FHA Streamline Refinance: How to Qualify

Due to President Obama's First Time Home Buyer's Credit Stimulus
plan, plenty of first-time homebuyers raced to close their homes by
June. As a result, a good majority of these people applied for FHA
loans. Typically, FHA loans allow the buyer to put as little as 3.5
percent down for purchase.Since June, interest rates for an FHA
mortgage have declined considerably and refinancing your FHA mortgage
makes complete financial sense. This refinance process is called an
FHA Streamline Refinance.The FHA refinancing option is considered
streamlined because it allows you to reduce the interest rate on your
current home loan quickly and WITHOUT an appraisal. The streamline
also cuts down on the amount of paperwork that must be completed by
your lender saving you valuable time and money. Oftentimes, this loan
process can be done under 30 days so you can start saving money
instantly.Also in an FHA Streamline Mortgage, there is a shortened
loan application. Neither employment nor assets need to be listed on
the loan application. All you need to do is obtain a copy of your
mortgage note and obtain a title commitment and you're good to
go.Qualifications of an FHA Streamline Refinance are listed below:1.
You currently have an FHA Loan2. You have at least a 640 credit
score.3. You have not had a 30-day mortgage late within the past (12)
twelve months.4. Your FHA refinance must lower your payments and
monthly principal5. You cannot have derogatory credit within the past
(12) twelve months.6. The refinance is "rate and term".7. If cash out
is desired, credit qualifying with an appraisal is required.In
summary, keep in mind that Streamline refinances are designed to lower
the principal and interest payments on a current FHA-insured mortgage.
In some cases, we can do a no-cost FHA Streamline Refinance; in other
words, it's 100 percent free to YOU the borrower to reduce your rate.