FHA Streamline Refinance Rules to Remember
December 29, 2018
Are you buying a home with an FHA mortgage loan? Have you already done so? If so, you should know about your refinance loan options with the FHA loan program including refinancing with an appraisal waiver, and no FHA required income check or credit check.
How is it possible to refinance without a credit check or an appraisal?
FHA loans include the option to refinance the home using an FHA Streamline Refinance, which has no FHA-required credit check, employment verification, and the appraisal waiver issue is also a big plus-this type of FHA refinance does not, according to FHA loan program rules in HUD 4000.1, have an appraisal requirement.
There are some caveats you should be familiar with when exploring this kind of FHA refinance loan option. If you want to refinance a mortgage at today’s interest rates, you should know these things in advance for best results.
FHA Streamline Refinances Are for Existing FHA Mortgages
Streamline refinance loans are only intended for FHA-to-FHA refi transactions. You cannot use an FHA Streamline to refinance a VA mortgage, USDA home loan, or conventional mortgage.
FHA Streamline Refi Loan Rules Do Not Include Additional Lender Requirements
Streamline refi loan rules in HUD 4000.1 do not include any of the lender’s overlays or added requirements. Do you know if your lender’s Streamline loan option includes no appraisal or credit check requirements from that particular financial institution? You’ll need to ask if the FHA policies in these areas are reflected in the lender’s own rules.
FHA Streamline Refinance Loans Are for Owner/Occupiers
FHA loan rules require occupancy. The Streamline refi loan cannot be used for investment properties or any home the owner does not intend to occupy.
FHA Refinance Loans Must Result in a Benefit to the Borrower in Most Cases
That benefit may be in the form of a lower interest rate, a lower mortgage payment, or getting out of an adjustable rate mortgage into a fixed rate.
FHA Streamline Loans Do Not Permit Cash Out
The purpose of your Streamline Refinance loan is to get the benefit of the lower payment, the fixed rate, or other tangible benefit to the borrower. But cash back to the borrower except in the form of a refund is not permitted with an FHA Streamline Refinance.
Talk to a loan officer to see what may be required to get your FHA Streamline Refinance loan moving today.
------------------------------
RELATED VIDEOS:
Reverse Mortgages Are Ideal for Senior Borrowers
The Pros and Cons of Subprime Mortgages
A Streamline Refinance Simplifies the FHA Loan Process
How is it possible to refinance without a credit check or an appraisal?
FHA loans include the option to refinance the home using an FHA Streamline Refinance, which has no FHA-required credit check, employment verification, and the appraisal waiver issue is also a big plus-this type of FHA refinance does not, according to FHA loan program rules in HUD 4000.1, have an appraisal requirement.
There are some caveats you should be familiar with when exploring this kind of FHA refinance loan option. If you want to refinance a mortgage at today’s interest rates, you should know these things in advance for best results.
FHA Streamline Refinances Are for Existing FHA Mortgages
Streamline refinance loans are only intended for FHA-to-FHA refi transactions. You cannot use an FHA Streamline to refinance a VA mortgage, USDA home loan, or conventional mortgage.
FHA Streamline Refi Loan Rules Do Not Include Additional Lender Requirements
Streamline refi loan rules in HUD 4000.1 do not include any of the lender’s overlays or added requirements. Do you know if your lender’s Streamline loan option includes no appraisal or credit check requirements from that particular financial institution? You’ll need to ask if the FHA policies in these areas are reflected in the lender’s own rules.
FHA Streamline Refinance Loans Are for Owner/Occupiers
FHA loan rules require occupancy. The Streamline refi loan cannot be used for investment properties or any home the owner does not intend to occupy.
FHA Refinance Loans Must Result in a Benefit to the Borrower in Most Cases
That benefit may be in the form of a lower interest rate, a lower mortgage payment, or getting out of an adjustable rate mortgage into a fixed rate.
FHA Streamline Loans Do Not Permit Cash Out
The purpose of your Streamline Refinance loan is to get the benefit of the lower payment, the fixed rate, or other tangible benefit to the borrower. But cash back to the borrower except in the form of a refund is not permitted with an FHA Streamline Refinance.
Talk to a loan officer to see what may be required to get your FHA Streamline Refinance loan moving today.
------------------------------
RELATED VIDEOS:
Reverse Mortgages Are Ideal for Senior Borrowers
The Pros and Cons of Subprime Mortgages
A Streamline Refinance Simplifies the FHA Loan Process
Do you know what's on your credit report?
Learn what your score means.
