Best FHA Streamline Refinance Lenders
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What is an FHA Streamline refinance?
How much does an FHA Streamline refinance cost?
What are the requirements for an FHA Streamline refinance?
- First, the mortgage must already be FHA insured.
- The mortgage must be current (not delinquent).
- The refinance results in a net tangible benefit to the borrower.
- Cash in excess of $500 may not be taken out on mortgages refinanced using the streamline refinance process.
- An FHA Streamline refinance cannot be used for investment properties unless the borrower is a HUD-approved Nonprofit Borrower, a state and local government agency, or an Instrumentality of Government.
Pros and cons of an FHA Streamline refinance
- There is no need for proof of employment or income since you already qualified for an FHA mortgage.
- You can avoid the home appraisal also since the FHA will use your original purchase price to calculate its value.
- The process is faster and easier than most other refinance programs.
- Qualify for the same rates as regular FHA mortgages.
- No prepayment penalties.
- You can qualify even if you have little or no home equity.
- You can't use an FHA Streamline refinance as a cash-out mortgage refinance.
- Closing costs cannot be rolled into the mortgage amount. However, you can choose a "no-cost" mortgage where the closing costs are paid by accepting a higher interest rate.
- You have to pay a mortgage insurance premium.
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