Updated January 2018
FHA streamline programs is made to help FHA homeowners lower their mortgage rates and monthly payments through a quick and easy process requiring much less documentation. This program is fast and cost-efficient all while maintaining attainable requirements, making this program very attractive.
Through FHA streamline refinance, homeowners can bring down their FHA mortgage insurance premiums (MIP). Most FHA loans with over 15 years term may have 0.80 to 1.05 percent annual MIP. Those loans of up to 15 years may have an annual MIP of 0.45 to 0.95 percent. (based on 2017 MIP Rates)
Why Do A Streamline?
Among the reduced documentation that FHA Streamline requires there are a large number of benefits that the Streamline program can offer:
- No appraisal
- Underwater homes are eligible
- Low rates
- No proof of income required
- You may be able to receive a refund on some of your upfront mortgage
- Fast Closing times
Do I Qualify?
If you have a current FHA loan and you have a good payment history, you may qualify!
This program does not typically require an appraisal to get approved for the FHA loan, so this means that even if your home has lost value, or is now underwater you are eligible!
Loan Payment History
This is one of the most crucial components of the streamline program. In order to qualify for an FHA streamline loan, you must show a history of making mortgage payments on time. However, if you have had some late payments you are not disqualified automatically. You can rebuild your history and after 12 months of positive payment you may qualify.
If your mortgage is less than 12 months old you must have made ALL payments on time. If your mortgage is 12 months or older you are permitted no more than one payment that was more than 30 days late. Furthermore the three months’ payments prior to the loan refinance application MUST have been made one time.