An FHA Streamline Refinance is available as a fixed-rate mortgage or an adjustable-rate mortgage (ARM). FHA Streamline Refinance rates are as low as those for regular FHA mortgages, and the half-percentage point reduction on mortgage insurance premiums for FHA loans may also save you money on your monthly payment.
Eligibility and Property Requirements
- Principal residence: The home must be the homeowner’s principal residence.
- A perfect 12-month payment history: No 30-day, 60-day, or 90-day late payments are allowed. Existing loans must be current at the time of closing.
- A 210-day waiting period between refinances: The FHA requires that borrowers make six mortgage payments on their current FHA loan and that 210 days (about seven months) pass from the most recent closing date in order to be eligible for an FHA Streamline Refinance.
- “Net tangible benefit”: Applicants must demonstrate that the refinancing has an allowable net tangible benefit, which is generally defined as reducing the [principal + interest + mortgage insurance] component of the mortgage payment by 5% or more.
If you currently have a non-FHA loan, you may consider refinancing with an FHA refinance loan, but this will not be an FHA Streamline Refinance. You’ll need to apply with the usual employment verification, credit check, debt ratio requirements, etc. Academy can help you determine if this may be a beneficial option for you.
All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. Please contact Academy Mortgage Team 101 for more information.
Contact us to see how an FHA Streamline Refinance may benefit you.