FHA Streamline

FHA Streamline - Effective on or after April 18, 2011, FHA no longer requires employment and income verification on streamline refinance loans.

No minimum credit score to qualify
No income verification
No appraisal required

FHA changed it's streamline requirements and in order to qualify for a streamline FHA requires you to complete a mortgage application to begin the process. If you currently have an FHA mortgage and want to refinance FHA allows you to refinance:

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 income verification
No appraisal required
No asset verification

New FHA guidelines changes

A borrower is eligible for a streamline refinance without credit qualifying if they has owned the property for at least six 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 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 Streamline guidelines

Effective with case numbers assigned on or after April 18, 2011, FHA no longer requires lenders to certify employment and income on streamline refinance transactions.

No-cost refinances, in which the lender charges a premium interest rate to defray the borrower’s closing costs and/or prepaid items, are permitted.

What documentation will I need?