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FHA Streamline Refinance

An FHA streamline refinance will lower your monthly payment and there is a simple low cost "FHA Streamline" refinance process which you should consider. If your FHA streamline refinance transaction is simply paying off the loan with a new one at a lower rate you will qualify for an "FHA Streamline Refinance without Appraisal". With the FHA Streamline refinance, there is no requirement for either an appraisal to prove value or for any credit evaluation. This approach will save you a lot in fees and from having to requalify from a credit perspective, you must reestablish your escrow accounts at settlement. Please understand that while we will not escrow more for taxes and insurance than your current lender and your current lender is required to refund your escrow balance in full, the process takes about 30 days. So you have to come to your FHA streamline refinance settlement with enough cash to establish the escrow account with a similar amount of money refunded by your current lender after settlement on your FHA streamline refinance. Please email me with any specific questions about an FHA Streamline Refinance

FHA has permitted streamline refinance loans on insured mortgages since the 1980's. The streamline refinance refers to the amount of documentation and underwriting that needs to be performed by the lender. 

The basic requirements of an FHA streamline refinance without appraisal are:

  • Your mortgage must already be FHA insured.
  • The FHA streamline refinance must result in a lowering your principal and interest payments.
  • No cash may be taken out with the FHA streamline refinance process.
  • No income, employment, or asset verification is required.
  • A mortgage payment history is required verifying no late payments within 12 months.

Another option is the "FHA Streamline Refinance with an Appraisal". This program is designed for people taking cash out or who want to add the escrow account to their loan balance (the escrow account refund from your current lender is yours to use as you see fit). In this case we do need to appraise the property to determine value and you will need to requalify for the loan.

The basic requirements of an FHA streamline refinance with appraisal are the same as without an appraisal but we are able to finance all of your closing costs.

There are certain situations when an FHA Streamline refinance does require credit qualification. In these situations, we will require verification of employment, assets, and credit profile.

  • If your new payment is larger unless going from an ARM to a fixed rate
  • If you remove a borrower from the current loan
  • If you assumed the current mortgage with credit qualification and the assumption was within 6 months.

These are one of the easiest and least expensive loans available. If your interest rate is above the current market, give me a call to find out how much this program can save you.

Read more about FHA Streamline Refinance Closing Costs

Calculate your FHA Streamline Refinance "Payback Period"  to verify this makes sense in your specific situation.

If you already have an excellent rate on your first mortgage, I have extensive information available on home equity loans and a home equity line of credit as well

Learn more about debt consolidation

Learn more about improving your credit scores

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.