The FHA streamline refinance refers only to the
amount of documentation and underwriting
that needs to be performed by the lender,
and does not mean that there are no costs
involved in the transaction. The basic
requirements of a FHA streamline refinance
are:
Borrower's original loan must already be
an FHA insured loan.
The refinance must lower the principal
and interest payments of the previous
mortgage payment.
The mortgage must have been paid as
agreed for the last twelve (12) months
and must be up to date at the time of
refinancing. Borrower must have had the
FHA mortgage for 6 months.
Borrower cannot receive any cash back.
No income or employment verification -
No pay stubs or W-2 forms - No termite
report.
Appraisal only required if rolling in
the closing costs. Streamlines without
an appraisal are limited to the unpaid
principal balance, minus any refund
credit of the mortgage insurance
premium, plus the new upfront PMI if it
is to be financed in the mortgage.
Any other liens must be subordinated to
the FHA loan.
Borrower must be up-to-date on any
federal debts.
Lenders may offer FHA streamline refinances
and include the closing costs into the new
mortgage amount. This can only be done if
there is sufficient equity in the property,
as determined by an appraisal. Streamline
refinances can also be done without
appraisals, but the new loan amount cannot
exceed what is currently owed, i.e., closing
costs may not be added to the new mortgage
with those costs either be paid in cash or
through the premium rate as described above.
Investment properties (properties in which
the borrower does not reside in as his or
her principal residence) may only be
refinanced without an appraisal and, thus,
closing costs may not be included in the new
mortgage amount.
If you have an FHA
loan, there is still time to refinance. We
have rock-bottom interest rates and our FHA
Streamline Refinance process is so SIMPLE!
This refinancing option is considered
streamlined because it allows you to reduce
the interest rate on your current home loan
quickly and oftentimes without an appraisal.
FHA Streamlined Refinance also cuts down on
the amount of paperwork that must be
completed by your lender saving you valuable
time and money.
Why FHA Streamline refinance loans?
Minimal paperwork and hassle.
No
Out-of-Pocket Cost Interest Rate
Reduction programs.
Easy
credit and income qualifications.
No
Origination Fee and no points options
available
It is
simple to shorten or lengthen the term
of your existing loan.
