Take advantage of low market rates and refinance to a loan that better suits your current needs. Are you owing more on your mortgage than your home is worth? Do you want to reduce your monthly mortgage payments? If this sounds like your situation, the FHA Streamline Refinance could be your best mortgage option.
The refinance process is quick and easy since you’re already an FHA borrower with limited documentation needed
You won’t have to take the time for a new home appraisal for a refinance and credit requirements are lower than a conventional refinance
If your finances have improved since you first got the loan, you may be able to qualify for a lower interest rate or change your loan terms
To qualify for an FHA Streamline Refinance, you need to be a current FHA customer. You must also be up-to-date on your mortgage payments for the past 6-12 months. Additionally, the FHA requires that you have lived in the property for at least 6 months and that it is your primary residence. The good news is that a full credit check is not required, although a lender may request information to verify your income and employment.
Yes, FHA Streamlines no longer have an “allowance” for closing costs. These costs can range from $1,500 to $4,000, depending on the lender and the loan amount being refinanced.
Compared to a traditional refinance, the streamline process requires minimal paperwork.
You may need to provide:
• Proof of income and employment (not always required)
• Recent pay stubs or tax returns
• Documentation of homeowner’s insurance
