FHA Streamline Refinance

Asked by Brett, Las Vegas, NV Sat Jan 7, 2012

I purchased a home in Aug. 2009 w/ a FHA loan. At the time, my parents cosigned on the loan. I would now like to remove their names if possible. I have been considering an FHA streamline refinance, but my current interest rate is 5.25%, and I'm told that I need a higher interest rate to qualify. My #1 goal is just to get the house in my name. If I can lower my payments in the process, that is just a bonus.

Is there any possible way for me to get a streamline refinance? Is anyone out there experienced with this type of refinance that could help me? Thanks!

Help the community by answering this question:

+ web reference
Web reference:


, ,
Sun Jan 8, 2012

You have two separate issues here.

First, on a streamline refinance the loan structure needs to remain identical to the original loan, otherwise you may need to start performing qualifying tasks like appraisals, or income qualifications. Meaning unless you feel like the property has increased in value and you can now qualify on your own, you probably need to leave your parent's on the streamline loan.

The second situation that you face is that in order to do a true streamline, you must decrease your Principal and Interest + MI payment by at least 5% in order to exhibit a Net Tangible Benefit. Not long ago, FHA increased the monthly MI to over double what it was in years past. What this means is that even though your rate would go down, the increase in MI sometimes offsets the benefit and in turn could actually raise your payment.

However, it depends on when you actually closed on your loan. I would happy to talk more about this with you and explore the possibilities.

Feel free to contact me at 702-808-8328.

Your mortgage partner for life,

Rey Gallegos ( NMLS ID 557038)
Loan Officer | Branch Manager
W.J. Bradley Mortgage Capital Corp. ( NV License # 504)
702.808.8328 Direct
702.446.6591 Fax
702.800.5077 Office
2200 Paseo Verde Pkwy. Ste. 100
Henderson, NV 89052
1 vote
, ,
Sat Feb 11, 2012

I can help you. Because you are removing your parents from this new loan, you have to provide more paperwork to prove you qualify on your own than a normal streamline. But in most cases an appraisal is not necessary.

The tricky part comes in the fact that when you do a streamline, you have to show that your Principal + Interest + Mortgage Insurance is at least 5% better than what you currently have. While the current FHA interest rate is at or below 4% on an FHA loan, the Mortgage Insurance factor has increased dramatically since you purchased. The MI factor now is 1.15% and makes the 5% benefit harder to come by since your current interest rate is 5.25% but it can be done.

Contact me if you still need help.

Andy Gutman, Loan Officer
(702) 575-3757 cell
0 votes
Jimmy Balsano, Agent, Las Vegas, NV
Mon Jan 9, 2012
Hi Brett

I would recommend that you talk to Mortgage Loan Specialist,
Contact Barbara Castro WJ Bradley,(702)650-7664 or (702)281-0122

If I can assist you with any other question contact me @
(702)281-2225 or email:jimbalsano@cox.net

Jimmy Balsano
Realty One Group
Fax 1-866-371-8421

0 votes
Marie Sestile, , Las Vegas, NV
Mon Jan 9, 2012
Hi Brett,

Rey provided good information regarding the streamline refi requirements.

I am curious if you want the house in just your name or the mortgage in just your name? There are ways to get the deed in just your name and an attorney would be a great person to help you with the legal documents required.

If it's the mortgage you want in just your name, then based on the information you've provided, you would have to do traditional refinancing and your individual credit and income would be considered in determining your new interest rate as well as the current value of the property.

Good luck!

Marie Sestile, CDPE, REALTOR
Since 1917 Realty
0 votes
Annette Levi…, , New York, NY
Sun Jan 8, 2012
You need to speak to a mortgage originator. Has your home gone down in value? Is it worth the same or more. If you home has not gone down in value and you have the income and credit score to qualify, you would need to do a regular refinance since you are taking your parents off the mortgage.
0 votes
Jamelah Jack…, Agent, Las Vegas, NV
Sat Jan 7, 2012
Call this guy.. He'll let you know flat out if you can Refi or not. Tell him Jamelah sent you :)

Good luck!

Steve Mevorah

Mortgage Loan Originator
NMLS #345396

Broker License #504 Branch # 372238 NMLS

Nevada Banker License #2061

DIRECT to Steve 702-413-7467

Fax 702-413-7468

http://www.VegasMortgageMan.com steve@vegasmortgageman.com
0 votes
Suzie Marqua…, Agent, Las Vegas, NV
Sat Jan 7, 2012
I have a great lender that I have worked with for over 12 years. I am sure she could answer your question. If you want to contact me I can give you her contact information. I hope you will be able to do a refi.
Thank You
Suzie Marquardt
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more