If your FHA mortgage is up-to-date, chances are you are eligible for this refinancing option.
There are many advantages of the FHA streamline refinance program for responsible homeowners besides a reduced interest rate on their monthly payment. Simplicity is a major benefit—FHA Streamline does not require an appraisal and many times it does not require a full credit check or income verification. When it comes to refinancing, it does not get much simpler. Maybe a tad simpler, when you have your Residential Home Mortgage expert guiding you through the process.
FHA Streamline Guidelines
FHA Streamline loans are available to borrowers who have existing FHA mortgages. The goal of the refinance is to give you a tangible financial benefit. You have the ability to lower your interest rate, lower your payment or lower your repayment term.
No Appraisal. The FHA Streamline does not require an appraisal. Since the Streamline loan amount is based on what you owe (outstanding principal balance) and not the home’s current value, you may be able to refinance even if the value of your house has declined. Did you know that you can apply for an FHA streamline loan online or over the phone? It only takes minutes, so don’t hesitate to start this refinancing option.
No Cash Back. The FHA Streamline will only allow you to take $500 cash out. If you’re interested about the FHA streamline refinance program, you could lower your monthly payments, which can give you more money on hand every month to be put toward whatever you’d like. If you need the cash out, our team can provide alternative programs for you.
Refinancing Must Be in The Borrower’s Best Interest
The FHA Streamline refinance program wants what’s best for you, so the borrower must receive a net tangible benefit, per the FHA guidelines. If you reduce the term of your loan, the new interest rate cannot be higher than the existing rate and the new mortgage payment cannot exceed your old by more than $50. The Streamline can also allow you to convert from an ARM into a fixed-rate mortgage.
The lender you choose will affect your ability to get approved for an FHA Streamline loan and how much it will really cost. For example, closing costs cannot be included in the new mortgage amount. As you look for your new mortgage, make sure you get all the pertinent information from your lender to make an informed decision.
FHA Streamline Refinance Eligibility
Keeping in-line with its intention of providing a simplified experience for borrowers, the FHA Streamline refinance program is easy to qualify for if you currently have an FHA mortgage in good standing.
To qualify for a new FHA Streamline loan, you must have the following:
Current Mortgage Must Be an FHA Loan - The Streamline refinance program is designed to lower rates on existing FHA loans, so your mortgage must already be FHA insured to take advantage of this opportunity.
Mortgage Must Be Current - You haven’t missed a single payment. Great news! You’re one step closer to qualifying. Additionally, you must have made at least six on-time monthly payments (mortgage is more than 210 days old).
Late payments count against you, although there are some exceptions to that rule. If your loan is less than a year old, and you have not been more than 30 days late on a payment, you are not automatically disqualified from the program. If you have questions about these exceptions, a RHMC loan specialist is here to help.
Ready to Mortgage Smartly™?
The FHA Streamline program is designed to be seamless; however, it is important to work with an approved lender to ensure you are getting the best rate. Residential Home Mortgage Corporation offers the lowest rates with exceptional customer service. We promise we will make your transition to a Streamline loan a breeze. Let’s partner together and mortgage smartly.
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