The FHA Streamline should be your first choice if you currently have an FHA home loan and want to refinance at a lower rate.
If the FHA insures your mortgage, you may be able to apply for an FHA Streamline Refinance. Like any other mortgage product, you have to meet specific requirements to qualify, and it, therefore, helps to understand what to expect before you get started.
What is an FHA Streamline Refinance?
This program is designed to help homeowners save time and money during the refinancing process. Unlike a traditional refinance, the FHA streamline program does not require as much documentation, and the underwriting process generally takes less time. A homeowner doesn’t have to verify their income or employment and credit scores aren’t typically taken into consideration. One other difference is that a home appraisal is not necessary.
There are a number of benefits of the FHA Streamline program, some of them include:
- Low refinance rates
- Lower MIP rates
- MIP refunds
- No appraisal necessary
- No verification of income
- No credit check
While it’s easy to qualify for, this program does not allow you to roll closing costs into the amount of the loan. In addition, with an FHA Streamline, you cannot do a cash-out refinance.
Qualifications for a Streamline Refinance
Like all mortgage products, there are a few basic requirements a homeowner must meet to qualify for the streamline refinance. Some of these requirements include:
- You must have an existing FHA loan
- You can’t be late on a mortgage payment
- Have to have had the mortgage for at least 210 days
- It must make sense financially
- Usually, you have to lower your rate by at least 0.50%
The FHA Streamline should be your first choice if you currently have an FHA home loan and want to refinance at a lower rate. There are no other products that match its benefits.
Is This the Right Refinance Product for You?
Ask your Better Rate Mortgage expert for more details about the FHA Streamline Refinance program. Our group of mortgage professionals is proud to be able to offer a full line of FHA loans to St. Louis homebuyers.