As I have stated in so many of my blogs, FHA has some great financing options to help those home owners that tend to have less than perfect credit. FHA has 2 types of streamline refinance options.  The FHA streamline refinance with an appraisal and without an appraisal. 

Two main features of these streamline refinances is that you don't need to qualify in regards to both income and credit. The only thing in regards to credit is that the borrower is current and up to date on their mortgage. There are some lenders that sometimes want a clean mortgage history in the last twelve months, but this is not a HUD requirement.

     1. Streamline refinance with an appraisal : This is where you can include your closing costs within the loan amount. There are two types of calculations to achieve this type of refinance. The lower of the two would be used.

• Maximum loan-to-value percentages multiplied by the appraised value, exclusive of closing costs. 

• By adding the existing first mortgage lien, the closing costs, accrued late charges, escrow shortages, and any pre-paid items minus any refund of the upfront MIP (mortgage insurance premium).

     2. Streamline refinance without an appraisal : The calculation for this is to include the original principal balance of an existing FHA mortgage to include any new upfront MIP.

These 2 types of refinancing are only for primary residences only. Investment properties that were originally bought as a primary residence, may only be refinanced without an appraisal to only include the outstanding principal and nothing more.

If you have a 2nd mortgage or any junior liens older than twelve months old, then this would be considered a regular refinance and could not be done as a streamline refinance. And then you would have to qualify with income and credit.

FHA programs and insight : 

• FHA -- Non-Occupant Co-Borrowers, are they allowed?
  

• FHA refinancing cash-out -- knowing your options -- Part 1 of 2

• FHA Streamline Refinances -- knowing your options -- Part 2 of 2

The First Time Homebuyer Series :

• First Time Homebuyer Tips : FHA - Conventional - VA - Subprime -- Part 1 of 4

• First Time Homebuyer Tips : Getting Qualified & Knowing your Credit -- Part 2 of 4

• First Time Homebuyer Tips : FHA, is the best mortgage program? -- Best Programs & Why -- Part 3 of 4

• First Time Homebuyer Tips : Understanding the Total Process -- Part 4 of4

• Renting vs Buying -- Understanding the difference........ FHA? -- Part 1 of 3
  

• Renting vs Buying -- Showing the difference in $$ -- Part 2 of 3

• Renting vs Buying -- Knowing your loan options -- Part 3 of 3

Buying Tips :

• What's behind a home inspection.....

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For more information on FHA cash out refinancing, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options