HUD FHA Streamline Refinance Mortgage Guidelines
This BLOG On HUD FHA Streamline Refinance Mortgage Guidelines Was PUBLISHED On March 25th, 2019
HUD FHA Streamline Guidelines is a fast-track refinance mortgage program with limited documents required.
- Mortgage Rates are at a 13 month low due to the FED Freezing Interest Rates for the remaining 2019
- With the freeze of interest rates by the Federal Reserve Board, industry experts expect mortgage rates to further drop in 2019
- Many homeowners who closed their FHA Loans last year in 2018, closed them with high mortgage rates
- 2018 had the highest mortgage rates since the 2008 Great Recession and Housing Bubble Crash
- Mortgage rates had steadily been declining since the beginning of 2019
- Rates are expected to further drop in the weeks and months to come
- This gives homeowners with FHA Loans to go through HUD FHA Streamline Refinance in the weeks and months to come
In this blog, we will discuss FHA Streamline Refinance Guidelines. We will discuss the net tangible benefits for the borrowers when refinancing with HUD FHA Streamline.
What Is An FHA Streamline Refinance
Under FHA Streamline Refinance Mortgage Guidelines, homeowners with a current FHA Loan can refinance their current loan to a new FHA Loan at lower interest rates.
- HUD FHA Streamline Refinance is a fast-track loan program that streamlines the process with little limited documentation required
- Most Streamlines close in 21 days or less
- There is no home appraisal required
- There are no income docs required so DTI will never be a problem
- There are two types of HUD FHA Streamline Refinance Loans
- Credit Qualifying and NON-Credit Qualifying Streamlines
- Borrowers can have bad credit and low credit scores with late payments in the past 12 months and can qualify if they just have their FHA Loan Payments paid timely
- To get the best mortgage rates, a higher credit score will be required
- In order to qualify, they need to be in a current FHA Loan
- No late payments in the past 12 months are preferred
- However, need to have been current in the past 6 months prior to the FHA Case Number Assignment
- Mortgage needs to be in good standing and cannot have any 30-day late payments in the prior six months to the FHA Case Number Assignment
- Borrowers can have no more than one 30
daylate in the past 12 months but not in the past 6 months
- In order to qualify, borrowers must meet a net tangible benefit
HUD FHA Streamline Refinance is for rate and term only. Cash-outs are not allowed with streamlines. There is no credit score requirements, no home appraisal, and no income docs required. Borrower with higher credit scores can qualify with credit qualifying streamlines for lower mortgage rates.
Benefits With Refinancing With HUD FHA Streamline
In order to be eligible for streamlines, borrowers need to meet the net tangible benefit test. Other benefits includes:
- Refund of
- If there is an escrow shortage, the new escrow account will be created with the shortage amount replenished
- Borrowers often get to skip two mortgage payments
- Eligible properties include single-family homes, townhouses, condos, PUD
FHA Streamline Mortgage Process During Bankruptcy
Borrowers cannot qualify for a streamline during an active Chapter 7 bankruptcy process.
- The Chapter 7 bankruptcy needs to be discharged
- There is no waiting period seasoning requirement after a Chapter 7 Bankruptcy
- Borrowers can qualify for streamline refinancing during an active Chapter 13 Bankruptcy repayment plan after one year in the plan
- Need trustee approval
- No waiting period after Chapter 13 Bankruptcy discharged date
Valuable HUD Resource Links
Here are valuable Resources and valueable links:
Here is the HUD Mortgagee letter 2015-01 on the revised FHA MIP effective January 26, 2015.
Here is more information by HUD in meeting the net tangible benefit test for borrowers:
For more information on HUD FHA Streamline Mortgage Guidelines, please contact us at Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at email@example.com. We are direct lenders with no overlays on FHA Loans. We are available 7 days a week, evenings, weekends, and holidays.