FHA Streamline

Looking for a QUICK way to refinance your current FHA loan? This may be the program that you need

With today’s rates at near all time lows, millions of borrowers with FHA-insured loans have taken advantage of refinancing their homes through this program. A streamline refinance is exactly what it sounds, a way to refinancing the loan in a very quick and inconvenient process. The basic requirements for this process are:

• Must be an FHA loan

• The mortgage must be current and non-delinquent. Some lenders allow mortgage lates of 30 days in the past 12 months.

•  There must be a net tangible benefit of at least 5% that results in lowering the monthly and interest payments, or a change from a variable mortgage to a stable fixed term, or a term reduction, i.e., going from a 30 year mortgage to a 15 year.

• Streamline refinances do not require appraisals as lenders use the original loan amount in lieu of an appraisal. If the property is an investment, the FHA still allows the borrower to refinance it through the streamline without an appraisal.

• The FHA does not allow for rolling closing costs into the loan amount. Lenders may include these closing costs into the rate by charging a slightly higher rate to cover for the closing costs or the borrower may choose to pay them out of pocket at the table. 

Streamline FHAs are quick and easy to qualify. There are no needs for an appraisal but also debt-to-income ratios are not taken into consideration for qualification. Most lenders will allow for an FHA streamline with a credit score of 640 and above and proof of current employment.