The FHA Streamline Refinance Program offers great savings and easy qualifying for homeowners. In this type of loan, FHA does not require an appraisal, credit report, or verification of employment. However, individual lenders will require a credit report and a minumum credit score. Some will require a verification of employment (not income).
Are you eligible?
FHA Streamline Eligibility Requirements
1. Must currently have an FHA Insured Loan meaning, you must currently have a mortgage loan insured by the Federal Housing Administration (FHA). If you aren’t sure if yours is, check your original loan paperwork and monthly mortgage statement.
2. Must have made 6 monthly payments, with no more than 1 payment being over 30 days late, AND 210 days have passed since the closing of the loan being refinanced. Some lenders will require a 12-month history with no late payments.
3. You must realize tangible benefit from refinancing your FHA loan. This provision ensures that borrowers receive a real benefit from refinancing. The guidelines call for a minimum rate decrease of .50% when refinancing from a current fixed rate to another fixed rate. There are allowable exceptions when converting from an ARM (adjustable rate mortgage) to a fixed rate, a fixed to an ARM, or decreasing the term of the mortgage.
4. The loan must be current and paid up-to-date at the time of closing on the refinance.
5. Appraisals are not required to qualify for FHA streamline home loans. However, many lenders require appraisals or a computer generated value (AVM) as an overlay to FHA guides.
6. If the borrower is required to bring money to closing, those assets must be verified.
7. Income & Employment Verification. FHA, the government entity who insures FHA streamline refinances, does NOT require income or employment verification or calculate debt to income ratios BUT some individual lenders may require them.
To learn more about these loans and their benefits, please call us direct at 303.987.0622 or email us here .
ACADEMY NATIONAL MORTGAGE CORPORATION - NMLSR #191799
SERVING ALL OF COLORADO
Phone: 303.987.0622 / Cell/Text: 303.902.0082