Mortgage Article

An FHA Streamline Refinance is a refinancing option available to homeowners with an existing FHA loan. It is designed to simplify the refinancing process by reducing the amount of paperwork and credit documentation required. Here are some key points about it:

1. Simplified Process:

The FHA Streamline Refinance is known for its relatively quick and easy process compared to traditional refinancing. In some cases, it doesn’t require a new appraisal, credit check, or income verification.

2. Eligibility:

To qualify, the mortgage being refinanced must already be FHA-insured, and the borrower must be current on their payments.

3. Net Tangible Benefit:

The refinance must result in a tangible benefit to the borrower, such as a lower interest rate or a more stable loan type (e.g., switching from an adjustable-rate mortgage to a fixed-rate mortgage)

4. No Cash-Out:

Borrowers cannot take out more than $500 in cash from the refinance.

5. Types of Streamline Refinances:

There are two types - credit-qualifying and non-credit-qualifying. The former requires income documentation and a credit check, while the latter does not.