Federal Housing Authority (FHA) has broadened the spectrum of eligible homeowners who seek an FHA Streamline Loan.
Ultimately, an FHA Streamline Loan is a fancy term for refinancing a mortgage to take advantage of lower interest rates. Therefore, mortgage lenders or other mortgage decision makers have an increased opportunity to make a profit on such refinance options, such as live transfers.
Before you begin searching for FHA Streamline Loan homeowner leads that could translate into an actual refinance, you need to know some benefits of these loans. This will help you encourage your customers to reduce their payments and foster a more stable financial future.
FHA Streamline Loan Eligibility
Homeowners with an existing FHA loan may apply for an FHA Streamline Loan. However, homeowners who do not meet this requirement should be encouraged to apply for an FHA refinancing loan. Fortunately, an FHA refinancing loan may include lower monthly payments and better interest rates, as identified by the FHA.
Homeowners with an existing home loan must meet certain requirements:
- All mortgage payments made within the past year must have been made on time.
- Homeowners must own the property for a minimum of six months.
- Only FHA-approved lenders may qualify an applicant for an FHA Streamline Loan.
- Closing costs are required to be paid on the loan. However, homeowners may qualify for an FHA “no cost” loan or add the closing costs into the loan.
Understanding the Difference Between an FHA Streamline Loan and an FHA Streamline 203(k) Loan.
You may have customers who have heard of FHA Streamline Loans and mortgage options. Although both options can save homeowners money, the 203(k) loans are designed to make improvements to a home, except for major renovations and alterations.
But you can still make a profit on customers who were interested in 203(k) loans. For example, you may explain that the reduced monthly payment or fixed-interest rate could save a homeowner enough money to make the repairs to the home without taking out the additional 203(k) loan.
Perks of an FHA Streamline Loan
When customers opt to refinance their homes through the FHA Streamline Loan program, they do not need to meet many of the criteria of traditional mortgage loans. Borrowers with lower credit scores or lower income-to-expense ratios may qualify for the refinance loan.
The FHA Streamline Loan has some requirements for when a homeowner may refinance:
- A consumer may refinance the loan only if it will lower his or her monthly payment by 5 percent.
- However, an FHA Streamline Loan receives financing faster than a traditional refinancing options or FHA refinance loans of a traditional mortgage loan.
Impact of Live Transfers
President Obama signed expansions to the FHA Streamline Loan program into law in 2012. However, many homeowners may not have had the time or the resources to explore their refinance options under this program.
The use of live transfers takes the brunt of the work from your shoulders. A representative of the company will call existing FHA loan-borrowers and inquire about their desire to reduce monthly payments and interest rates. Most people will want to save money, and at this point, the representative connects the outbound call with someone from your office. This gives you a viable lead, which you must nurture only minimally to get the applicant to refinance his or her mortgage.
Furthermore, live transfer operators screen out applicants who may be able to refinance their homes under a traditional FHA loan, which could then be sent to your office for review.
Rapid Return on Investment for Your Firm
Just as your homeowners want to make money by saving money, you will make money by saving them money.
- Since FHA Streamline Loans have the backing of a federal entity, the majority of your applicants can be quickly and easily approved.
- Furthermore, you can avoid wasting time on applicants who do not meet the eligibility criteria.
The process requires minimal input and work on your part. You, or other loan officers in your office, can quickly process hundreds of FHA Streamline Loan applications per day, especially if you are able to obtain all of the necessary information from customers over the phone.
Fewer foreclosures contribute to increased economic stability and prosperity for America. Homeowners across the country need to take advantage of an FHA Streamline Loan today since there will come a time when these guaranteed loans vanish. You need to ask yourself only one question: “Why would I not make easy money and help people at the same time?”