FHA Streamline Refinance

If you have an existing FHA Loan, call us and see how refinancing can lower your monthly payments and get you the cash you need now. By refinancing your existing loan, the total finance charges may be higher over the life of the loan.

Homeowners with existing FHA mortgages who wish to refinance their mortgage may benefit from the FHA Streamline Refinance Program. The program is a simple and easy refinance option for homeowners that eliminates the need to verify income and assets.

Many FHA loan holders have taken advantage of this program as it limits the borrower’s loan-to-value ratio. For homeowners who owe more than their home is worth, this program opens a path to refinancing with lower rates.

FHA Streamline Refinance Program Criteria

  • Applicants must occupy the home to be refinanced
  • Must have two or fewer late payments (over 30 days) during the prior 12 months on existing FHA loan
  • Must not have completed another FHA Streamline Refinance within the prior 6 months

Note: While the FHA does not have a credit score requirement, applicants must meet their lender’s financial requirements.

Cash Out Option

For borrowers who wish to leave closing with extra funds, the FHA Streamline Refinance offers a cash out option. This option allows a loan amount higher than the original FHA loan. The balance is paid in cash to the borrower. Because it’s a riskier product for lenders, the FHA cash out loan requires more documentation than a standard FHA Refinance loan.

If the applicant has occupied the home for less than a year, either the appraised value or the original purchase price of the home (whichever is lower) will be used by the lender to determine the maximum loan amount. Due to the higher risk to the lender, the cash out option requires more documentation from the applicant, including a credit check, verified mortgage payment history, and adherence to stricter debt-to-income ratio guidelines.

To qualify for the FHA Refinance cash out option, the following criteria must be met:

  • Applicant must occupy the property to be refinanced
  • Must have one or fewer late payments over 30 days during the prior 12 months on existing FHA loan
  • The existing mortgage must be older than six months

Rate-and-Term Refinance Option

Applicants who want to lower the monthly payments or length of time of their loan may choose the Rate-and-Term Refinance Loans option. With this option, the amount of the loan does not change but the monthly payment or number of monthly payments due will be decreased. By refinancing your existing loan, the total finance charges may be higher over the life of the loan. For applicants worried about meeting monthly payments on their mortgage, an FHA Rate-and-Term Refinance Loan may be the answer.

No-cost Refinance Option

Applicants who want to refinance their home without paying the fees and costs of refinancing at closing, consider the FHA No-cost Refinance Option. The fees normally due at closing are included in the total refinance loan amount. Choosing this option may affect the term of our loan, the interest rate of your loan, or both. Be sure you understand the options available to you by discussing your refinancing goals with your Licensed Mortgage Loan Originator at Trident Home Loans.