Updated January 2018
FHA Streamline programs are designed for people with existing FHA loans. This program is made to help you refinance your home in a quick and efficient way. Streamline refers to a process that requires minimal documentation and is fairly easy to qualify. Most people that do an FHA Streamline Refinance end up lowering their monthly payments through interest and save up to years worth of mortgage payments!
Just like with any other loan there are a set of FHA guidelines and requirements for the FHA Streamline Program, and Lenders may add requirements. However, this is limited to few cases as the lenders enjoy the quick and easy process, too. The most common requirement that lenders will add is a slightly higher credit score to ensure that you will stay in good standing with your loan.
There are two types of FHA Streamline Programs, one that requires an appraisal and one that does not. The program without the appraisal is the perfect options for those who currently owe more than their home is worth. They can get the lower rates to make their home more affordable without the worry of being denied the loan. If you decide to go through the process that does have an appraisal and you are in a great standing with your current loan, this can save you even more money on your refinance.
FHA can offer a refund on the Upfront Mortgage Insurance Premiums (UFMIP). Meaning that you could get some of your old UFMIP payments credited towards your new UFMIPS.
FHA Streamline Benefits:
• No appraisal necessary
• No debt to income calculations
• No minimum credit scored required
• Reduced lender fees
• Quick streamlined paperwork process and closing times
• Underwater homes may be eligible
• Lowest rates
• You may be able to qualify for a refund on your UFMIP
This low paperwork, verification free streamline refinance is one of the simplest ways to refinance your home and save some money on your mortgage, even in cases of underwater homes. There are only a few requirements to qualify for this program. You must be a current FHA loan holder and you must be in good standing with your current loan.
The rates of FHA Streamline programs vary all the time as most every loan does. This variation could be as often as once a day.
In 2015, the Federal Housing Administration announced a reduction on FHA Streamline’s Mortgage Insurance Premiums (MIP). Borrowers enjoyed rate reductions of up to 0.50 percent. In 2017, FHA pursued new rate reductions but was suspended before it even took effect. As a result, FHA MIPs reverted back to its existing rates.
When going through the Streamline process, FHA bowers can get huge discounts on their MIP, this along with the waived appraisal means that your loan to value is based on its value when you purchased it, and not it’s current value.
If you are currently an FHA-insured homeowner you may be able to take advantage of the great savings and benefits a Streamline programs can save you. To find out if the FHA streamline program can help you lower your monthly payments, and save you money be sure to shop around. Talk to a lender today, and get your application in before the rates go up!