FHA Streamline Refinance Program
An FHA Streamline Refinance Loan allows homeowners to replace their current mortgage with a new, larger loan, enabling them to receive the difference in cash.
The FHA Streamline Refinance Program lets FHA Borrowers refinance current loans to a lower interest rate or to a different type of mortgage (fixed- or adjustable-rate mortgage).
(The term ‘Streamline Refinance‘ refers to the lesser amount of documentation that the borrowers must provide.)
Program Features:
- No Appraisal: The FHA doesn’t require an appraisal for a streamline refinance, which can be beneficial for borrowers with little or no equity.
- No income or employment verification: Lenders can approve a streamline refinance without checking a borrower’s income or employment.
- Reduced interest rate: A streamline refinance can help you lower your mortgage interest rate.
- Reduced payment: A streamline refinance can lower your principal payment.
- Refund of mortgage insurance premium: Homeowners may be refunded up to 68% of their prepaid mortgage insurance premium.
- Switch to a fixed-rate mortgage: You can refinance to a more predictable FHA fixed-rate mortgage.
- Refinance without a credit check: Credit score verification is waived, although many lenders add on a minimum credit score requirement.
- Refinance into the same type of mortgage: You’ll refinance into the same type of mortgage, like from one FHA loan into another FHA loan.
The most important step in securing an FHA Streamline Refinance Loan is to get an FHA Streamline Pre-Approval. This gives the borrower the peace of mind that comes with knowing that your mortgage loan has been approved & your interest rate has been ‘locked’.