The FHA streamline refinance loan is one of the most popular loans with people who have FHA loans. The FHA streamline was designed to help people lower their interest rate when rates are low with minimal paperwork. From time to time, HUD will make changes to the FHA streamline program and issue the changes in a formal announcement called a Mortgagee Letter.
FHA Streamline Refinance: Payment History Requirements
HUD has updated the requirements about exactly how long you must have currently had your FHA loan before you are eligible for the FHA streamline program. In short, you need to have your FHA loan 6 months before you can start the FHA streamline process to get a new mortgage. From the Mortgagee Letter:
This is a clarification of existing guidance and is effective immediately. On the date of FHA case number assignment:
The mortgagor must have made at least six payments on the FHA-insured mortgage that is being refinanced, and
At least six full months must have passed since the first payment due date of the refinanced mortgage, and
At least 210 days have passed from the closing date of the mortgage being refinanced.
For example, if the FHA case number on the mortgage being refinanced was closed on or before December 1, and if mortgagor’s first payment on that mortgage was due on January 1, the mortgagee may request assignment of an FHA case number for the refinancing mortgage no earlier than July 1.
Are you interested in the FHA streamline program and have more questions? Be sure to ask your loan officer.
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