Streamline Refinancing 

 If we told you the loan process is an easy fun one, we’d not be telling the whole truth, but the FHA Streamline takes a lot of the stress out of the equation!

The FHA “Streamline” refinance option is a remarkable tool for eligible borrowers with an existing Home Loan looking to obtain substantial savings and benefits. A FHA Streamline loan is used to refinance a property that you already have an FHA Mortgage Loan on. This is used strictly for FHA to FHA refinances. It is similar to other types of mortgages in that you can get 15, 20, or 30 year terms. Where it differs is the streamlined process. This is one of the better options for refinancing when you do not have a lot of equity built up in your home, but allows you to refinance and take advantage of historically low rates.

This is a great quick loan option low documentation needs, no income and asset verification requirements, as well as not requiring an appraisal. Not requiring an appraisal can be a very valuable feature if you don’t yet have a lot of built up equity or if your house is possibly worth less than your current mortgage. The value is calculated off of your original purchase price.

Here are some things that you need to know about the FHA Streamline Loan

• No appraisal is required
• Minimal Documentation Required – much less paperwork required than a traditional FHA mortgage.
• All costs for the loan are included in the new loan, so there is no money out of pocket unless you choose to pay the FHA Upfront Mortgage Insurance Premium (UFMIP) upfront.
• A mortgage only credit report is needed to verify no late payments on the mortgage over the last 12 months
• You must have owned the home at least 210 days
• The most recent 6 months mortgage payments must have been paid in time
• You may NOT receive any cash from the loan proceeds.
• You may NOT refinance any other loans or second mortgages with the FHA Streamline. If you have a current second mortgage, the lien holder must agree to subordinate the loan (take a second lien position to the 1st mortgage) so that the new FHA loan will be the first mortgage.
• You must occupy the home as your primary residence.
• If you are refinancing from an existing FHA ARM loan to a FHA fixed rate loan, the interest rate may increase

Start the application process with one of our professionals at FHAtheFairway today! Call or click below to get started!