FHA Streamline Refinance BenefitsMax McCoy
FHA Streamline Refinance Program:
For homeowners with an existing FHA-backed mortgage, there are endless FHA Streamline Refinance benefits. It is among the fastest and most cost-effective way to refinance a home, and the program helps current FHA homeowners lower their rate and payment without most of the traditional refinance hassle.
With lenient documentation, credit standards, and income verification, it truly is a “streamlined” refinance process.
The FHA Streamline Refinance Benefits
Homeowners with an existing FHA mortgage are able to capitalize on the FHA Streamline Refinance benefits. Again, it’s simply the easiest way for FHA-insured homeowners to refinance their mortgages.
The FHA Streamline Refinance program is a breeze because of these two stand-out advantages:
1.Easy to Qualify
FHA Streamline Refinancing is designed to help borrowers with or without perfect credit. Put in perspective, as long as your credit score is above 620, you’re encouraged to compare your options for conventional FHA financing.
2. No Appraisal Required
The FHA Streamline Refinance program does not require home appraisal, making it one of the only refinance program you can use even if you’re underwater on your mortgage. Despite what your house is worth, the FHA lets you use your original purchase price as its current value.
Owe twice what your home is worth? The FHA will refinance your home with no added penalty. Because of this “no appraisal” feature, the FHA Streamline Refinance program is a major hit.
FHA Streamline Refinance Guidelines
There are some guidelines you must meet before reaping the FHA Streamline Refinance benefits:
• Your current mortgage must be FHA-insured.
• You must have made on-time, in-full mortgage payments for the past 12 months.
• Your credit score has to be at least 620 or higher. Some lenders require a credit score of 640 or 680 on an FHA loan.
• You cannot have refinanced within the past 210 days.
If you meet these guidelines, be sure to contact your mortgage lender and ask about an FHA Streamline Refinance.
You can also let the nation’s top lenders fight for your best rate, get a free mortgage quote here!