FHA Streamline Refinance
Want to lower your monthly FHA mortgage payments? An FHA Streamline Refinance may be the solution for you. This refinance loan is designed for homeowners with an FHA loan to make the process quick and easy.
What is an FHA Streamline Refinance?
An FHA mortgage helped you save when you bought your home – and an FHA Streamline Refinance can help you save again. Insured by the Federal Housing Administration (FHA), an FHA Streamline Refinance offers a simplified process to lower your mortgage interest rate and reduce your monthly payments.
What are the benefits of an FHA Streamline Refinance?
Homeowners with an FHA mortgage can improve their finances in multiple ways with an easy refinance experience.
- You can lower your monthly mortgage payment with a reduced interest rate
- You can convert an adjustable-rate into a fixed-rate mortgage
- You can qualify even if you owe more than your home’s value
- You can close quickly through a streamlined process
FHA Streamline Refinance guidelines
While the process may be easy, you must meet certain FHA Streamline Refinance guidelines.
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Only FHA home loans qualify for FHA Streamline Refinancing. You cannot use this program to refinance any other type of mortgage.
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Your FHA Streamline Refinancing must provide a net tangible benefit. The FHA’s definition of a net tangible benefit varies based on the loan being refinanced, interest rate, and/or term of your new FHA loan. We’ll show you if the benefits meet FHA requirements.
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You cannot refinance your FHA home loan too quickly. You must have made at least six payments, be at least six full months from your first payment due date, or at least 210 days from the closing date on your FHA home loan.
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You must have a consistent history of on-time payments. You can’t have any FHA loan payments that were more than 30 days late in the past six months, or more than one payment that was more than 30 days in the past 12 months.
FHA Streamline Refinance FAQs
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That depends on your goals and finances. If you’d like to lower your interest rate or change your FHA mortgage terms, an FHA Streamline Refinance is the best option to save and get a fast, easy process.
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Yes. Closing costs with an FHA Streamline Refinance are the same as most mortgages – typically around 2% to 6% of the loan amount. But you’ll save elsewhere by not needing to pay for a home appraisal.
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With less paperwork and no need for a home appraisal, an FHA Streamline Refinance makes it easier for homeowners with an FHA mortgage to apply for a refinance and close fast through a streamlined process.
