The Mortgage Minute- FHA Streamline Refinances
The Mortgage Minute is weekly informational series presented by Laura Borja, Your San Diego home loan expert.
An FHA streamline refinance allows you to refinance your current FHA loan without the need to income qualify, and in many instances, without the need for an appraisal.
Though there are a lot less requirements on an FHA streamline refinance, there are still guidelines that need to be met.
Let’s take a look at some of the requirements for FHA Streamline Refinances.
- You must have made at least six payments on your current loan.
- Your loan cannot be delinquent or have any late payments in the previous six months.
- Your new combined rate, which is your interest rate plus your MIP factor, must be at least a half a point lower. Different rules do apply if loan as an arm or hybrid arms so contact your lender or me for additional details.
- Your new maximum loan amount can only include your current principal and interest balance minus any upfront MIP refund if available plus your new upfront MIP premium. Closing costs and prepaids cannot be rolled into your loan so you might need to be prepared to pay for those out of pocket or negotiate with your lender for a lender credit via interest rate.
- FHA does not have a requirement for credit scores but lenders do so check with your lender or me to make sure you need that guideline.
And there you have it a quick look at FHA streamline refinances.
If you have any questions or if you’re ready to start the pre-approval process by all means send me an email, give me a call or shoot me a text. I’ll be happy to help.
Thanks for checking out this week’s The Mortgage Minute. Until next week!
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