FHA Streamline Refinance
The refinance loan allows you to lower both your interest rate and principal payment by leveraging your existing FHA mortgage. The advantage of this is that you are not required to obtain an additional appraisal, provide bank or asset statements, or submit a credit report. Instead, the underwriters at your lender can utilize all the relevant paperwork from your original FHA loan. This streamlined process significantly reduces the amount of paperwork involved, making the loan process quick and efficient.
Why an FHA Streamline Refinance Loan?
Better Interest Rate
The FHA Streamline Refinance loan eliminates the need for a new appraisal and only requires a mortgage-only credit report. This streamlined approach not only expedites the refinance process but also reduces associated costs. In fact, you may be eligible to complete the refinance without any out-of-pocket expenses.
Low or No Upfront Cost
The FHA Streamline Refinance loan offers the advantage of not requiring an additional appraisal or credit check. This streamlined approach not only expedites the refinance process but also reduces associated costs. In fact, you may be eligible to complete the refinance without any out-of-pocket expenses.
Lower Monthly Payments
By opting for an FHA Streamline Refinance loan, you essentially reset your mortgage, which may result in an extension of your loan term. However, in exchange for the extension, you can enjoy reduced monthly payments.
Existing FHA Mortgages
To be eligible for an FHA Streamline Refinance loan, you must currently have an FHA home loan. This requirement entails having held the FHA loan for a minimum of 210 days and making at least six timely monthly payments. These criteria ensure that homeowners meet certain time and payment obligations before being eligible for the streamlined refinancing option.