Interestingly enough, you’re not required to verify your annual income or employment status. You can determine the net tangible benefit by reducing the “combined rate” by at least half of 1%. You’ll also have to demonstrate that there is a net tangible benefit in your refinance. Also, in order to be eligible for a Streamline Refinance, 210 days need to pass from your most recent closing date. The FHA also requires that homeowners need to make six mortgage payments on their current, FHA-insured loan. And at the time of closing, your loans need to be current. You’re allowed to have one late payment on your mortgage in the last twelve months. Because of this, the most important qualification standard is that homeowners who use the Streamline Refinance program need to have a perfect three-month payment history. What are the Requirements for an FHA Streamline Refinance?Ĭonsidering that the FHA is currently insuring over 8 million mortgages, it’s easy to see why its primary goal is to reduce its risk in the overall loan pool. Continue reading to learn all about the requirements that you need to meet. You just have to meet the guidelines set by the FHA. You can also do an FHA Streamline Refinance more than once. And there isn’t any penalty for having very little equity. When you do this, you’ll lower your monthly payment even more.Īlso, the rates that come with the FHA Streamline Refinance are going to be the same as mortgage rates for a “regular” FHA loan. However, you can use it to extend your 15-year mortgage into a 30-year one. This program can’t be used to refinance a 30-year mortgage into a 15-year mortgage. This program is available as an adjustable or fixed-rate mortgage, it comes as a 30- or 15-year term, and you also don’t have to worry about any FHA prepayment penalties.

The FHA Streamline works a lot like any other type of refinance program. How Does an FHA Streamline Refinance Work? It’s best to compare quotes from multiple FHA streamline refinance lenders so that you can find the best option that works for you. With that said, you don’t have to refinance with your current lender. You can only utilize the Streamline program if you’re already a homeowner who has FHA loans.

Cutting the extra documentation that comes with a credit-qualifying streamline refinance could mean you end up getting a lower interest rate. However, you won’t need those requirements with non-credit qualifying FHA streamline refinances. With a credit qualifying streamline refinance, your lender will have to calculate your DTI ( debt-to-income ratio ), execute a credit check, and assess your ability to continue to pay your mortgage. There are two types of FHA Streamline Refinance programs: non-credit qualifying and credit qualifying. And since the FHA has already valued your property, you won’t have to go through the FHA appraisal process again.

With an FHA Streamline Refinance, you can refinance your FHA-backed mortgages in a relatively short amount of time. Interested in learning more? Continue reading and we’ll walk you through what you need to know. It’ll also save you from having to fill out a lot of paperwork, and you most likely won’t even need an appraisal! The FHA Streamline Refinance program helps borrowers refinance their current FHA loan more quickly and at a lower rate. If you’re looking to refinance your existing FHA loan, then you may want to consider an FHA Streamline.

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