How to Qualify for an FHA Streamline Program Loan

The Federal Housing Administration offers a generous refinancing option known as the FHA Streamline Program for qualified homeowners with an FHA loan looking to lower their mortgage rate and monthly payments. Essentially, this program is the fastest and most convenient way to refinance an FHA loan and even lower mortgage insurance premiums and your current interest rate.

As its name suggests, the process is highly streamlined and requires little paperwork. On average, borrowers can reduce mortgage payments between $150-$250 per month. Here’s how to qualify.

FHA Streamline Refinance Requirements

While the qualifications for FHA Streamline loans are lax, here are some basic guidelines to help determine whether you qualify for refinancing and/or will benefit from this program.

  1. You must primarily live in the home being refinanced.
  2. Qualifications require homeowners to be current on mortgage payments with no more than one late payment for the previous 12 months. If the loan is 12 months old or less, no late payments are permitted.
  3. Borrowers cannot have utilized Streamline refinancing in the past six months.
  4. To be eligible, one must wait 210 days past the closing date of the FHA loan in order to apply.
  5. A FICO credit score of 620 or higher is recommended before applying, so take care of any issues hindering credit ratings.
  6. The refinancing must save the borrower money, whether it be through lower monthly interest, principal payments or through converting from an ARM to a fixed-rate mortgage.

Some benefits of the FHA Streamline Program include that during the refinancing process, paperwork from the original loan are used, so no paycheck stubs or W-2’s are necessary. Essentially, current employment will not be considered for eligibility. Furthermore, no home appraisal is necessary, making this a relatively simple process.

Whether you are seeing advice about the FHA Streamline Program or need any type of mortgage options or advice, contact the professionals at Mortgage Investors Group today.