FHA Streamline Refinance Requirements With Limited Documents

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This BLOG On FHA Streamline Refinance Requirements With Limited Documents Was Updated And PUBLISHED On May 4th, 2020

FHA Streamline Refinance Requirements With Limited Documents

The Federal Housing Administration, commonly known as FHA, has a mortgage refinance program call FHA Streamline Refinance Mortgages which is available to all homeowners who currently have FHA Loans. FHA Streamlines is a fast track refinance loan program where a homeowner with an FHA Loan refinance and close on their refinance a mortgage loan in two weeks or less.

In this article, we will discuss and cover FHA Streamline Refinance Requirements With Limited Documents.

How Do Streamline Refinance Work

Here are some of the fast track features on FHA Streamlines

  • Home Appraisal is not required
  • Income Verification is not required
  • There are no minimum credit score requirements
  • Since there is no income verification on all FHA Streamline Refinance Requirements, high debt to income ratios should not be a concern
  • Borrowers do not have to worry about high DTI where they need to pay off credit card accounts and the lender scrutinizing their income tax returns, overtime, part-time income, and/or bonus income
  • Borrowers can have bad credit and we do not care about recent late payments, collections, charge offs, judgments, tax liens, as long as the homeowner has been timely on their mortgage payments for the past 12 months
  • One late payment in the past 12 months is allowed
  • No closing costs: Closing costs are paid by the lender
  • Limited paperwork needed: Tax returns, W-2s, paycheck stubs, bank statements are not required with Streamline Refinances
  • Closing in 2 weeks

No Appraisal Required On FHA Streamline Refinance Requirements

No Appraisal Required On FHA Streamline Refinance Requirements

FHA does not require a homeowner to get a new home appraisal on FHA Streamline Refinance mortgages.

  • The reason they do not require an appraisal on FHA Streamline mortgage loans is that FHA figures that they had an FHA appraisal when the homeowner purchased their home and the home is already insured by HUD
  • Why order a second appraisal if the home has been insured with FHA and the homeowner has been occupying the property and paying their mortgage payments on time

No Income Verification

No Income Verification

With an FHA Streamline Refinance, there is no income verification.

  • As long as the homeowner has been timely on their current FHA insured mortgage loan for the past 12 months, that is good enough for FHA
  • Income qualification is probably the biggest and toughest aspect in qualifying for a purchase loan or refinancing a home loan
  • without income verification, it streamlines the refinance mortgage loan process and that is the main reason why FHA Streamline Refinance mortgage loans close in 2 to 3 weeks

No Credit Scores Required For Homeowners With Bad Credit

There is an FHA Streamline Refinance mortgage loan program that does not require credit scores and those with bad credit can qualify:

  • We normally take advantage of the no credit score FHA Streamline Refinance mortgage loan program for homeowners with credit scores of 580 FICO or worse
  • Any homeowner with credit scores of 580 FICO or higher, it is advantageous to the homeowner to use credit scores
  • The higher the credit score, the better the FHA mortgage rates
  • For example, a no credit score FHA mortgage loan applicant may get quoted an interest rate of 4.5%
  • A 580 FICO to 620 FICO credit score FHA Streamline Mortgage loan applicant may get quoted an interest rate of 4.25%
  • A 620 FICO to 680 FICO credit score FHA Streamline Mortgage Loan applicant may get an interest rate quoted a 4.0% interest rate
  • A 680 FICO to 740 FICO credit score FHA Streamline Refinance mortgage loan applicant may get quoted an interest rate of 3.75%
  • Anyone with a credit score over 740 FICO credit score may get a 3.5% interest rate on an FHA Streamline Refinance
  • Please note that these rates are not actual rates quoted and are just used for illustration purposes
  • Bottom line is that good credit saves you money

Qualification For FHA Streamline Refinance Requirements

There are countless homeowners with FHA Loans where they can benefit from FHA Streamline Mortgages.

  • The Streamline Refinance process is so simple and takes two weeks to close
  • All that is required is a recent mortgage payment bill and homeowners insurance declaration page
  • Tax returns, W-2s, paycheck stubs, bank statements, and other documents required on a home purchase mortgage process is NOT REQUIRED
  • The best benefit for homeowners doing an FHA Streamline Refinance is that they get to skip two months of mortgage payments after their refinance their FHA Loan
  • Closing in two to three weeks
  • All original borrowers from the original FHA Loan need to be on the new Streamline Refinance Mortgage
  • Closing can be done at the homeowner’s home where the title agent will travel
  • No closing costs. All closing costs will be paid by the lender with a lender credit

To see how much money that can be saved and see what types of net tangible benefit homeowners can benefit from, contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or APPLY NOW ONLINE. Borrowers can also email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays. Again, there is no closing costs because we offer full lender credit to all of our FHA Streamline Refinance borrowers and homeowners get to skip two mortgage payments.

Related> FHA Streamline Refinance Mortgage

Related> Refinance

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