Better rollout of the FHA streamlined refi product
Better Home & Finance Holding Co.the parent company of the digital lender Better.comrolled his out Federal Housing Administration (FHA) streamlines its refinancing program on Monday.
The product is available to qualified borrowers with an existing FHA loan who want to lower their monthly mortgage payment, lower their interest rate, shorten their loan term or get an adjustable-rate mortgage (ARM), the company explains.
The streamlined refi program allows FHA borrowers to refinance their mortgage by reducing underwriting requirements for income verifications and appraisals.
Better will evaluate the borrower’s credit report to assess the property’s payment history and ensure the credit score meets the investor threshold. Better doesn’t control FHA income, streamlines refi loans.
“With this launch, we are reducing the traditional barriers that exist for FHA borrowers and delivering flexible financing solutions to consumers across the country at an opportune time,” said Vishal Garg, CEO and founder of Better.com, in a statement.
Like most refi options, the FHA streamline refi requires borrowers to pay closing costs (which cannot be rolled into the new loan), as well as mortgage insurance premiums, unless the FHA loan is converted into a conventional loan.
In its second-quarter 2024 financial results, Better.com posted a net loss of $42.2 million, an improvement from the previous quarter’s loss of $51.5 million.
The digital lender generated $962 million in volume in the second quarter, up 45% from the previous quarter. Company executives predict that funded loan volume will exceed $1 billion in the third quarter of 2024.
