FHA Streamline Refinance
Looking to lower your mortgage rate or change your loan term without the usual hassle? With an FHA Streamline Refinance, you can refinance your existing FHA loan with minimal paperwork and no need for an appraisal in most cases.
Benefits of FHA Streamline Refinance:
- Less paperwork: Simplified process with fewer documents.
- No appraisal: Skip the home valuation.
- Lower rates: Potential to reduce your interest rate.
Explore refinance options and see how you can lower your payments today.
What Is An FHA Streamline Refinance?
An FHA Streamline Refinance is designed for homeowners with an existing FHA loan. It allows you to refinance for a lower interest rate or change your loan term, usually without the need for income verification or an appraisal. It’s quick, efficient, and aimed at lowering your monthly payments.
FHA Streamline Refinance Requirements:
To be eligible for an FHA Streamline Refinance, there are a few basic guidelines:
You must have an existing FHA mortgage.
At least 210 days must have passed since the first payment due on your current FHA loan.
Six months must have passed since the due date of your first payment.
Your mortgage must be current.
No late payments in the last 6 months.
Only one late payment allowed in the past 12 months.
There must be a net tangible benefit.
This could include a lower rate, lower monthly payment, or switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
These guidelines ensure that the FHA Streamline Refinance offers true value to the homeowner, making the process worthwhile.
FHA Streamline Refinance Rates & Terms:
An FHA Streamline Refinance offers flexible terms. You can choose a loan term from 15, 20, 25, or 30 years. Depending on your goals, you can:
Shorten your term: Save on interest by paying off your loan faster.
Keep the same term or extend: Lower your monthly payments by reducing the interest rate or extending the term.
Important considerations:
If you shorten your term by 3 or more years, your new payment can’t increase by more than $50.
If you’re switching from an ARM to a fixed rate, the new rate can’t exceed 2% higher than your old rate.
Need help determining which term fits best? Speak with one of our experts to explore your refinance options.
Pros and Cons of an FHA Streamline Refinance:
Pros:
No appraisal needed: Value of your home isn’t a concern.
Minimal credit checks: Easier qualification.
Quick process: Fewer documents mean faster closing.
Cons:
Closing costs: Typically 2–6% of the loan amount.
No cash-out option: Only for rate and term adjustments.
Mortgage insurance: MIP resets with the new loan.
How To Apply For An FHA Streamline Refinance:
The process for applying for an FHA Streamline is simple:
Find an FHA-Approved Lender: You can shop around for the best lender and don’t need to go back to the original lender of your FHA loan.
Gather Required Documents:
- Current mortgage statement
- FHA mortgage note
- Employment verification and bank statements
Complete the Application: The lender will help you through the underwriting process. Even though it’s simplified, be prepared to provide additional information if needed.
FHA Streamline Refinance FAQs:
Yes, your credit score may take a small hit when lenders do a hard inquiry. However, as long as you make payments on time, your score will recover quickly.
Yes, as long as 210 days have passed between the first payments of your old and new loan, and there is a tangible benefit.
Typically, FHA loans are for primary residences, so you can’t refinance multiple properties using FHA Streamline.
Ready to Refinance?
If you’re looking for a quick, hassle-free way to lower your mortgage payments or lock in a better rate, an FHA Streamline Refinance could be your answer. Lower your mortgage payments today by starting your FHA Streamline Refinance with GoClearPacific. Get expert guidance every step of the way.