2017 FHA Streamline Requirements

2017 FHA Streamline Requirements

New 2017 FHA streamline requirements. To qualify for a streamline refinance FHA requires you to currently have an FHA mortgage and your mortgage payments for the last 12 months must have been made on time. If you currently have an FHA mortgage and want to refinance FHA allows you to refinance:

Complete a mortgage application to begin the process
To qualify no mortgage late payments last 12 months
Collection accounts do not have to be paid off
No minimum credit score to qualify
No employment verification
No credit report required
No credit score required
No income verification
No cost FHA refinance
No appraisal required
No asset verification

A borrower is eligible for a FHA streamline refinance without credit qualifying if they has owned the property for at least six (6) months. Individuals may be deleted from the title on a streamline refinance if the remaining owner-occupant can demonstrate that he/she has made the mortgage payments during this time.

To qualify for a streamline refinance there must be a net tangible benefit to the homeowner. Net tangible benefit is defined as a 5% reduction to the principal and interest (P&I) of the mortgage payment plus the annual mortgage insurance premium (MIP) or refinancing from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage.

the borrower must have made at least six payments on the FHA-insured
mortgage being refinanced at least six full months must have passed since the first payment due date of the refinanced mortgage
at least 210 days must have passed from the closing date of the mortgage being refinanced

FHA streamline refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage. The new loan must involve no cash back to the borrower, except for minor adjustments at closing, not to exceed $500.

New FHA guidelines does not allow your new mortgage balance to increase. FHA does not require an appraisal on a streamline refinance. FHA does not require a credit report. No minimum credit score is required. Effective after April 18, 2011, FHA no longer requires employment and income verification on streamline refinance loans.

A 203(k) rehabilitation mortgage may be refinanced into a streamline mortgage after all work is complete.

The rehabilitation work is considered complete by: