Question:

What is an FHA streamline refinance mortgage?

Answer:

FHA streamline refinance mortgage is allowed for existing FHA loans. FHA streamline refinance has been available since 1980's. The requirements of a streamline refinance of an FHA mortgage are similar to any streamline refinance.

FHA Streamline Refinance Mortgage Basic Features

  • It is required that lower rate and mortgage payment is achieved with the FHA streamline refi.
  • The old FHA mortgage cannot be delinquent to be eligible for an FHA streamline refinance.
  • The lender needs to do less paperwork and underwriting.
  • The refinanced mortgage is an FHA loan.
  • No cashout is allowed with an FHA streamline refinance mortgage.
  • If the borrower doesn't cover closing costs, the lender may include them in the loan by charging higher rate, or roll them in the new FHA refinanced mortgage.
  • If no appraisal is provided, the amount of the new FHA streamline refinance mortgage cannot exceed the old FHA loan amount. Investment properties cannot be refinanced without an appraisal.
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