Section 2: Am I Eligible for a FHA Streamline Loan

Eligibility For a FHA Streamline Loan

In general, FHA streamline refinance is a program that allows homeowners with FHA-backed mortgages to refinance with less time, hassle and paperwork. With a streamline refinance, you don't need to go through the FHA appraisal process again, since the FHA has already valued the property. The streamline program is only available to homeowners who already have FHA loans, but that doesn't mean you have to refinance with your existing lender. FHA loan requirements and fees may vary by lender. Comparing quotes from several different FHA streamline refinance lenders will help you find the best deal.

The basic requirements of a streamline refinance are:

• The mortgage to be refinanced must already be FHA insured.
• The mortgage to be refinanced must be current (not delinquent).
• The refinance results in a net tangible benefit to the borrower. The definition of net tangible benefit varies based on the type of loan being refinanced, and the interest rate and/or term of the new loan.
• Cash in excess of $500 may not be taken out on mortgages refinanced using the streamline refinance process.
• Investment Properties are only eligible for FHA insurance if the borrower is a HUD-approved Nonprofit Borrower, or a state and local government agency, or an Instrumentality of Government.

For those who do have an FHA home loan, the other requirements for FHA Streamline include:
 

• Being current on the existing loan with all mortgage payments made on time for the last year.
• You must own the original property for at least six months before you can qualify for refinancing.
• To refinance you'll need an FHA-approved lender. If you don't want to use your current lender, any bank you choose must be FHA approved.
• FHA Streamline loans do not require an appraisal, but a no-appraisal loan cannot exceed your current loan.
• Closing costs must be paid up front or arranged for through a "no-cost" FHA Streamline loan. You may also choose to include the closing costs into your loan a "with appraisal" FHA Streamline loan. In these cases you must have enough equity in the home to cover the extra amount.

 

*Don’t meet the minimum requirements? You still may be eligible: talk with an Orbit Home Loan specialist today.  (CLICK)

Documents Your Lender May Require

- W2s or 1099’s
- Bank Statements
- Pay Stubs
- Asset Statements
- Liability Statements
- Legal ID

Contact a lender and verify eligibility (CLICK)

Conventional Lender Requirements 

Credit and Income

 

Because the FHA streamline refinance program doesn't require a full credit check, it may be a good refinance option if you have bad credit. However, FHA-approved lenders may require a mortgage-only credit report, and the higher your credit scores are, the lower your interest rate will be.

 

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How to Apply for a FHA Streamline Loan
Get started today with one of the best and most secure ways possible. Here are Orbit Home Loans we have a trusted team ready to help you find your dream home. Talk with you trusted Orbit Home Loans broker that knows conventional loans and how to get the most from this hard-earned benefit. The process typically starts with getting pre-approved, which can often be done in minutes using your phone, laptop or tablet. 

Loan pre-approval is a key first step before making an offer on your dream home. Having that pre-approval letter gives you a clear sense of your buying power and shows sellers and listing agents you have what it takes to get to closing. 

 

Questions about whether you qualify? (CLICK)