House Refinance Center
Government Loan Programs (FHA)
Streamline FHA
Mortgage: Less
Underwriting
For A Refinance

If you are looking to refinance your
mortgage, the FHA is the place to start
looking.

Streamline refinances on insured
mortgages have been around since the
early 1980's. The term "streamline" refers
to the amount of underwriting and
documentation that is required. There will
still be closing costs associated with
getting the transaction completed.

The basic requirements for a streamline
refinancing mortgage is as follows:
  • The mortgage to be refinanced
    must already be FHA insured.
  • The mortgage must be current.
  • The refinance will lower the monthly
    mortgage payment.
  • No cash may be taken out on the
    mortgage.
  • The current mortgage must be in
    effect for a minimum of six month
    before you can refinance.

Lenders offer streamline mortgages in a
variety of ways. The focus in usually on
the closing costs. The borrowers can pay
the closing costs upfront, out-of-pocket.
Other borrowers may chose to have the
closing costs factored into the interest
rate, by paying a slightly higher rate.

Additional features of the streamline
mortgage are:
  • No appraisal is required. The
    lender will use an automated
    valuation. This is a computer
    program used to establish the value
    of a house when a full appraisal is
    waived.
  • Minimum credit is acceptable. A
    mortgage payment history will be
    examined. Late payments are not
    acceptable.
  • Futhermore, if the refinance is less
    than 12 months, there will be
    verification of income, employment
    or asset verification.

With limited documentation a streamline
refinancing mortgage can close in as little
as three days.

So in a nutshell the benefits are a quick
close, lower payments, and minimum
paperwork.
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203(b) Mortgage: HUD
Backing

The objective of the 203(b) mortgage for a
homeowner to purchase or refinance their
principal residence. The mortgage is funded by a
regular lender and is insured by HUD.

Requirements

The borrowers must meet standard FHA credit.

The borrower is eligible for about 97% financing.

The borrower must pay the upfront insurance
premium, plus be able to pay the annual premium.

Eligible properties are one to four unit houses.