FHA Streamline Refinance Overview

FHA Streamline Refinance is a program that allows people with FHA loans to refinance their loans. This is the most straightforward way to refinance an FHA mortgage loan. FHA Streamline Refinance is different from traditional refinances. Borrowers can refinance with no need to prove their income or assets.

Depending on the amount you have paid, an appraisal may not be necessary. This program has several advantages. It allows you to have a loan-to-value ratio that is unlimited. Therefore, if you are severely underwater, you still may be able to take advantage of record-low mortgage rates by refinancing with an FHA streamline.

Criteria For Qualification

• The refinanced house must be lived in.

• In the last 12 months, you can't have more than two 30-day late payments on an FHA mortgage.

• You have not completed an FHA streamline refinance within the last 6 months.

• FHA doesn't have a minimum credit score for streamline refinances, but your lender may. It is best to have a credit score of at least 620.

FHA Streamline With Appraisal

The advantage of doing an FHA Streamline Refinance with an appraisal is that you can roll your closing costs into the loan. An appraisal is not required if the new loan amount exceeds the original loan amount by 1.5 percentage.

FHA Streamline Without Appraisal

You cannot roll your closing costs into an FHA Streamline refinance that does not require an appraisal. You will need to be ready to pay closing costs out-of-pocket or speak to your lender to see if they are willing to cover them in return for a higher interest rate.