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FHA Streamline

FHA Streamline Refinance: Simpler, Quicker, More Profitable

fha-streamline-refinanceIf you are a homeowner who presently has an FHA mortgage, you could be eligible for an FHA Streamline refinance and benefit from current low home loan interest rates. The term “Streamline” means there is small paperwork to supply the FHA-approved lender. Thus, you can have a quicker and simpler refinance closing! The quicker you catch the low home loan interest rates, the better, right?

An FHA Streamline refinance typically has the following traits:

  • No minimum credit score requirements, as with some other FHA programs
  • No asset documentation such as bank statements, retirement accounts, etc.
  • An Appraisal may not be necessary. If an appraisal is required for an FHA Streamline, the maximum loan is restricted to 97.75%. If an appraisal is not used, there is not a maximum loan restriction.
  • Upfront mortgage insurance is decreased to 1.5% of the base loan amount (instead of 1.75% for a normal FHA refinance – not streamlined).
  • Any cash from proceeds to the borrower is restricted to $500.

When it comes to FHA refinancing, you as a homeowner should know this:

  • The mortgage to be paid off must be an FHA insured mortgage.
  • The borrower cannot have had a 30 day or greater mortgage late payment in the previous 12 months.
  • Non-occupant co-borrowers are not allowed.
  • The new loan amount is subject to FHA maximum loan limits in your area (geographically)
  • If a property has been converted to an investment property it can still qualify for a FHA streamline refinance if the existing mortgage is an FHA loan.

To make sure you get your FHA refinance done correctly, use only FHA HUD-Approved lenders. Those FHA HUD-Approved lenders generally have their own “in-house” FHA underwriters. This speeds up the time for approval and closing. Timing is crucial in today’s market as rate go up and down quickly.

If you’re interested in securing FHA Streamline refinances, to get started, you will need to gather the following information for a loan officer to review: First, you have to gather the Subject Property Address (that is, where do you live). Second, get an estimation of your property taxes and insurance. Third, find out how much is your original FHA loans balance from when you got the mortgage. Fourth, how much is your current FHA loan balance? Finally, estimate your home value. While appraisal may not be required, it is better to be prepared for it. Seeing that using the FHA Streamline could help you getting new loan in such an simple and quicker way, I should tell this is the time to do it. Pleased gathering!

Read also: FHA Financing and FHA 203K

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This entry was posted on Sunday, March 8th, 2009 at 12:14 am and is filed under FHA Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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One Response to “FHA Streamline”

  1. Complete tips and guide for FHA 203K LOANS? Here's FHA 203K LOANS information for you! | FHA Loan Rates says:
    April 8, 2009 at 2:10 pm

    [...] FHA (Federal Housing Administration) under the HUD (House and Urban Development) made FHA 203k Streamline Rehab loans to help people who want to buy a home that needs repairs or want to refinance their [...]

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Tags: fha hud,  fha insured mortgage,  FHA Loan Limits,  FHA Loans,  FHA Refinance,  fha streamline,  fha streamline refinance,  FHA underwriters,  FHA-approved lender,  low home loan interest rates, 

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