FHA Streamline Refinance
How Much Simpler Could It Be

What could be simpler for homeowners than an FHA streamline refinance? Consider the reduced requirements and phenomenal benefits to getting a new FHA loan using a streamlined process.

The streamlined process is designed to lower monthly house payments of an existing FHA mortgage with a minimal amount of paperwork.

FHA Streamline Loan Requirements and Net Tangible Benefits

Streamline loan requirements...

  • Existing mortgage needs to be FHA insured.
  • Existing loan must be a minimum of 210 days old.
  • 6 payments can be verified on current financing.
  • No 30, 60, or 90 day lates on last 12 housing payments
  • Mortgage payments must be current at closing.
  • Refinance must result in reduced payments.
  • No cash out is allowed.
  • Investment properties and second homes can refinance to fixed rates only.
  • Without an appraisal, original amount of loan cannot be exceeded.

FHA streamline mortgage must show net tangible benefit...

  • Benefit: A 5% decrease in mortgage payment.
  • Benefit: Going from adjustable mortgage rate to fixed rate mortgage.
  • Not a benefit: Reduction in term of loan.
  • Not a benefit: Cash out.

FHA streamlining benefits...

  • Less paperwork on borrower's behalf.
  • Relaxed underwriting creates swifter process.
  • Owner occupied, second homes, investment properties.
  • Closing costs can be paid on behalf of borrower by increasing interest rate.
  • Investment properties will not be appraised.

Mortgage lenders have the right to add additional requirements to your FHA streamline refinance transaction. Ask your loan originator which benefits apply.

In some cases...

  • No credit report will be required.
  • No employment certification will be required.
  • No income documentation will be required.
  • No appraisal will be required.
  • No property repair will be required.

In addition to FHA loan requirements, your lender may increase conditions. Ask your mortgage representative which benefits apply to your FHA streamline refinance.

FHA Streamline Loan and Closing Costs

One myth surrounding the streamline program is that there are no FHA closing costs. In fact, the closing costs are about the same as any other FHA refinance.

One exception is no appraisal charge if an appraisal is not required.

Generous Homeowner Solution to Borrowing Cash

FHA does not make allowances for homeowners to borrow cash during a streamline refinance. But we all know there are certain times cash comes to the rescue for all kinds of reasons, from remodeling to paying doctor bills.

So if cash is what you're seeking, find a generous solution with a full FHA refinance.

Ask Kate About FHA Streamline Mortgages

What if you could ask a mortgage insider anything you want regarding homeownership? Now you can. Ask Kate is specifically designed to answer your questions and create dialog regarding mortgage financing.

Catch this Reader's FHA streamline refinancing questionsfollowed by my answers.

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