"Streamline" is not a program or product.  It refers to the amount of documentation and underwriting that needs to be performed by the lender.  You may do a FHA streamline with your current lender or a any lender for that matter.  You do not have to go through your current lender.  FHA has permitted streamline refinances since the early 1980's.

The basic requirements of a streamline refinance are:

• The current mortgage must already be a FHA loan.
• The mortgage to be refinanced should be current (not delinquent).
• The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
• No cash may be taken out using the streamline refinance process (up to $500 is permitted).

What don't you need on a streamline refinance?:

• There is no income verification.
• There is no verification of assets.
• There does not need to be an appraisal
• There is no need for the lender to pull credit.  However, mortgage history will need to be verified.

Many lenders will pull your credit to verify mortgage history.  For my company, If the mortgage is not serviced by Wells Fargo, Prosperity permits 2x30 and 1x60 on the mortgage history within the last 12 months.   If serviced by Wells Fargo, the current loan need only be current.

Many loan officers confuse their company's guidelines for FHA guidelines.  There is no minimum credit score for FHA streamlines.

Lenders may offer the several ways to streamline.  Some lenders offer "no cost" refinances by charging a higher interest rate on the new loan than if the borrower financed or paid closing costs in cash.  From this premium, the lender pays any closing costs that are incurred on the transaction.

Lenders may offer streamline refinances and include the closing costs into the new mortgage amount.  This can only be done if there is sufficient equity in the property.  This is known as a "streamline refinance with an appraisal".  You can refinance 97.75% of the appraised value.

Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount.   Closing costs, prepaid expenses, and  Upfront Mortgage Insurance may be included in the loan up to the original loan amount.  Borrowers may bring the balance that is unable to be financed to settlement and it does not need to be verified.  There is no maximum LTV on "streamline without appraisals".

Prosperity will perform streamline finances on FHA loans up to $417,000.  If the FHA loan is greater than $417,000, the streamline process is not available.

If you have any questions or would like to see if you qualify for a streamline refinance, please feel free to contact me.

Bob Lowery

Office: 410-248-1762

Cell: 443-653-1720

bob.lowery@prosperitymortgage.com

Feel Free to visit    www.marylandhomeloansonline.com   to sign up for rate monitoring or to get pre-approved on line.