The FHA Streamline refinancing is a quick way for homeowners with an eligible mortgage from the Federal Housing Administration (FHA) to lower their monthly payments.
If you have an FHA-insured mortgage on your home, you may be able to get a lower payment through the FHA Streamline program.
This is a fast and simple refinancing process that can help you save money on your monthly mortgage payments.
What is FHA Streamline refinance?
The FHA Streamline is a refinancing program from the Federal Housing Administration that lets you lower your monthly mortgage payments. If you have an FHA-insured loan, you may be able to get a lower payment through this program.
To be eligible for the FHA Streamline, you must have an existing FHA-insured loan on your home. You will also need to show that you have made timely payments on your mortgage for the past 12 months.
When you refinance your loan through the FHA Streamline program, you can choose to have a fixed-rate loan or an adjustable-rate loan.
If you choose a fixed-rate loan, your interest rate will be locked in for the term of your loan. If you choose an adjustable-rate loan, your interest rate could go up or down depending on market conditions.
What are the requirements for FHA Streamline refinancing?
To be eligible for the FHA Streamline program, you must meet the following requirements:
- Must have an existing FHA-insured mortgage on your home.
- Must be current on your mortgage payments, with no late payments in the past six months and no more than one in the past 12 months.
- New mortgage payment must be lower than your current payment.
- No previous changes to your original mortgage loan, such as a refinance or modification.
- Good payment history on your mortgage for the past 12 months.
- Cannot have been convicted of any felony in the past seven years or any crime involving moral turpitude.
- You must not have had a bankruptcy discharge in the past 12 months.
To apply for the FHA Streamline program, you will need to complete an application and submit it to your lender. You’ll also need to provide documentation of your income, assets, debts, and credit history.
Your lender will then review your application and determine if you are eligible for the program. If you are, they will work with you to complete the refinancing process.
What are the pros and cons of FHA streamline refinance?
There are both pros and cons to refinancing your home through the FHA Streamline program.
Pros:
- The process is fast and simple
- Lower your monthly payments
- May be able to get a lower interest rate on your loan
- Choose a fixed-rate or adjustable-rate loan
Cons:
- Only available to current FHA customers
- Any previous refinance or modification to your loan will disqualify you
- Felonies and past bankruptcies may also disqualify you from streamline
The FHA Streamline program is a good option to explore if you are considering refinancing your home. However, carefully weigh the pros and cons before deciding if it’s right for you.
FHA Streamline FAQ
What is the minimum amount of income to be approved for an FHA Streamline refinance?
There is no minimum income requirement to be approved for an FHA Streamline refinance. However, you will need to have a good payment history on your mortgage for the past 12 months and your new mortgage payment must be lower than your current payment. You also must live in the home as your primary residence.
What if I missed a payment or two?
If you have missed a payment or two on your mortgage, you may still be eligible for the FHA Streamline program. Speak with your lender to see if you are still eligible for the program.
Can I refinance my 30-year loan to a 15-year loan?
Yes, you can refinance your 30-year loan to a 15-year loan through the FHA Streamline program. This will lower your monthly payments and help you pay off your mortgage faster. However, make sure to speak with your lender first to see if this is the right option for you.
Do I have to use my current FHA lender to refinance?
No, you do not have to use your current FHA lender to refinance. You can shop around and compare rates and terms from different lenders before deciding on the best one for you.
How long does FHA Streamline refinance take?
The FHA Streamline process is typically much faster than a traditional refinance. The entire process can take as little as a few weeks.
How long do I have to wait to apply for FHA Streamline?
To be eligible for a Streamline Refinance, borrowers must make six mortgage payments on the current FHA-insured loan, and 210 days pass from the most recent closing date.
Find your perfect lender for refinancing
Now that you know more about the FHA Streamline program, it’s time to find the perfect lender for refinancing your home. We make it easy to find the right loan for you. Get started today and see how much you can save!