It is truly an amazing new refinance product, the FHA Streamline is for all
those out there that have an existing FHA loan you have not refinanced.
Yes, I jumped on it the minute I heard
the program would allow me to refinance and paperwork was accepted on June 18. If you have not gotten your application in yet don't wait too long as the backlog will be tremendous.
The FHA Streamline Refinance program's defining characteristic is that
it does not require a home appraisal. Instead, the FHA will allow you to
use your original purchase price as your home's current value,
regardless of what your home is actually worth today. Most refinances are possible even in an upside down situation.
In this way, with its FHA Streamline Refinance program, the FHA does
not care if you are underwater on your mortgage. In fact, the program
encourages underwater mortgages. Even if you owe twice what your home is now worth, the FHA will refinance your home without added cost or penalty.
***The FHA allows for unlimited loan-to-value with its Streamline Refi program
To qualify for the FHA Streamline refinance:
- The mortgage to be refinanced must already be FHA insured.
- The mortgage to be refinanced should be current (not delinquent).
- The refinance results in a lowering of the borrower's monthly
principal and interest payments, or, under certain circumstances, the
conversion of an adjustable rate mortgage (ARM) to a fixed-rate
- No cash may be taken out on mortgages refinanced using the streamline refinance process.
In a sweeping guideline update, in April 2011, the FHA abolished
verification for practically everything on an FHA Streamline Refinance
mortgage application. Now, as written in the FHA's official mortgage
guidelines, the mortgage approval process for an FHA Streamline
Refinance says :
1.Employment verification is not required with an FHA Streamline Refinance
2.Income verification is not required with an FHA Streamline Refinance
3.Credit score verification is not required with an FHA Streamline Refinance
4. No appraisal
As with everything there are always a few caveats. If it is investment
property they require income, credit verfication however, no appraisal
so it is possible to refinance with an FHA streamline an investment
property there is a bit
more paperwork to do.
http://honolulumortgage.org/what-is-an-fha-streamline-refinance-mortgage/I am not a loan officer nor associated with a lending institution therefore what is posted her is strictly based on my observation and experience. If you need mortage refinancing advice please seek the appropriate licensed professional as every situation is different.