FHA Streamline Refinance Loan Mortgage Guidelines

This BLOG On FHA Streamline Refinance Loan Mortgage Guidelines Was UPDATED And PUBLISHED On May 3rd, 2020

What are the FHA guidelines for improving mortgage refinancing

FHA Streamline Refinance Loan: No Credit Or Income Required is now offered by Gustan Cho Associates Mortgage Group.

FHA Streamline Explained: FHA Streamline Loan Program is a fast track special refinance for homeowners with FHA Loans.

  • Gustan Cho Associates offers Streamline Refinances on FHA Loans
  • t requires no income verification and no home appraisal required
  • Credit is no issue
  • The only requirement is that the borrower been timely with their current FHA Loan for the past year
  • One 30-day late payment on a mortgage is allowed

In this article, we will discuss and cover FHA Streamline Refinance Mortgage Guidelines.

Net Tangible Benefit To Borrowers 

Mortgage rates have spiked up more than 1.0% mid last year. There are many homeowners who have mortgage rates north of 5.0%.

  • FHA Streamline Refinance may just be the answer to homeowners in saving money
  • This might be the time to consider an FHA Streamline
  • Homeowners who currently have mortgage rates over 5.0% can save tens of thousands of dollars by refinancing current FHA Loan with FHA streamline refinance loan
  • FHA streamline programs do not require an appraisal
  • Nor does the lender require to verify income
  • Homeowners do need a job but income verification is not required

The main objective of an FHA streamline refinance is to lower the current mortgage rate where monthly payment reduces.

Bad Credit Okay With FHA Streamline Refinance Loan

Here are some basic qualification requirements on FHA Streamline Programs:

  • Can have outstanding Judgments
  • High DTI
  • Late Payments Permitted
  • Bankruptcy allowed
  • Foreclosure of other properties
  • Collections
  • Charge Offs
  • Tax Liens
  • No Appraisal Required

Fast Track Refinance Program For Homeowners With Current FHA Loans

What does the Rapid Refinancing Program mean to homeowners with current FHA loans

The only requirement is that borrowers have timely payments on their current FHA Loan for the past 12 months.

I offer FHA streamline programs with no credit scores required.

  • As long as you have been making timely payments on current FHA insured mortgage loan for at least six months, borrowers will qualify and get approved for an FHA streamline refinance loan
  • Many folks ask what if they had a recent judgment, late payments, collections, or other derogatory credit
  • The only thing that you need to be concerned with for an FHA Streamline Refinance is that you have been paying current FHA Loan on time for the 12 months
  • One late payment in the past 12 months is allowed
  • However, timely payments in the past six months
  • It does not matter whether homeowner have been late with other bills

This holds true as long as the mortgage tradeline has been current.

Debt To Income Ratio Not Required With FHA Streamline Refinance Loan

FHA streamline refinance does not require the borrower to provide income nor is there any income verification.

  • Streamline Borrowers do not have to worry about having a high debt to income ratios
  • Overtime income or part-time income is not important on Streamlines
  • This is because no income verification is required

Debt to income ratios can be 80% or more and borrowers can still qualify for an FHA Streamline refinance mortgage loan.

FHA Streamline Requires Net Tangible Benefit

Homeowners who currently have an FHA Home Loan who feel they can benefit from an FHA streamline refinance can contact us anytime at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com.

  • We can go over current FHA insured mortgage to determine if the borrower qualifies for net tangible benefit with an FHA streamline refinance

The Federal Housing Administration requires that the FHA streamline borrower have a minimum net tangible benefit of at least 5% savings of their monthly mortgage payment.

Purpose Of FHA Streamline Refinance

What is the goal of improving refinancing by FHA?

As mentioned earlier, to qualify for an FHA streamline mortgage, the homeowner needs to already have an FHA loan. They must have been current for at least six months with no mortgage late payments.

  • Credit scores and income does not matter
  • The purpose to consider an FHA Streamline Refinance is to lower current mortgage payment by lowering current mortgage rates
  • Homeowners need a net tangible benefit (savings) of at least 5% savings from the current mortgage payment
  • Homeowners with FHA mortgage loans with adjustable-rate mortgages can convert the adjustable-rate mortgages into a 30 year fixed rate FHA loan
  • Borrowers cannot do a cash-out refinance loan

All FHA streamline refinance mortgage loans are rate and term refinance mortgage loans. All original borrowers, including non-occupant co-borrowers, need to be on the new streamline refinance mortgage.

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