What Is a FHA Streamline Refinance Loan - Program Guidelines

The FHA Streamline Refinance program gets its name because it allows borrowers to refinance an existing FHA loan to a lower rate more quickly. ... You can reduce the interest rate on your current mortgage without a full credit check, yet you need to have paid your mortgage on time over the last 12 months.

1. What are the requirements for FHA streamline refinance?
2. Do I have to pay closing costs on a FHA streamline refinance?
3. Is FHA streamline refinance worth it?
4. What are the benefits of a FHA streamline?
5. Does FHA Streamline get rid of PMI?
6. How long does it take to close on a FHA streamline refinance?
7. Does streamline refinance affect credit score?
8. When can I get rid of PMI on FHA loan?
9. How much are closing costs on a streamline refinance?

What are the requirements for FHA streamline refinance?

Requirements for FHA Streamline Refinancing

• You must have an existing FHA-insured mortgage.
• You must be current on your mortgage.
• You are allowed no more than one late payment in the past year, and are required to have made the six most recent payments on time.

Do I have to pay closing costs on a FHA streamline refinance?

Do I have to pay closing costs on an FHA Streamline Refinance? The borrower has to pay closing costs on an FHA Streamline Refinance. Unlike other types of refinances, you cannot roll these costs into your loan amount.

Is FHA streamline refinance worth it?

While it might sound too good to be true, the FHA Streamline is a perfectly legit refinance program backed by the Federal Housing Administration. It can offer a simplified, low-doc application process and below-market rates. But you have to be a qualified homeowner with a current FHA loan to use this program.

What are the benefits of a FHA streamline?

The FHA Streamline has five main advantages.

• No appraisal is required. ...
• No verification of income or employment is required. ...
• The process is easier and faster. ...
• Rates are the same as on regular FHA mortges. ...
• There is no prepayment penalty.

Does FHA Streamline get rid of PMI?

If you bought a house with an FHA loan some years back, you may be eligible to cancel your FHA PMI today. ... If your loan balance is 78% of your original purchase price, and you've been paying FHA PMI for 5 years, your lender or service must cancel your mortgage insurance today — by law.

How long does it take to close on a FHA streamline refinance?

How Long Does Streamline Refinance Take? In an ideal situation, a borrower can expect a streamline refinance to be completed anywhere from 30 days to as little as a few weeks. The typical refinance loan process can take 45 to 60 days.

Does streamline refinance affect credit score?

"Except for credit qualifying streamline refinances, FHA does not require a credit report. The lender, however, may require this as part of its credit policy. If a credit score is available, the lender must enter it into FHA Connection (FHAC).

When can I get rid of PMI on FHA loan?

If you currently pay PMI or MIP mortgage insurance, you can get rid of it by refinancing once your home reaches 20% equity. If you're shopping for a new home loan, look for options that allow no PMI even without 20% down.

How much are closing costs on a streamline refinance?

For an FHA streamline refinance, typical closing costs range between $1,500 and $4,000. Though, closing costs can vary widely depending on the lender, borrower characteristics, and the loan amount.