Streamline refinancing is refinancing an existing FHA-insured mortgage with limited borrower credit documentation and underwriting. There are two different kinds of streamlines with FHA mortgages, which are credit qualifying and non-credit qualifying. A borrower must meet requirements for an FHA Streamline, which include:
The mortgage must already be an FHA Insured loan.
The mortgage must be current. Loan cannot have any 30 day lates in the past 6 months prior to the Case # Assignment. No more than one 30 day late in the previous 12 months.
Some liens can be subordinated – For example, deferred interest from a loan modification.
The FHA Streamline Refinance allows you to refinance your mortgage without an appraisal, no credit score, and no income documentation. In some cases, it allows you to lower your mortgage insurance - on January 26, 2015 they lowered the mortgage insurance premium.
Refund of escrow account.
In the case of an escrow shortage, a new escrow account will be set up with the appropriate amount for taxes and insurance plus a 2 months cushion for any future increase in taxes and insurance.
Defer up to two mortgage payments!
Now includes manufactured homes!
Bankruptcy and FHA Streamlines:
An Active Chapter 7 Bankruptcy is not permitted. Bankruptcy must be discharged, but no seasoning required.
Active Chapter 13 Bankruptcy is permitted with a court approval and proof trustee payment has been satisfactory. A discharged Chapter 13 Bankruptcy does not require any seasoning.
Some lenders have overlays and will not allow a streamline refinance with a recently discharged Chapter 7 or 13 Bankruptcy. If you have been denied in the past, it may have been because of lender overlays or being not properly qualified.
All loans are subject to credit, underwriting and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions and programs are subject to change without notice. Nationwide Mortgage & Realty, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. CO: Check license status of your mortgage loan originator at www.dora.state.co.us/real-estate/index.htm. Also licensed in: FL. VA, and TX: NMLS ID 276777. Illinois Residential Mortgage License | MB. 6760210. WA: Consumer Loan License MB-276777. GA: Georgia Residential Mortgage Licensee 60857