Even though FHA streamline refinance changes changed last fall, it is still possible to do an FHA streamline without an appraisal.
Yes, HUD made it to where if a borrower opted to not have an appraisal it meant that they can’t finance their closing costs — they have to bring them to close, but with rates as low as they are now it is possible that you can opt for a slightly higher than “par” rate and have your mortgage lender pay for the closing costs.
This means that it doesn’t mean if your house is under water because there is no appraisal required on a FHA streamline refinance!
In addition, if you have had an FHA loan for less than 36 months, you may have a positive balance in your UFMIP account that can be applied toward setting up your new UFMIP account.
FHA Streamline Without Appraisal
With an FHA streamline without appraisal, you can reduce your closing costs because there is no appraisal cost and your lender can cover some of the costs and most of the people who do the FHA streamline refinance without an appraisal bring their mortgage payment that they would have deferred (some people call it skip) to close.
If you are thinking about participating in the FHA streamline refinance program, FHA UFMIP is scheduled to change soon (in weeks) and the UFMIP is going to go down while the monthly MI is going to go up.
And it will be more expensive to have an FHA loan.
So there is no better time to act than now to reduce your current interest rate through the FHA streamline refinance program without an appraisal.