This guide covers FHA streamline refinance guidelines. Homeowners with current FHA loans still have the 0.85% FHA annual mortgage insurance premium. They may want to take advantage of FHA streamline refinance mortgage guidelines and see if they will get a net tangible benefit with the new FHA annual mortgage insurance premium of 0.55% FHA MIP. Borrowers with FHA mortgage rates higher than 7.5% may want to do an FHA streamline refinance with no closing costs, income, credit, or appraisal required. FHA streamline refinance guidelines do not require a new appraisal, no income verification, and no credit scores.
The only thing that FHA streamline refinance guidelines require is that the homeowner has a 12-month past timely mortgage payment history. FHA streamline refinance mortgage loan applicants can have late payments in the past 12 months with other creditors except for their mortgage payments.
Debt-to-income ratios will no longer be an issue when it comes to FHA streamline refinance mortgage loans. This is because the mortgage lender will not verify the income. Credit scores are not required. However, if homeowners have great credit, we can use credit scores to get the borrower the best possible FHA mortgage rates. In the following paragraphs, we will cover FHA streamline refinance guidelines on FHA loans.
FHA Streamline Refinance Guidelines on Home Appraisals
HUD, the parent of FHA, per FHA Streamline Refinance Guidelines does not require a new FHA home appraisal. This is because, in the eyes of HUD, they are insuring FHA loans. The borrower has already gone through an FHA appraisal on a property. The homeowner has been paying your mortgage payments on time. So why to order another appraisal since the home is already FHA insured? HUD will go by the homeowner’s original purchase price as the home’s value, no matter what the home is currently worth. The home can be worth less than the balance of your mortgage, and you can still qualify for an FHA streamline mortgage loan.
FHA Streamline Refinance Guidelines: Easiest and Fastest Loan Closing
FHA Streamline Refinance Guidelines are so streamlined that streamline refinance mortgage loans close in 2 to 3 weeks. They are the easiest mortgage loans that are out there. No employment verification is required with the FHA Streamline Refinance mortgage.
Homeowners with a current FHA loan can do an FHA streamline refinance with no income documentation required, no home appraisal required, and income/credit underwriting process required. The only thing that is required for pricing rates is the borrower’s credit scores. Most FHA streamline refinance mortgage loans close in less than three weeks.
Income verification on borrowers is also not required, so homeowners do not have to worry about debt-to-income ratios. Credit scores are not required with FHA streamline mortgage refinance loans. So you can have a recent late payment with your other creditors. However, you must have been current on your home mortgage for the past 12 months. Another major exemption is that no appraisal is required for FHA streamline refinances.
Eligibility Requirements For FHA Streamline Refinance
FHA streamline refinance guidelines allow borrowers with a current FHA loan to refinance to a fast-track FHA loan called FHA streamline refinance mortgage loan. To be eligible for an FHA streamline refinance, all borrowers on the current FHA loan must be on the new FHA streamline refinance loan. This holds true for the main borrowers, co-borrowers, or non-occupant co-borrowers. Homeowners cannot add or take off an original borrower or any co-borrowers.
The borrower needs to meet HUD NET TANGIBLE BENEFIT REQUIREMENTS to qualify for FHA Streamline Refinance. The borrower’s new PITI needs to lower than the current FHA loan being streamlined.
Homeowners who intend to take out an original co-borrower or co-borrowers need to do a regular FHA refinance mortgage loan. Income verification, credit scores, and full-rate and term refinance appraisal are required.
Documents Needed For FHA Streamline Refinance Loans
The great news for homeowners with FHA streamline refinance mortgage loans is that they will not need the dozens of items required when they first got their original FHA home purchase loan: no tax returns, no W-2s, no bank statements, no income verification.
Bad credit is no problem to do an FHA streamline refinance mortgage. FHA Borrowers can have bad credit, late payments, recent collections, and charge-offs.
Other derogatory credit on their credit report are allowed and still qualify for FHA Streamline Refinance Mortgages. All that is required is for the Borrower to be current with their current FHA loan payments for the past 12 months. One 30-day mortgage late payment is allowed. Homeowners get to skip two mortgage payments after their streamline refinance. Gustan Cho Associates will cover all closing costs with a lender credit. There is no money out of pocket.
Required Documents For Streamline Refinance Loans
The required documents are a copy of the mortgage note, a recent mortgage statement, a homeowners insurance declaration page, copies of borrowers’ and co-borrowers drivers licenses, and social security cards. Homeowners can contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response anytime.
Gustan Cho Associates are mortgage lenders licensed in 48 states (Not yet licensed in New York, and Massachusetts). The team at Gustan Cho Associates are experts in commercial, business, and residential loans. Gustan Cho Associates has a national reputation for being a one-stop mortgage shop.
The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays via phone, text, or email at gcho@gustancho.com. Gustan Cho Associates are mortgage brokers licensed in 48 states, including Washington, DC, Puerto Rico, and the United States Virgin Islands. Most FHA streamline refinance mortgage loans that can close in two to three weeks. The FHA streamline refinance mortgage process is simple, streamlined, and requires very limited documentation.
This guide on FHA Streamline Refinance Guidelines was updated on June 19th, 2023