Qualify for a Streamline Refinance
The FHA Streamline program is a mortgage refinance for people who have a current FHA insured mortgage. It is the simplest and easiest way to refinance an FHA loan. Unlike a traditional refinance a streamline refinance program allows a borrower to refinance without having to verify their income and assets. In most cases, an appraisal is not required. One of the most advantageous aspects of this program is that it allows for an unlimited loan-to-value ratio. FHA Streamline refinances can help homeowners lower their monthly mortgage payments and interest rates.
What do you need to qualify for an FHA Streamline loan? First, you need an existing FHA mortgage, if you don't have an FHA loan we can help you explore other refinance options, options include, conventional refinancing, applying for a full FHA refinance loan, or possibly, a VA mortgage refinance.
- You must currently be living in the house you are refinancing.
- You can’t have made more than two, 30-day late payments on your existing FHA mortgage in the past 12 months and must now be current on your monthly payments.
- You must have owned the property for at least six months before you can qualify.
- You have not completed as streamline refinance in the past six months.
- FHA does not have a minimum credit score required for this type of refinance, but some mortgage lenders do have their own requirements. Generally, it’s best if you have a FICO score of 620 or above.
- A mortgage insurance premium will be included in your loan amount. It is important to compare different loan programs, such as a conventional loan to see if there are better options for your situation.
- You do not need to lower your interest rate much to benefit from a streamline loan. However, there must be a net tangible benefit in order to qualify.
- Streamline loans do not require an appraisal, but a no-appraisal loan cannot exceed your current principal loan amount.
- Closing costs must be paid by the mortgage broker, paid out of pocket, or arranged for through a "no-cost" FHA Streamline loan, this will typically have slightly higher interest rates. You may also choose to include the closing costs into your loan a "with appraisal" FHA loan. In these cases, you must have enough equity in the home to cover the amount of the closing costs.