FHA Streamline Refinance Guidelines
Borrower must currently have an FHA loan on the property.
The streamline refinance must lower the borrowers current principle and interest payment unless the borrower refinances into a shorter term loan, then the P&I payment can not go up more than 20%.
Borrower must have had their current FHA loan for at least 6 months.
The current FHA mortgage loan must have been paid on time for the past 12 months and it must be current at the time of the refinance.
The borrower cannot receive any cash out of the new streamline refinance.
No credit report is required.
FHA will require verification of employment, but not income. No tax returns, W-2's or paystubs required.No credit report is required.
Appraisal is required only if the borrower is rolling the closing costs into the loan. If the borrower decides on a No-Cost streamline refinance or pays the closing costs out of pocket, then no appraisal is required. If the borrower decides to roll the closing costs into the loan, an appraisal is required and there are maximum LTV requirements on the new loan. Contact us at 818-920-1600 for further details on this guideline.
If you have a 2nd Trust Deed on your property and you are not paying that loan off with your refinance, the current lender on the 2nd Trust Deed must agree to subordinate to the new FHA loan.
- Subordinate Financingmay remain in place, regardless of the total amount of liens against the property. The borrower is not required to pay off any outstanding subordinate liens, as long as they will clearly be subordinate to the new FHA-insured refinance mortgage.
No mortgage lates allowed in last 12 months on loans that are being refinanced from an ARM to a Fixed rate program.
Copy of existing Promissary Note required.
FHA does not require repairs to be completed (except for lead-based paint repairs) on streamline refinances with appraisals; however, the lender may require completion of repairs as a condition of the loan.
Contact us today at 818-920-1600.
