Financing in 92618>Question Details

Elemento, Home Buyer in California Hot Springs...

Has anyone had any success with doing an FHA streamline refinance?

Asked by Elemento, California Hot Springs, CA Thu Apr 9, 2009

I'm having a hard time finding a bank that is even familiar with it. I ran across Trust One Mortgate Banker in Irvine and they are quoting some pretty good rates. Was also wondering if anyone has had any experience with them. Thanks in advance.

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Hi Elemento,

I am a direct lender here in Southern California and handle FHA loans for purchase or refinance. Many banks do not arrange FHA loans so it is no surprise that you have had some challenges locating one.

FHA streamline refinances are the simplest of any FHA loan. There is no qualifying, no appraisal, and far less paperwork in most cases. The main criteria is that you must improve (lower) your monthly payment in a beneficial amount compared to any fees charged for the new loan. This requirement is placed upon lenders to protect consumers from paying high fees for little payment reduction. Also, the borrower must be current on their mortgage payment.

Another aspect about FHA refinances to be mindful of is it is best to close your refinance loan at the end of the month. FHA receives a full month's interest on the mortgage being paid off regardless of the day of closing. Example, if you closed your new loan on the 15th of the month you would pay interest on the old loan through the end of that month in addition to being charged interest on your new loan from the day of its funding to the end of that same month.

It is important to make sure your lender of choice can close you new loan on time. If your funding does not happen until the 2nd of the month, you will double pay that entire month!

Feel free to contact me direct, if I can be of further assistance.

Wishing you all success.


Ron Wright
Sr. Loan Officer
cell: 619-857-2273
First Nations Home Finance
0 votes Thank Flag Link Thu Apr 9, 2009
It's always worth it to at least attempt an FHA Streamline Refinance if it's going to give you any benefit whatsoever. Your best bet is to talk to Home Loans For All. I will include a link to their website.
4 votes Thank Flag Link Sat Jan 16, 2016
Hi Elemento!

My favorite aspect of the FHA streamline program is how quickly a lender can close the loan for a potential borrower. Being that there is no appraisal and much less documentation compared to a traditional refinance, these loans generally take 2-4 weeks from start to finish.

It seems that you have plenty of information here to make a great educated decision on your homes financing, all of which are great responses. However, should you have any additional questions or concerns please don't hesitate to reach out to me at my contact information below.

Wishing you all the best,

Ryan Dalton
Senior Loan Officer
Residential Finance
(614) 255-3917
0 votes Thank Flag Link Mon Jun 17, 2013
Purchase new home or renovate your old one with 203k loan.
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try for more information.
0 votes Thank Flag Link Sun Jun 16, 2013
Elemento, Ron's answer below is a perfect one - spelling out pretty much all you need to know. If, for some reason you aren't calling him, my preferred lender is in South O.C., also, and would give you the same answers. He, like me, has over 32 years of local experience. I have linked his website, below. You should get moving on this now.
Web Reference:
0 votes Thank Flag Link Fri Apr 10, 2009

I work with a direct lender who has done these for my clients. One of my clients went from 6.5 down to 5.0% on a 30 year fixed. They are really pleased with this, as they bought last year and now their payment is more in line with current home sales in their area. If you want a referral, let me know. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Fri Apr 10, 2009
I would have to say the benefits of a FHA Streamline Refinance is

Appraisal usually not required
Very little paperwork
No credit check, income verification, employee verification, or underwriting fee
Easily increase or decrease the length of the term of your existing loan
Take advantage of current low interest rates
Little or no out-of-pocket costs

Many people choose a FHA Streamline Refinance because they can refinance with no out-of-pocket costs. This is offered in two ways: the costs can be covered by the lender in exchange for a slightly higher interest rate, or the costs can be included in the new loan if the property has sufficient equity.

FHA Streamline Requirements

There are certain requirements of a FHA Streamline Refinance. First and foremost, your existing loan must be FHA-insured, current, and in good standing. The borrower must have opened the loan at least six months prior to refinancing. The Streamline Refinance must lower the borrower's interest rate, thus lowering monthly payments. Cash back is not an option for this type of refinance

I hope this info was helpful

Wells Fargo Home Mortgage
0 votes Thank Flag Link Thu Apr 9, 2009
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