Each lender seems to have different “rules” (lenders call them overlays) for the FHA streamline refinance program. Some lenders will require an appraisal, some will require an appraisal only in certain situations and some won’t require an appraisal at all.
Here is an outline of what at least one lender is now requiring for all FHA streamline products according to an announcement made by the lender today.
Current FHA Streamline Requirements (for one lender)
- No appraisal required
- No AVM requirements
- 600 minimum credit score for conforming and high balance loan amounts
- Max LTV/CLTV of 115%
- No income documentation required
- No late payments in the last 12 months
- Must have a current FHA loan
If you are in the market to refinance your house, it is wise to shop multiple lenders who can help you. As long as the lender is FHA approved, they should be able to help you with an FHA streamline, but beware: not all lenders require the same thing. Some lenders will require the above, but other lenders may have different credit score requirements, different appraisal requirements, different CLTV requirements – whatever.
Shopping multiple lenders for an FHA streamline also helps you get the best possible deal when it comes to rates and fees. Interest rates are hovering near record lows, so it is a good idea to take the time and see if you can save some money on your monthly mortgage payment with the FHA streamline.