FHA Streamline Refinance
FHA streamline refinances limited requirements of the FHA streamline refinance. Conventional refinances require a thorough review of income, assets, credit score and more. With the FHA streamline refinance the process is simplified and makes refinancing your current existing FHA loan a breeze.
Why it’s called the Streamline Refinance
Streamline the definition of streamline is to make a process simple, cutting out as many additional requirements and providing borrowers with the lower available rate. Refinance your 30 or 15 year term existing FHA loan to a lower interest rate with no appraisal, job verification or credit score.
The best things about the FHA Streamline Refinance
- Convert your adjustable rate mortgage to a fixed-rate mortgage and stop counting the days your initial low payment rises.
- Income is not assessed and that portion of the application not required
- Application tip: The Borrower’s application must indicate their income source; however, the income is not required to be listed on the
application, just the source of the income.
- Application tip: The Borrower’s application must indicate their income source; however, the income is not required to be listed on the
- Assets are not required unless funds are need to close the transaction
- No appraisal is needed – this is a major time saver.
FHA Streamline Refinance
In order to qualify for the FHA streamline refinance you must provide financial diligence and be current on your mortgage. Other requirement include:
Occupancy guidelines in regards to the FHA Streamline Refinance
- 1 unit owner occupied and not owner occupied single family residence
- 2 – 4 units owner occupied
Late Payments and Subordinate financing
- You are allowed only 1 30-day late
- Are not allowed to have any 30 day late payments for three months prior to loan application
- Are not allowed to have any 60 day late payments
- Are not allowed to have any 90 day late payments
- Are not allowed to have any120 day late payments
- New Subordinate financing is not allowed, which mean you cannot apply for a home equity line of credit (HELOC) along with an FHA streamline refinance
FHA Streamline Refinances do not allow cash-out
The “cash-out” question arises frequently when a borrower is considering refinancing their mortgage, so it’s a fair question. But the long answer is, NO. You are not allowed to take cash out from your equity FHA streamline refinance.