FHA Streamline Refinance
An FHA Streamline Refinance is a way for homeowners with an FHA Home Loan to refinance their home and save money on their monthly payments. The "Streamline" portion refers to the amount of paperwork and documentation involved in this kind of refinance; it does not refer to the amount of time it takes to process the refinance or the costs associated with it.
In order to qualify for an FHA Streamline Refinance, the applying homeowner must meet the following criteria:
- The mortgage to be refinanced must be an FHA insured home loan.
- The mortgage to be refinanced must be in good standing and not late or delinquent.
- The refinance must result in the lowering of the homeowner's monthly payment.
With an FHA Refinance, there is no option to receive cash back. This is because it is intended for people with little debt who will be able to save the money from a lowered monthly payment and use the money for good use elsewhere. If you have a conventional mortgage and want to refinance with an FHA Streamline, you will need to reapply with your original loan provider. This may take longer than the process would take with an FHA Loan, but may result in lower rates and monthly payments.
Lenders may be able to provide a "no cost" FHA Refinance, which incur no out-of-pocket expenses to the borrower. Lenders may also provide a no up-front cost option, where the closing costs of the FHA Refinance are added into the new loan amount. To find out which type of FHA Streamline Refinance is best for your needs, fill out our form to speak with a licensed professional who can assist you in your FHA Refinance.