FHA Streamline Refinance

As times change so does FHA. FHA has been streamlining the refinance process for Americans since the early 1980s, saving them hundreds of dollars a month and thousands of dollars a year. In order to take advantage of an FHA Streamline Refinance, four essential components must be in place:

• Monthly principal and interest payments must be reduced
• No cash-out refinancing is permitted
• Current mortgage being refinanced must be FHA-backed
• All mortgage payments on existing loan must be current

The underwriting process for an FHA Streamline Refinance considerably reduces the requirements of documentation needed. Compared to the underwriting requirements for a conventional loan or even an FHA purchase, an FHA Streamline Refinance makes perfect sense.