What is FHA Streamline Refinancing?

If you have an FHA mortgage and are interested in securing a lower interest rate, FHA Streamline refinance is a great option to consider. FHA-insured mortgages are a type of nonconventional financing with flexible approval requirements, which makes them appealing for many types of borrowers. After just six months, qualifying borrowers can apply for FHA Streamline refinance. Borrowers can use any qualified lender to refinance; they are not required to use the same lender who originated their old loans. Read on to learn more about the process, and contact North Georgia Lending in Cumming, GA, if you would like to learn more and get a free quote.

FHA Streamline Requirements

FHA Streamline refinance requires minimal credit documentation and underwriting. There are, however, some basic requirements to consider.

  • First, FHA Streamline refinance is only available to borrowers who already have an FHA-insured loan.
  • The existing FHA loan must not be delinquent.
  • The Streamline refinance must benefit the borrower; that is, the new loan that replaces the old FHA loan must save the borrower money over time either with a better interest rate or term.
  • Applicants for FHA Streamline refinance cannot receive cash as a result of the refinance more than $500.
  • Closing costs for the refinance cannot be included in the value of the new loan.
  • Borrowers must have had their original FHA loans for at least six months.

Closing Costs

Remember, FHA mortgages and FHA Streamline refinances are insured – not funded – by the FHA. FHA-approved lenders, instead, fund these nonconventional loans. Several lenders offer “no-cost” refinancing to borrowers, which means they do not have to pay closing costs. Instead, the lender may pay for closing costs, though this may mean a higher interest rate than if the borrower paid these costs in cash.

FHA 203(k) Streamline Refinance

If you are interested in refinancing your current FHA mortgage and gaining cash for renovations to your home, you may be suited for an FHA 203(k) Streamline refinance. The cash allowance for renovation costs ranges from $5,000-$35,000, and this amount is added to the remaining balance of the original FHA loan. This type of refinancing is great for non-structural repairs, such as weatherizing a home, adding new flooring, and other projects. To get approved for 203(k) Streamline, you’ll need to work with a contractor and carefully itemize the different renovations you plan to make.

Explore Your Options

If you’d like to learn more about FHA 203(k) Streamline Refinance, contact North Georgia Lending in Cumming, GA. We can help you consider this an other refinancing options to help you save money, renovate your home, or achieve other goals.