You can lower the payments very easily on your FHA loan by doing what is called an FHA Streamline Refinance. Doing a streamline refinance on an FHA loan is an easy and effective way to save money on your monthly debt without having to spend more money on a regular refinance of your mortgage.
FHA Refinancing Is Only Available To Primary Residences
If you live in your property and you have an FHA mortgage then the FHA Streamline Refinance program is for you. Only owner occupied properties qualify for the FHA Streamline Mortgage program. If you are trying to do this and you already have an FHA loan on the home but you don’t live there anymore making the property an investment property or a second home, you may be out of luck.
What Are The Qualifications For An FHA Streamline Refinance?
The FHA Streamline Refinance program allows people who are in good standing with their mortgage company to refinance without adding to their loan balance. This allows those who use this refinance program to save money on their mortgage payment. The following are the basic qualifications that you and your mortgage must meet to qualify:
- To be able to qualify for a Streamline Refi your current home loan must be an FHA Loan. If you do not have a FHA mortgage on your home then you will not qualify.
- If you do have an FHA mortgage your loan must be in good standing and the refinance must lower your monthly interest payments in order to qualify.
- If you have any more than one recent mortgage late payment you won’t be able to qualify.
- Your new mortgage payment must reduce your payment to get approved.
- You cannot get any cash back with this program.
How Do I Qualify For An FHA Streamline Refinance?
Doing an FHA Streamline Refi is very easy. In fact it is probably one of the simplest loan transactions to complete. All you need to do is call a mortgage company or you can inquire with GetPreQualified to see if your current mortgage situation qualifies for this loan program. Here are the following requirements:
- No appraisal on your property is required.
- There is no credit check.
- There are no qualifying debt ratios to worry about.
- No credit underwriting is necessary except your current mortgage history.
- There is no income verification to worry about. You do not even need to have a job to qualify for an FHA Streamline Refinance.
- You do not need to meet with a mortgage lender in person, everything can be done over the phone and on the Internet.
If you think that this option may be beneficial for you, contact us if you have any questions about your refinancing options. There is virtually no paper work to complete compared to a traditional conventional financing loan. Your loan officer should be able to get you all of the necessary paperwork to complete your loan application in less than an hour. If all goes well, an FHA Streamline Refinance on your property takes typically 30-45 days depending on when in the month you start the process.
What Can I Do With The Money From An FHA Streamline Refinance?
You can use the savings from your monthly payment for anything. You could use the money to send your kids to college, pay off credit card and other unsecured bills faster. You could also use the money from your refinance to help pay for a vacation or home improvements as well. The smartest thing to do with the extra money every month is to save it. You may want to meet with a financial adviser to design a financial plan that will make a difference for you in regards to your financial future.
Find Out if your mortgage is right for the FHA Streamline Refinance Program.
