The Federal Housing Administration, commonly known as FHA, has a mortgage refinance program call FHA Streamline Refinance Mortgages which is available to all homeowners who currently have FHA Loans. FHA Streamlines is a fast-track refinance loan program where a homeowner with an FHA Loan refinance and close on their refinance a mortgage loan in two weeks or less. In this article, we will discuss and cover FHA Streamline Refinance Requirements With Limited Documents.

How Do Streamline Refinance Work

Here are some of the fast-track features on FHA Streamlines:

• Home Appraisal is not required.
• Income Verification is not required.
• There are no minimum credit score requirements.
• Since there is no income verification on all FHA Streamline Refinance Requirements, high debt-to-income ratios should not be a concern.

Borrowers do not have to worry about high DTI where they need to pay off credit card accounts and the lender scrutinizing their income tax returns, overtime, part-time income, and/or bonus income.

FHA Streamline Loans With Bad Credit

Borrowers can have bad credit and we do not care about recent late payments, collections, charge-offs, judgments, tax liens, as long as the homeowner has been timely on their mortgage payments for the past 12 months. One late payment in the past 12 months is allowed. No closing costs: Closing costs are paid by the lender. Limited paperwork needed: Tax returns, W-2s, paycheck stubs, bank statements are not required with Streamline Refinances. Closing in 2 weeks.

No Appraisal Required On FHA Streamline Refinance Requirements

FHA does not require a homeowner to get a new home appraisal on FHA Streamline Refinance mortgages. The reason they do not require an appraisal on FHA Streamline mortgage loans is HUD figures that they had an FHA appraisal when the homeowner purchased their home and the home is already insured by HUD. Why order a second appraisal if the home has been insured with FHA and the homeowner has been occupying the property and paying their mortgage payments on time.

FHA Streamline Refinance Requirements On Income Verification

With an FHA Streamline Refinance, there is no income verification. As long as the homeowner has been timely on their current FHA-insured mortgage loan for the past 12 months, that is good enough for FHA. Income qualification is probably the biggest and toughest aspect in qualifying for a purchase loan or refinancing a home loan. Without income verification, it streamlines the refinance mortgage loan process and that is the main reason why FHA Streamline Refinance mortgage loans close in 2 to 3 weeks.

No Credit Scores Required On FHA Streamline Refinance Loans For Homeowners With Bad Credit

There is an FHA Streamline Refinance mortgage loan program that does not require credit scores and those with bad credit can qualify. We normally take advantage of the no credit score FHA Streamline Refinance mortgage loan program for homeowners with credit scores of 580 FICO or worse.

FHA Credit Qual Versus Non-Credit Qualification Streamline Refinances

For any homeowner with credit scores of 580 FICO or higher, it is advantageous to the homeowner to use credit scores. The higher the credit score, the better the FHA mortgage rates. For example, a no credit score FHA mortgage loan applicant may get quoted an interest rate of 4.5%.

FHA Streamline Credit Score Requirements

A 580 FICO to 620 FICO credit score FHA Streamline Mortgage loan applicant may get quoted an interest rate of 4.25%. A 620 FICO to 680 FICO credit score FHA Streamline Mortgage Loan applicant may get an interest rate quoted 4.0% interest rate. A 680 FICO to 740 FICO credit score FHA Streamline Refinance mortgage loan applicant may get quoted an interest rate of 3.75%. Anyone with a credit score over 740 FICO credit score may get a 3.5% interest rate on an FHA Streamline Refinance. Please note that these rates are not actual rates quoted and are just used for illustration purposes. Bottom line is that good credit saves you money.

FHA Streamline Refinance Qualification Requirements

There are countless homeowners with FHA Loans where they can benefit from FHA Streamline Mortgages. The Streamline Refinance process is so simple and takes two weeks to close. All that is required is a recent mortgage payment bill and a homeowners insurance declaration page.

No Income Documentation And Employment Verification are Required On FHA Streamline Loans

Tax returns, W-2s, paycheck stubs, bank statements, and other documents required on a home purchase mortgage process are NOT REQUIRED. The best benefit for homeowners doing an FHA Streamline Refinance is that they get to skip two months of mortgage payments after they refinance their FHA Loan. Closing in two to three weeks. All original borrowers from the original FHA Loan need to be on the new Streamline Refinance Mortgage.

