A mortgage originator out in Indiana wrote a decent summary of FHA streamlines in an article recently. Here is an excerpt:
FHA has permitted streamline refinances on FHA insured mortgages since the early 1980’s. The tremendous feature of the streamline it is a reduced documentation loan with no statement of income or assets.
Some of the basics of a streamline refinance are:
1. The mortgage to be refinanced must already be FHA insured.
2. The mortgage to be refinanced should be current and not over 30 days delinquent more than once in the last year.
3. The benefit of the refinance is to result in lowering your monthly principal and interest payments.
4. No cash may be taken out on mortgages refinanced using the streamline process, however you may receive up to $500.FHA Streamline can be done in one of two ways
1. Streamline Refinance with an Appraisal:
2. Streamline Refinance without an Appraisal:Note: The Streamline without the appraisal you (may) be required to bring to closing due to the final calculation from your mortgage pay-off.
If you have an FHA loan with a rate above 6% contact us about streamlining your loan to a better rate.