FHA Streamline Loans
The FHA streamline mortgage allows you to refinance your existing FHA loan. By utilizing the streamline loan, you can easily reduce the interest rate on your current FHA loan.
The process to apply for the streamline loan is simple and easy. It involves very less paperwork and has relaxed credit qualification requirements. An appraisal is not required if your new loan amount and the closing costs are lower than the original loan amount. However, in case the loan amount is higher than your original loan amount, then you may require an appraisal to determine your property’s equity.
FHA Streamline Loan Requirements
To apply and qualify for an FHA streamline loan, here are some requirements you must fulfill:
- Your existing mortgage that you want to refinance should be an FHA loan
- The subject property should be your primary residence not a vacation home
- You should be current on your loan payments
- No cash from the equity in the home can be taken out
Benefits of the FHA Streamline Loan
Here are some benefits of the FHA streamline loan:
- Very minimal supporting documentation needed from the borrower
- In most cases, no new appraisal is required
- You don’t have to prove that you meet the debt to income ratio required by HUD
- Refinance your existing FHA loan at a lower interest rate
- Refinance your existing FHA loan at reduced mortgage insurance premiums
FHA Streamline Loans Offered at Fixed and Adjustable Rates
We offer fixed rate and adjustable rate loans. With fixed rate loan, your interest rate and monthly payments remain consistent throughout your loan term. Whereas with adjustable-rate mortgage, while the payments and rate remain unchanged during the introductory period which can be 3 to 5 years, but once this period expires, the rate is adjusted after every six months according to the market situation and payments are then accordingly revised.
LTV (loan-to-value) ratio on the other hand is largely dependent on whether your mortgage is with an appraisal or without it. It is important to understand that FHA mortgage limits vary. The loan limit is determined by the type of your property such as single-family home or multi-family home, the State and County.
For more information on FHA streamline loans or assistance with FHA streamline process and paperwork filing, get in touch with us. Our experienced mortgage consultants will provide you quality guidance and help you determine the best loan type for your situation.