A streamline loan has to do with refinancing a pre-existing FHA loan into a new FHA loan with no income,credit or appraisal. The product your speaking of Cindy is not the "streamline loan" it is called the streamlined 203k program but it is not to be confused.

The mortgage to be refinanced must already be FHA insured.

The mortgage to be refinanced should be current (not delinquent).

The refinance is to result in a lowering of the borrower's monthly principal and interest payments.

No cash may be taken out on mortgages refinanced using the streamline refinance process.

Lenders may offer streamline refinances in several ways. Some lenders offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.

Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal.

Call e if I can put one together for you.
Ryan
888-271-2221
community mortgage

Thu May 1 2008, 09:01

Hey c_skipper!
While the 203k is a streamline loan most folks refer to FHA Streamline refinace loans. There are two versions. The loan to be refiananced must be a FHA loan. One is a Streamline with an apprasial and the other is a Streamline without an apprasial.
No apprasial:
Can refi (must show loan benefit) up to the amount of the original loan and can be refi without, get this, an apprasial, credit check, income check, asset check. As long as you have made your last 12 payments on time you qualify. These are great loans for folks in trouble. Rate and term only. No cash out.
Streamline with apprasial - In the event that a first and second was taken out you can refi into one loan, R&T only, No cash out. Again, no credit check, no income check, no asset check. FHA is a great way to manage loan options
Good Luck
Tony Grego - Indiana Mortgage Broker

Mon Feb 18 2008, 21:07

Basically, it is a loan that allows you to finance the repair costs of a home into a mortgage. My buyers that are purchasing a HUD home that is FHA insured with a repair escrow over $4000, usually use a streamline loan. Depending upon the appraisal of the home vs the purchase price, it still qualifies for the downpayments as low as $100 and the $2500 repair credit that HUD is currently offering. The lender will approve and release the repair funds once the work is completed. Any unused funds will go towards the principle, not the purchaser's pocket.


This was taken from HUD's website: FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

Mon Feb 18 2008, 11:12