This is a special FHA loan program that cuts down on the amount of paperwork required to obtain this loan. FHA has permitted streamline refinances to be quicker on insured mortgages
No cash may be taken out on mortgages refinanced using the
streamline refinance process.
Companies may offer streamline refinances in several ways. Some
companies 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 company pays any closing costs that are incurred on the transaction.
Companies may offer this type of refinancing 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.
This can also be done without appraisals, but the new loan amount cannot exceed what is currently owed, i.e., closing costs may not be added to the new mortgage with those costs either paid in cash or through the premium rate as described above.
Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal and, thus, closing costs may not be included in the new mortgage amount.
If you have any questions on
streamline refinances
, I’ll be happy to answer them. If you like what you read and would like to proceed with your own streamline refinancing, fill out the
online application
.
By clicking on the above link, you'll be taken to our secure online quick loan application form.
After you fill out the form, you'll be taken to a page with a list of documents that you'll need to gather.
Please be sure to print out this page! Then you're on the way to qualifying for the best fha home loans available.
________________________________________________________________
Return from FHA Streamline Refinance Loan, to First Time Home Buyer Solutions home page.
