FHA Streamline to reduce mortgage interest rate Scam or real?

[Gabriel Zepeda]

Hello Everyone,

I bought a home back in January 2024 using my FHA loan and I received a call from Atlantic Capital Funding saying that I could FHA streamline (interest reduction) from my 6.625% to 5.7% and could even get two mortgage payments covered, (allegedly). I meet the requirements, which are:

1) More than 640 credit score.

2) No missed payments

3) No second mortgages

4) did not use a down payment assistance program to buy the home.

Email is below:

~Hi Gabriel, It was nice speaking with you. Since this is an FHA Streamline, there is no appraisal, no income verification, no employment verification, no out-of-pocket costs, and nothing rolled into the new loan. You would skip your October mortgage payment New Quote: 5.75% with a monthly payment savings of $230. Annual savings is $2797 and lifetime savings of $84KIf you kept making your same mortgage payment, you would be paid off in 24 years. There is nothing out of pocket for this program. If you want to proceed, please gather these few documents, and email them over to me.

• Photo ID: Please provide a clear copy of your valid photo identification.
• Proof of Social Security Number: Documentation confirming your Social Security Number.
• Homeowner Insurance Declaration Page: Is the cover letter with your policy number and coverage amounts. If you don't have it you can call your insurance company and ask them to email you the declarations page
• Recent Mortgage Statement:
• 2 Different Utility Bills: Gas, Electric, Cell Phone Bill, Cable, Garbage, any two utility bills.
• Copy of Mortgage Note all pages: Was included in your closing documents when you purchased the home. It's about 2-3 pages and says "Note" at the top
  

Please keep in mind this is based on today's no cost rate which changes based on the market Should you have any questions or require any assistance regarding this process, please do not hesitate to reach out to me.~

Is this a scam? Should I speak to my lender first and see if they can match? Does this affect a cash-out refinance or pulling out equity in the form of a HELOC/equity loan?

I guess this is a perk of buying at the peak of rates now that the Fed wants to reduce rates in the near future. Let me know this is a scam sounds to good to be true and thanks in advance!

[Erik Estrada]

Hey Gabriel, 

The FHA streamline is a legit program. I am not sure about the lender soliciting you though. Do they have an NMLS#?

Regardless you should see if you can do a conventional refinance instead, to take out the Mortgage Insurance on the FHA loan. Conventional Rates are slightly higher than FHA, however the payment difference may be significant compared to refinancing into another FHA loan.

[Gabriel Zepeda]

Hey Erik this is what the representative sent me:

Atlantic Capital Funding is certified by the FHA to do the FHA Streamline program. We're owned by a Veteran, James Henderson, NMLS 658360. They do both FHA and VA Streamlines. I would totally refinance into a conventional loan to remove MIP but you cant until you reach ~20% equity or have 15 years of payments? I could be wrong.

[Erik Estrada]

Quote from @Gabriel Zepeda:

Hey Erik this is what the representative sent me:

Atlantic Capital Funding is certified by the FHA to do the FHA Streamline program. We're owned by a Veteran, James Henderson, NMLS 658360. They do both FHA and VA Streamlines. I would totally refinance into a conventional loan to remove MIP but you cant until you reach ~20% equity or have 15 years of payments? I could be wrong.

[Erik Estrada]

Looks legit. 

[Melvin List]

I would let your loan officer know that them telling you that you will skip 2 payments is a direct TRID violation. Most companies that only do VA and FHA streamlines are mortgage sweat shops. You might skip 2 payments but you are still paying the interest just in the arrears.

[Melvin List]

@Gabriel Zepeda If you have not pulled the trigger yet you can now get into the 4's with 1% going to the broker shop.

[Jonathan Beaty]

I received an almost identical letter from Texana Bank. @Melvin List are you saying there is a better option?

[Melvin List]

@Jonathan Beaty at the time of the post the rates were about .75% better. You should still be able to get in the mid 5's.