FHA Loans - Streamline Refinance Mortgages
FHA Streamline Refinance is a refinance program created by the HUD in the early 80's. The term "streamline" only refers to the lack of documentation and underwriting, that the lender needs to approve the refinance. A common misconception is that there is little to no cost, which isn’t true. Often times, the borrower will roll the closing cost of the FHA Streamline Refinance mortgage into the life of the loan. A few of the requirements for a FHA Loans streamline refinance are:
- You must currently hold a FHA Home loan on the property
- The current FHA Loan can't be delinquent (not behind on payments)
- There needs to be a benefit to the homeowner...i.e. lower monthly payments or lower interest rate
- Unfortunately the FHA doesn’t allow homeowners to take cash out using the FHA streamline refinance program.
FHA Streamline refinance programs are offered in several formats. FHA LOAN Lending.com offers a "zero out of pocket" refinance. We can offer this by slightly increasing the monthly interest rate, but still dramatically lower than your current rate to offset the fees incurred at closing.
You may also "roll" your closing cost into your new FHA streamline refinance. In most cases this is a good option, unless you don’t have enough equity in your existing property. However, we typically only need one or two percent of the property’s value as determined by an official FHA home loan appraisal. A Streamline refinance may also be approved without any appraisals, but the loan must not surpass the current principal owed.
If you have any other questions about FHA Streamline refinance mortgages, please Contact Us, or fill out a no obligation quote. We are one of the Nation’s leaders in FHA Loans!
