This article actually came from our blog, but I thought it was good to post it here. Depending on where your rate is, an FHA streamline refinance may be beneficial to you.
An FHA streamline refinance is a type of mortgage refinancing program offered by the Federal Housing Authority (FHA) to homeowners with an FHA-insured mortgage. The streamline refinance process simplifies the refinancing process and makes it easier and faster for borrowers to obtain a lower interest rate and monthly mortgage payment.
FHA Streamline Eligibility
To be eligible for an FHA streamline refinance, borrowers must meet the following criteria:
- Must have an existing FHA-insured mortgage that is current and in good standing.
- Must have made at least six payments on their FHA home loan.
- Must demonstrate a “net tangible benefit” from the refinance, meaning that the new mortgage will result in lower monthly payments or a lower interest rate than the existing mortgage.
- Must not have missed any payments on the existing mortgage within the past six months and must not have more than one late payment in the past year.
- Must not be delinquent on any federal debt, including student loans or tax obligations.
- Must meet the lender’s credit and income requirements.
It’s a good idea to shop a few lenders. Shopping around allows you to compare offers from different lenders to find the best terms for your situation. It’s important to note that the FHA streamline program does not require an appraisal, income verification, or credit check. However, individual lenders may have additional requirements beyond what the FHA requires, so shopping around is essential.
See the rest of the article at FHA Streamline Refinance: Benefits and Eligibility