- What is an FHA Streamline Refinance?
- What are the Qualifications?
- Using an FHA Streamline with or without an Appraisal
- FHA Streamline Refinance Quotes
What is an FHA Streamline Refinance?
The FHA Streamline Refinance Program is a home loan program designed specifically for borrowers who already have an FHA Mortgage Loan. It is known to be one of the easiest ways to refinance your FHA Mortgage. Unlike other traditional refinancing options, an FHA streamline refinance will allow you to refinance your FHA mortgage without needing to verify your income and assets. Appraisals can also be avoided depending on the amount left to your original FHA mortgage. Even if borrowers are underwater in their current FHA mortgage, they can still take advantage of the FHA streamline refinance and lower their interest rates.
What are the Qualifications?
Qualifications will almost always differ from lender to lender, so it’s important to shop around to different lenders in order to find the best options that fit your needs. Here are some of the basic qualifications for an FHA Streamline Refinance:
- No more than two late 30-day late payments towards your current mortgage in the past year.
- The house you’re refinancing MUST where you reside.
- A minimum credit score of 620 is required (depending on the lender).
- You must have not applied for an FHA streamline refinance in the last 6 months.
**Keep in mind, that although the FHA program doesn’t have a minimum credit requirement for borrowers to meet, lenders will usually require a credit score of at least 620 or higher for a borrower to be eligible for their FHA streamline refinance program.**
FHA Streamline Refinance: With or Without an Appraisal
One major advantage to using the FHA streamline Refinance with an is, you can roll your closing costs into your new mortgage and you are only REQUIRED to get an appraisal if your new loan amount were to exceed your original loan amount by more than 1.5 percent. If you use the FHA streamline refinance without needing to get an appraisal you won’t be able to roll your closing costs into your new mortgage like you can with an appraisal and you will need to be prepared to pay your closing costs out of pocket, but you can always discuss your options with your lender. Lenders will cover closing costs in exchange for a higher interest rate.
Finding a Lender and Getting Quotes
It’s very important that you shop around for the
best rates and fees for an
FHA Streamline Refinance. Ask lenders many questions and receive a free quote from them and then compare to find the best rate to fit your needs. Keep in mind that the quoted rate may not be the exact rate you end up with.
Find a lender who is FHA qualified and who has a strong track record of funding FHA loans. The more knowledgeable your lender is about FHA the easier the loan process will be, since they will know all the ins and outs to the loan. Click below to start your lender search, it’s quick, easy and it’s free.
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