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!

[Ned Carey]

@Gabriel Zepeda I am not a mortgage broker and am not in touch with current programs. 

I can tell you that Various "Streamline" mortgages become available when rates drop.  Most of this sounds like it could be legit - Except the rate is too low. It is below todays rates.  If it is legit any legit lender/broker should know about the program and be able to verify if it is legit.

One way to ell a scam is to see if everyone else offers something close. If it sounds to good to be true and everyone offers it, it can be legit. If it sounds to good to be true and only one person has secret access to it - it is a scam.