This Article On HUD FHA Streamline Refinance Guidelines And Mortgage Process
HUD FHA Streamline Refinance Guidelines And Mortgage Process With No Appraisal/No Income Verification
The United States Department of Housing and Urban Development (HUD) is the parent of the Federal Housing Administration (FHA).
- HUD FHA Streamline Refinance Guidelines rewards homeowners with current FHA Loans to be able to streamline their whole FHA Home Loan Refinance Process with no home appraisal, income verification, or credit guidelines
- Under HUD FHA Streamline Refinance Guidelines, most FHA Streamline Refinance loans can be done and closed in two weeks
- FHA Streamline Loans are one of the fastest and easiest mortgage processes there is. Most lenders can approve and close streamlines in a matter of two weeks or less
In this article, we will discuss and cover HUD FHA Streamline Refinance Guidelines And Mortgage Process.
HUD FHA Streamline Refinance Guidelines And Benefits
Mortgage Rates are hitting a 10 year high due to the great economic news.
- FHA mortgage rates were at 3.25% in 2013
- Now FHA mortgage interest rates are north of 4.5% with no signs of correction
- Housing demand is stronger than ever with mortgage rates increasing
- Mortgage Rates are expected to increase due to the strong economy
- However, there are still many homeowners with FHA Loans with mortgage rates north of 6% rates
- Many homeowners with FHA Loans do not want to even think of the word mortgage because they think it will be stressful with tons of paperwork required
- However, under HUD FHA Streamline Refinance Guidelines
FHA streamlines only require a fraction of the work that the regular mortgage process entails.
Benefits Of Streamline Refinance
Here are the benefits of FHA Streamline Refinance Mortgages:
Unlimited loan-to-value (LTV):
- Homeowners with loan balances higher than the value of the home will qualify for streamlines
No Home Appraisal Required:
- HUD figures since they are already insuring the current FHA Loan on the same property, why would another FHA appraisal be required
No Income Or Tax Returns:
- Debt to income ratios do not matter on streamlines
No Closing Cost And Fees Out Of Pocket:
- There are no closing costs that need to be paid out of pocket and homeowners get to skip one month’s mortgage payment
Streamlined Mortgage Process:
- Very limited documentation required and closing in less than two weeks
How Can Homeowners Qualify For FHA Streamline Refinance Mortgages
Homeowners with a current FHA Home Loan are eligible to qualify for FHA Streamline Refinancing. All original borrowers on the original loan including non-occupant co-borrowers need to be on the new FHA Loan. Homeowners need to have a net tangible benefit with the new FHA Loan in order to qualify for streamline.
Here are the basics and eligibility requirements on FHA Streamlines:
- Homeowners whose existing mortgage is insured by HUD are eligible for streamlines
- Homeowners need to be current on their existing FHA Insured Mortgage
- Homeowners cannot have no more than one 30-day mortgage late payment in the last 6 months
- To qualify for streamline refinances, homeowners new monthly principal and interest monthly payments need to have a net tangible benefit of at least 5% lower
- All original borrowers need to be on the new refinance mortgage
- Only rate and term refinances are permitted
Cash-Out refinances are not allowed.
Streamlines Versus Cash-Out Refinance
There are instances where homeowners want to do other types of refinancing mortgages. Many times, there are non-occupant co-borrowers on their FHA Loans and borrowers want to take out them off the loan. With cases like these, homeowners will need to do a full rate and term refinance which is different than streamlines. Income documentation and credit scores are required. It is like going through the whole mortgage process with the home appraisal. Same with cash-out refinance mortgages. HUD allows up to 85% loan to value on FHA cash-out refinances. A new appraisal, credit scores, and income are required on both of these types of refinance loan programs. Gustan Cho Associates Mortgage Group has no overlays on FHA Loans. To start the pre-approval mortgage process with Gustan Cho Associates, please contact us or text us for a faster response at 800-900-8569. Or email us at firstname.lastname@example.org. We are available 7 days a week, evenings, weekends, and holidays.
July 12, 2020 - 3 min read