FHA Streamline Refinance: Popular When Rates Are Low
The FHA streamline refinance program is extremely popular for many homeowners who currently have an FHA loan when interest rates dip from previous levels. The FHA streamline refinance allows people who currently have an FHA loan to refinance into a lower rate (when they are available) without having to completely re-qualify for a new loan. The documentation required for the FHA streamline refinance is less than when someone has to fully qualify in order to get an FHA loan in the first place.
FHA Streamline Guidelines and Benefits
Guidelines for the FHA streamline program will change from time to time, but largely the benefits remain the same – the homeowner saves money on their monthly mortgage payment thanks to lowering the interest rate on the loan. Highlights of the FHA streamline refinance program include:
- You must currently live in the property being refinanced
- You can’t have more than 2 30-day late payments on your mortgage in the last 12 months – and some lenders will allow one or zero late payments
- Closing costs for the program can be rolled into the new FHA loan
- The FHA streamline program may (or may not) require that you get an FHA appraisal done on your property
- FHA streamline requirements state that you must pay UFMIP at the new factor, but will allow you to apply any of the un-used UFMIP in your account toward the payment
The FHA streamline refinance is one of the easier loans for loan officers to get done – it is designed to be simple. The best way to find out more about the FHA streamline refinance program is to get in touch with a loan officer at an FHA approved lender.