The Basics on the FHA Streamline Refinance

Those who may have a non-FHA loan that is delinquent, and would like to refinance into an FHA secured mortgage, must fully qualify for the rate and term refinance. Once you go from and FHA loan to another FHA loan, you are then eligible to take advantage of the FHA streamline refinance program.




So, just to recap:

• The current mortgage must be FHA insured, and the mortgage must be current.

• The borrower must have a minimum fico score of 640.

• The refinance must lower your principal and interest payment.

• The borrower cannot receive cash out of more than $500.

• The borrower must bring one pay stub to show the ability to repay, but nothing is done with the paystub.

• Any second liens can remain in place, as long as they are still subordinate to the first.

• The term of the new loan must be the lesser of 30 years, or the unexpired term of the mortgage plus 12 years. You cannot go from a15 year loan to a 30 year loan.

• An appraisal is not required unless the closing costs are included into the loan, and the appraisal cannot put the borrower upside down. Those streamline refinances without an appraisal, are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium, plus the new upfront MIP if it is to be financed into the mortgage/

• No termite report is required.

• The borrower must have a minimum of 6 months of pay history.

• The borrower will need to provide one bank statement, and one mortgage payment to the closing table.

• Lastly, the borrower cannot be late or delinquent on any federal debt.



These are just the basic details, but with FHA the possibilities are endless, not to mention the rates are the lowest they have been in 50 years. The average FHA interest rate is 5.75, and can go as low as 4.5 if you qualify and the rates are available. The rates fluctuate daily with the market, but you can still look at the options with a 15 or a 30 year fixed rate. With as low as the rates are now, you will never need to refinance again. For more information on FHA, and how you can begin the process today, you can visit my website at www.fhaloansnow.net, or you can call me directly at (310) 498-2700.