FHAi streamline refinancing program emerged onto
the mortgagei scene in the early 1980's. Since then, thousands of FHA home
owners have utilized this program to lower their interesti ratei with fewer
costs and relative ease.

A FHA
streamline refinancei refers only to the amount of documentation and underwritingi
that is conducted on a loan file by the mortgage company. Mortgage companies
may offeri FHA streamline refinancing programs at "no cost" (actually
no out-of-pocket expenses to the borroweri) by charging a higher interest
rate on the new loan. Other companies may offer streamline refinances
that wrap the costs into the new mortgage amount. Unfortunately, there
must be sufficient equityi in the property. Before deciding which option
best fits your needs, it is important to weigh not only the costs but
also the long term impact that a higher rate or a higher mortgage payment
will have.

An FHA
streamline refinancing program does not require crediti underwriting, unless
the principali balancei is increasing, in which case, HUDi requires a 12
month payment history. New individuals may be added to titlei on a streamline
refinance without credit review. Deleting individuals from title on a
streamline refinance may require qualification (certain exceptions may
apply).

The following
are basic requirements of a FHA streamline refinancing program:

• The
  mortgage to be refinanced must already be FHA insured

• The
  borrower must have been making the mortgage payments on time

• The
  refinance must lower the principal and interest paymenti of the previous
  mortgage payment

• The
  borrower may not receive cash from loan proceeds

• Any
  subordinate financingi may remain in place as long as it is subordinated
  on title.

• The
  loan must have owned the property and had the FHA mortgage for at
  least six months to be eligible

• The
  term of the new mortgage must be the lesser of 30 years or the un-expired
  term of the mortgage plus 12 years.  A borrower cannot refinance
  from a 15 year loan to a 30 year loan.

• An appraisali is not required unless the closingi costsi
  are wrapped into the loan.  Streamline refinances without
  an appraisal are limited to the unpaid principal balance, minus
  any refund credit of the mortgage insuranceii premiumi (MIPi), plus
  the new up front MIP if it is to be financed in the mortgage.

• No termite report
  is required

• The borrower cannot be late, delinquent,
  or in defaulti of any federal debti.

To find the current FHA streamline refinance
rates, check out our current rates section. FHA streamline refinance
interest rates change almost everyday, so it's important to check often
and lock in the lowest rate.

About Cash
Out Refinancing   

Cash
out refinancing on properties owned more than one year prior to the refinance
are permitted on owner occupied principal residences only, and are limited
to 85% of the appraised valuei plus the allowable closing costs.

A cash
out refinance is when a borrower refinances their current mortgage for
more than they owe in order to pull out the built up equity that has accrued
in the home. The amount a home owner can borrower is limited by the value
of the property compared to the loan amounti (otherwise known as the loan-to-valuei
or LTVi). 

The following
are basic requirements of a FHA cash out refinance:

• If
  the property was purchased less than one year preceding the refinance,
  the borrower is allowed to refinance up to 85% of the original sales
  price plus the allowable new closing costs or the appraised value
  plus the allowable closing costs (whichever is lesser)

• If
  the property was purchased more than one year preceding the refinance,
  the borrower can cash-out 85% of the the appraised value plus the
  allowable closing costs

• Applies
  to owner occupied properties only

• 2nd
  mortgages may be paid off with the cash-out refinancei (the second
  mortgage must be at least 12 months old)

• Loan
  amounts may not exceed the maximum loan limits for the area

• If
  the new loan is to refinance an existing mortgage to buy out an ex-spouse's
  equity, a divorce decree or settlement agreement must be provided
  to document the equity awarded to the ex-spouse

• All
  borrowers must credit qualify

• Borrowers may be eligible for a refund of any unused
  portion of the mortgage insurance premium (MIP) and the new
  mortgage may require a new up front MIP.