What is an FHA Streamline Refinance Loan?
An FHA streamline refinance loan is a fast and easy program which allows you to refinance your existing FHA mortgage with less paperwork, low rates and no appraisal. FHA Streamline Rates can be extremely competitive vs non government loan rates.
FHA Streamline Refinance Benefits
- FHA Streamline Rates are the same as the purchase FHA home loans.
- A Streamline FHA Refinance is fast and easy because there is less documentation required.
- FHA mortgages (even the Streamline Refinance) never have pre-payment penalties.
- No verification of employment or income is required.
- No appraisal is required. The FHA will simply use your original purchase price as the value.
- No pre-payment penalty. This means you can refinance out of this program or sell your home without any concern about a penalty.
- No official credit score requirement by the FHA. However, some lenders may impose their own credit score minimums.
FHA Streamline Refinance Program Guidelines or Requirements
- The home must still be your primary residence
- The mortgage you are refinancing must already be an FHA insured loan.
- The mortgage being refinance must also be current with no more than one late payment over the past 12 months.
- If your current FHA loan is an ARM, you need to be out of the introductory rate before you can refinance with a streamline program.
- Cash out of $500 or more during the refinance process is not permitted.
- There must be a net tangible benefit to the borrower. Meaning the payment must decline, the interest rate must decline, or the term must be reduced. Another benefit could be going from a 30yr to a 15yr loan thus paying off your loan sooner.
FHA Streamline Refinance Costs
The costs are virtually the same as a traditional FHA loan. However, you will not have the cost of the appraisal. Some lenders may offer a no closing cost (no out of pocket) program. However, to do that they would slightly inflate the rate to cover those costs because they would have to pay them on your behalf.
FHA Cash Out Refinance
If you need to cash out some equity to do some home improvements or even consolidate debt, you should consider an FHA cash out refinance loan to accomplish this. Our lenders can help answer all of your questions about this option.
To see what the FHA mortgage loan limits are in your area, click on the FHA Loan Limit Calculator.
FHA Streamline Refinance Frequently Asked Questions – FHA Streamline Rate FAQ
Q: What is a net tangible benefit?
A: It means the borrower must realize a benefit in a reduction of the rate, the monthly payment or in the term of the loan.
Q: What is an FHA loan?
A: It is a loan that is insured by the Federal Housing Administration and offers great terms for many borrowers.
Q: What are the FHA Streamline Refinance Rates today?
A: The rates are extremely competitive and even though you are providing less documentation, the rates are the same as other FHA loans.
Q: Where can I find approved FHA lenders in my area?
A: We recommend that you click to connect with an FHA lender here . We have already done the lender research for you.
Q: What is the FHA Loan limit in my area?
A: We recommend that you discuss this with one of our lenders or click the link above where you can research the limits in your area.
Q: Can I get an FHA loan with bad credit?
A: Yes, the good news is that for this program there is no credit score requirement.
Listing of Some FHA Streamline Refinance Lenders – FHA Lenders
We are able to help you to find a low FHA Streamline rate with the best FHA lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.
Hopefully this provided you with enough information on FHA loans to help you to move forward with an FHA Streamline Refinance Rate Quote.