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Get a Loan without an Appraisal

 
With mortgage rates as low as they are, refinancing your loan may be a simple way to save  yourself money every month by reducing your monthly payments.

One of the most important parts of a mortgage is the appraisal, which allows the bank to place a value on your home. In no appraisal home refinance loans, lenders use other means to determine the home’s value instead of requiring a new appraisal. These no appraisal refinances are often a quicker, cheaper and less stressful ways to cut your interest rate or lower your monthly payments.  Below are a variety of streamline refinance options:

FHA streamline refinance

One of the most popular no appraisal home loan program is the Federal Housing Administration's (FHA) streamline refinance program.

The FHA streamline refinance loan can be a great opportunity if you have a less-than-perfect credit score. In order to qualify you need:

  • A loan already insured by FHA
  • To be current on your mortgage payments
  • Cut your monthly payments with the new loan

In many cases, you may actually be able to avoid paying out-of-pocket costs as well by rolling them into the total loan balance. However, in a streamline refinance there is no cash-out option meaning your new mortgage balance cannot go beyond what was remaining on your original mortgage.

HARP Streamline

If you don't have a lot of equity in your home and making your payments is a struggle, you might be a good fit to get a no appraisal mortgage through the government's Home Affordable Refinance Program, (HARP).

There are a few guidelines for the program:

  • You cannot have missed any loan payments in the last year
  • Fannie Mae** or Freddie Mac** need to own your loan - You can check at their websites
  • Your loan must meet the program's requirements

If you meet HARP streamline requirements, you might be able to get a new loan with a lower interest rate, which will help make staying current easier.

VA No Appraisal Home Loans

For members of the military, veterans and their families, the best no appraisal refinance option may be a VA streamline refinance called a VA – IRRRL (Interest Rate Reduction Refinance Loan).

VA loan rates are very competitive and can greatly cut your mortgage payments. In most cases, you can put closing costs and other fees into the balance of the loan, keeping your out-of-pocket costs low.

The VA IRRRL no appraisal mortgage also is not a long process. Most of the time, an experienced loan officer can do a VA streamline in about a month.

How much does refinancing now make sense for you?

First you need to figure out how much no appraisal refinance loans could save you. Look at your current interest rate and monthly payment.  

Next consider how long you plan to stay in your home. If a new loan will save you roughly $200 per month and you plan to stay in your home for at least the next 5 years, that adds up to a savings of $12,000. If you are not going to move for at least 10 years, that savings jumps to $24,000.

If you think getting a no appraisal refinance mortgage would be a good way to save some money, contact a Freedom Mortgage representative to get the process started.

**Freedom Mortgage Corporation is not affiliated with Fannie Mae or Freddie Mac and is not intended to imply in any manner whatsoever that any loan product or service will be or has been originated by HUD, FHA, VA, the U.S. Government or any Federal, State or local governmental body.