FHA Streamline Refinance

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 employment verification
• No credit report required
• No appraisal required

First of all you will be eligible for a streamline refinance without credit qualifying if you have 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.

In addition 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.

• a 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

In conclusion 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.