FHA Streamline Refinance
The two main features of this unique refinancing program are:
- You must already have an FHA-insured mortgage to qualify1.
- A FHA Streamline Refinance might not require a home appraisal2.
Additional requirements for an FHA Streamline Refinance include the following:
- The homeowners must be using the home as their primary residence.
- A 12-month payment history: No 30-day, 60-day, or 90-day late payments are allowed. Existing loans must be current at the time of closing.
- The FHA requires that borrowers make six mortgage payments on their existing FHA-insured loan and that 210 days (about seven months) pass from the most recent closing date in order to be eligible for an FHA Streamline Refinance.
- “Net tangible benefit”: Applicants must demonstrate that the refinancing has an allowable net tangible benefit, which is generally defined as reducing the [principal + interest + mortgage insurance] component of the mortgage payment by 5% or more. Another allowable net tangible benefit is refinancing from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage. Note that taking cash out to pay bills is not an allowable net tangible benefit for the FHA Streamline Refinance program but you can take cash out using a standard FHA loan program.
- Each borrower’s situation is unique so other requirements and costs may apply.
What are the benefits of an FHA Streamline Refinance?
- Speed: If you qualify for an FHA Streamline Refinance, it is typically the fastest, simplest way to refinance your mortgage.
- Rates: An FHA Streamline Refinance is available as a Fixed-Rate Mortgage and ARM. FHA Streamline Refinance rates are as low as those for regular FHA mortgages.
- No prepayment penalty.
- No income verification required.
Who may benefit from an FHA Streamline Refinance?
Again, only those who are FHA-insured homeowners and who meet the other requirements outlined above are qualified for an FHA Streamline Refinance. Given that verification of income is not required, an FHA Streamline Refinance may be of particular benefit to those with lower incomes; however, the homeowner must have the ability to pay the refinancing costs and make the monthly payments.
For more information:
Contact Doug Bullwinkel today at (800) 636-8910 or email him at: firstname.lastname@example.org to see if an FHA Streamline Refinance may be right for you. #1 & #2 Restrictions apply, call for details.