Where Does The FHA Streamline Closing Take Place?

Closing can be done at the homeowner’s home where the title agent will travel. No closing costs. All closing costs will be paid by the lender with a lender credit. To see how much money can be saved and see what types of net tangible benefit homeowners can benefit from, contact us at Capital Lending Network, Inc. at 262-716-8151 or text us for a faster response. Or APPLY NOW ONLINE. Borrowers can also email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays. Again, there are no closing costs because we offer full lender credit to all of our FHA Streamline Refinance borrowers and homeowners get to skip two mortgage payments.

Taking The Opportunity For Historic Record Mortgage Rates To Streamline Refinance

Mortgage rates across the board on all mortgage loan programs are at an 18 month high and there are no signs of a correction. Rumor has it that mortgage rates will go higher in the coming months and even more so next year. The economy is hot and there seems to be good news daily. Mortgage Rates are still low from the highs so there are still opportunities for homeowners to be able to benefit from FHA Streamline Refinance. Homeowners with an FHA loan can benefit from today’s FHA mortgage rates by doing an FHA streamline refinance. We will further discuss and cover FHA Streamlines.

HUD Streamline Guidelines

FHA allows current borrowers with a current FHA loan and who have been current on their FHA mortgage payments in the past 12 months to do an FHA streamline refinance:

• There are FHA Streamline Refinance Programs that requires no minimum credit scores, no income verification, and no new appraisal
• However, to get the best interest rates, borrowers with higher credit scores should go for the credit score only to streamline
• Homeowners can do FHA streamline refinance on high-balance FHA loans

Many homeowners can save tens of thousands of dollars throughout the life of their loan by taking advantage of the current mortgage rates by refinancing their current FHA loan.

FHA Streamline Mortgage Lenders With The Lowest Rates

Capital Lending Network, Inc. has a national reputation for having competitive rates in the nation on FHA streamline refinances. The only qualification needed is that the main borrowers and co-borrowers be current on their FHA mortgage loan payments in the past 12 months. Some lenders will allow a one-time 30-day late payment in the past 12 months on their FHA mortgage payments. With streamline loans, no credit scores are required, no income verification is required, and no appraisal is required.

Can I Qualify For An FHA Streamline Loan With Bad Credit

Yes.  The only credit criteria needed to qualify for an FHA streamline is homeowners need to be current FHA loan payments timely for the past 12 months. As mentioned above, some lenders will allow a one-time 30-day late payment in the past 12 months. Other credit monthly payments do not matter.

Can I Get Approved For An FHA Streamline With Late Payments In The Past 12 Months?

Homeowners can have been late on a car payment, credit cards, installment loans, and other creditors even in the past 12 months as long their FHA loan monthly payment has been timely.

Can I Qualify For FHA Streamline Loan With High Debt To Income Ratio?

There is no income verification required to qualify for an FHA streamlined mortgage.

• However,  borrowers do need to have full-time employment
• Income will not be verified

Debt-to-income ratios will have no impact on an FHA streamline refinance.

Why Is A New Appraisal Not Required On Streamlines?

FHA does not require a new appraisal. Since they already approved the homeowner for an FHA loan with an FHA-approved appraisal when they purchased the home, HUD figures they are safe:

• FHA streamline refinance home loan is for rate and term only
• Cash-out is not allowed on Streamline
• FHA figures if they insured borrowers with a prior FHA appraisal, their collateral will still be safe

This is the reason they are waiving a new appraisal.

Other Guidelines On FHA Streamline

To be eligible for an FHA streamlined refinance home loan, homeowners need a net tangible benefit of their current housing payment to be reduced by at least 5% or more.

• If there is no net tangible benefit to the homeowner, they will not qualify for an FHA streamline refinance
• For example, if the current total monthly housing payment is $1,000, to qualify for an FHA streamline, new payment needs to be reduced to at least $950.00 or less

Closing costs on FHA streamlines can be covered by lender credit.