WHAT IS AN FHA STREAMLINE REFINANCE?
FHA Streamline Refinance for homeowners with an existing FHA mortgage. FHA Streamlines allow the home owner to refinance their existing FHA mortgage quickly with minimal requirements.
Do I qualify for an FHA Streamline Refinance?
An FHA Stream line does not require an appraisal. With an FHA Streamline refinance the original purchase price will be used as the current home value regardless of what the current home value may be as determined by current market conditions.
Some of the key features of an FHA Streamline Refinance are:•
- No Appraisal Required
- No Prepayment Penalty
- No Employment Verification Required
- No Income Verification Required
- No Credit Score Verification Required
- No Equity Requirements
In order for you to get an FHA Streamline refinance you must already have an FHA insured mortgage and it cannot be delinquent. The stream must also prove to be a benefit to the home owner by reducing the principle and month and interest payment. Also an FHA Streamline doesn’t allow for any cash or equity can be taken out of the property.
According to www.hud.gov there are a few ways that a lender may offer a streamline mortgage:
Lenders may offer streamline refinances in several ways. Some lenders offer “no cost” refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance. Investment properties (properties which the borrower does not occupy as his or her principal residence) may only be refinanced without an appraisal.
If you are interested in seeing if you qualify for an FHA Streamline mortgage click the button below.