A Texas homeowner has an existing FHA loan and wants to refinance using an FHA Streamline Refinance. Under FHA Streamline guidelines applied in Texas, which statement is correct?
Correct Answer
A) The refinance must result in a net tangible benefit, the borrower must have made at least 6 payments, and both spouses must sign the new deed of trust if it is their homestead
FHA Streamline requires a net tangible benefit, at least 6 monthly payments on the existing loan, and at least 210 days since the first payment. In Texas, both spouses must still sign the new deed of trust on homestead property.
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Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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